How a team from Karlsruhe wins deals against Microsoft and IBM
- Codesphere, which enables developers to program and scale complex applications directly in the cloud, has secured $18 million in funding
- This investment will fuel further expansion of Codesphere’s services, including cost efficiency when using LLMs and improved collaboration for developer teams
- Organizations leveraging Codesphere include L-Bank, Tel.io, Arkane, Gigabyte and Eurotours
- Pan-European VC Creandum led the investment round with existing investors including LEA Partners, Begin Capital, 42CAP and 468 also participating
Karlsruhe, Germany, May 17, 6AM CET 2024 - Codesphere enables developers to program and scale complex applications directly in the cloud without the traditional challenges of DevOps and containerization. This leads to a significant reduction in infrastructure costs and makes the development process self-service.
"Our technology allows developers to focus 100% on feature creation, which not only increases efficiency but also saves significant labor costs," says Elias Schneider, CEO of Codesphere.
Codesphere recently started offering its services "air-gapped" and "on-prem" for companies, which means companies can use their applications without an internet connection and have the option of hosting on their own servers, particularly important for critical infrastructure.
When VMware, one of the world's largest cloud providers, changed its license model at the beginning of the year and significantly increased its prices, international companies turned their attention not to Silicon Valley but to Karlsruhe where Codesphere is based.
One of Codesphere’s new customers is Staatsbank Baden-Württemberg (L-Bank). Nino Messaoud, CIO of L-Bank, commented on the collaboration: "Codesphere's integration is part of our transformation strategy, accelerating our goal to become the most digital development bank in Europe." Other customers include Tel.io, Arkane, Gigabyte and Eurotours.
Codesphere continues its rapid growth with a $18 million Series A funding round led by Creandum. Founded in 2020, Codesphere has now raised $26.5 million to date. This new capital injection will allow the company to expand its services further, including developing new solutions to manage the cost efficiency of large language models (LLMs) and improve collaboration within development teams.
"Despite the current investment landscape, we use the new financing to expand and further develop our platform. Our goal with Codesphere is to play in the league of Microsoft, AWS and Google,” said Schneider.
Carl Fritjofsson, GP at Creandum: “Codesphere is one of those incredible opportunities with almost unlimited upside. It caters to traditional enterprises looking for cost-effective ways to modernize their IT stack and development processes, to modern software companies looking for scalability, as well as personal hobby developers in need of simplicity and speed.”
About Codesphere
Founded in 2020, Codesphere enables individuals and organizations to code directly in the cloud and scale applications globally. As a leading Platform-as-a-Service solution, the team of former Google developers has already secured $26.5 million in investment from Creandum, 468, 42CAP and individuals including Ben Uretsky (Digital Ocean), Auke van Urk (Valtech), Ewa Treitz (AWS) and Dion Almaer (Google Cloud). Codesphere is working with companies like Staatsbank Baden-Württemberg (L-bank), Tel.io, Arkane, Gigabyte / Arkane, and Eurotours to name a few.
About Creandum
Founded in 2003, Creandum is a leading pan-European early-stage venture capital firm. The fund’s portfolio of 120+ companies includes some of Europe’s most successful tech companies across a wide range of industries, including Spotify, Klarna, Depop, Factorial, Trade Republic, Pleo, and neo4j. One out of six companies in the portfolio has become a billion USD company. Creandum's advisory teams are based in Stockholm, London, Berlin, and San Francisco and offer extensive operational expertise to support the funds’ portfolio companies from seed to exit to become global category leaders. Learn more at www.creandum.com.