Vercel, a Frontend Cloud platform, has secured $250M in funding for a $3.25 billion valuation to enhance its AI capabilities, empower developers, and strengthen security measures. Led by Accel, with participation from CRV, GV, Notable Capital, Bedrock, Geodesic Capital, Tiger Global, 8VC, and SV Angel, this investment will bolster Vercel’s mission to enhance its platform’s capabilities.
Vercel’s Frontend Cloud platform has become indispensable for developers and enterprises because it automates infrastructure. Companies like Under Armour, Unity, Sonos, and Nintendo leverage Vercel to focus on application layers and user experiences. Recently, Vercel surpassed $100M in annualized revenue with its Next.js technology, which is used by over one million developers monthly, powering major web applications.
“Vercel’s Frontend Cloud has been adopted by a growing number of enterprises globally to build more performant personalized web experiences,” said Guillermo Rauch, CEO and Founder of Vercel.
Vercel Innovating with AI and Security
This new funding will help Vercel integrate AI and enterprise-grade security into its offerings. Vercel plans to invest in v0, its Generative UI product, making product creation as easy as describing ideas via prompts. Additionally, the company will enhance its Vercel AI SDK, providing a comprehensive framework for building AI applications.
“As we enter this next stage of growth and innovation, the Vercel team remains focused on helping more companies securely deliver AI-driven, dynamic digital experiences. We are grateful for the support from our investors as we build upon our mission of enabling the world to ship the best products,” said Guillermo Rauch.
Vercel prioritizes security, investing in enterprise-grade protections to ensure customer safety. Currently mitigating nearly one billion threats weekly, Vercel will continue to enhance its security capabilities to support large enterprises with complex workloads and counter emerging AI-driven threats.
Bright Future for Web Development
Vercel enables customers like Under Armour, The Washington Post, Stripe, and Wayfair to build dynamic, personalized web experiences, unlocking developer potential from idea to global application in seconds.
Dan Levine, partner at Accel, said, “Today’s businesses have come to recognize the front end as a powerful force for driving revenues. The Vercel team understood this nearly a decade ago and is ahead of the curve in terms of AI’s role in the future of the web.
“Vercel’s vision is the reason why we first partnered with Vercel in the earliest days, and we remain confident in the company’s track record to take on the sizable market opportunity ahead as AI becomes a staple in how developers and enterprise teams define dynamic online experiences and web applications,” added Dan.
Vercel’s $250M Series E funding marks a significant milestone, empowering the company to deliver advanced technology and security to developers and enterprises worldwide. As Vercel continues to innovate, its Frontend Cloud platform will boost the future of web development.
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