Qodo, a startup developing AI agents for code review, testing, and governance, has raised $70 million in a Series B round led by Qumra Capital, bringing its total funding to $120 million.
The round also included Maor Ventures, Phoenix Venture Partners, S Ventures, Square Peg, Susa Ventures, TLV Partners, Vine Ventures, and several strategic investors. The company is focused on improving the reliability and governance of AI-generated code as enterprises increasingly adopt automated coding tools.
What The Company Does
Founded in 2022 by Itamar Friedman, Qodo builds AI systems designed to verify, review, and manage code generated by large language models. While many tools in the market focus on accelerating code generation, Qodo addresses the downstream challenge of ensuring that this code functions correctly within complex systems.
Its platform evaluates not only individual code changes but also their broader impact across entire software environments. This includes analysing historical codebases, organisational standards, and risk parameters to provide context-aware validation.
By focusing on system-level verification rather than isolated edits, Qodo aims to help enterprises maintain code quality and operational reliability as development processes become increasingly automated.
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Market Context / Industry Background
The rapid adoption of AI coding tools has significantly increased software output, but it has also introduced new risks related to code quality, security, and maintainability. Enterprises are beginning to recognise that faster code generation does not necessarily result in reliable or production-ready systems.
Recent data indicates a disconnect between awareness and practice: while a large majority of developers express concerns about AI-generated code, fewer consistently review it before deployment. This creates a growing need for dedicated verification layers that can operate alongside generative systems.
At the same time, major AI companies such as OpenAI and Anthropic are shaping the broader development ecosystem, though their focus remains primarily on model capabilities rather than end-to-end governance solutions.
Founder / Investor Commentary
Itamar Friedman, founder and CEO of Qodo, highlighted the structural difference between generating and validating software systems, explaining that the two require fundamentally different approaches. Drawing on his experience at Mellanox and later at Alibaba’s Damo Academy, he noted that advances in AI made it clear early on that code generation would scale rapidly, but verification would require separate, context-aware systems.
He also pointed out that code quality is inherently dependent on internal standards, past decisions, and organisational knowledge, adding that large language models alone cannot fully capture this context. According to Friedman, this gap positions verification as a critical layer in the next phase of AI-driven software development.
Growth Plans / Use Of Funds
The newly raised capital will be used to further develop Qodo’s platform and expand its enterprise adoption. The company is focusing on improving performance and differentiation in a competitive market, where many solutions are still in early stages.
Qodo recently introduced Qodo 2.0, a multi-agent system designed to enhance code review processes, alongside tools that adapt to each organisation’s internal definition of code quality. The platform has also achieved strong benchmark performance, ranking first on Martian’s Code Review Bench, reflecting its ability to detect complex issues without generating excessive noise.
The company is already working with large enterprises including NVIDIA, Walmart, Red Hat, Intuit, and Texas Instruments, as well as technology-focused firms such as Monday.com and JFrog. Moving forward, Qodo aims to expand its presence across organisations seeking to implement more reliable AI-driven development workflows.
About Qodo
Qodo is an AI software company focused on code verification, testing, and governance. Founded in 2022 and headquartered in New York, the company develops systems designed to ensure the reliability and quality of AI-generated code. Its mission is to provide enterprises with the tools needed to manage increasingly automated software development processes.
