A new developer tools startup founded by former GitHub CEO Nat Friedman has raised $60 million in what is being described as one of the largest seed funding rounds in the dev tools space, valuing the company at approximately $300 million. The round reflects sustained investor appetite for AI powered infrastructure aimed at transforming how software is built and maintained.
The company, still operating in stealth mode, is focused on building tools that integrate artificial intelligence directly into the software development workflow. While specific product details remain limited, the startup is understood to be developing AI driven systems designed to assist developers with code generation, debugging, automation and collaboration.
Friedman, who previously led GitHub following its acquisition by Microsoft, has been an active investor and operator within the AI ecosystem. His experience overseeing GitHub’s expansion during a period of rapid growth in developer adoption and cloud integration has positioned him as a prominent figure in developer infrastructure and open source communities.
The $60 million seed round stands out not only for its size but also for the valuation attached at such an early stage. Seed rounds typically fund initial product development and market validation, yet investor willingness to assign a $300 million valuation indicates strong confidence in the founding team and the broader AI dev tools opportunity.
Artificial intelligence has rapidly reshaped the developer tools landscape. AI assisted coding platforms, including those offering autocomplete, bug detection and documentation generation, have gained traction across startups and enterprises. Developers are increasingly adopting AI copilots that accelerate coding tasks and reduce repetitive workloads.
The new startup is expected to compete in this emerging segment, where differentiation increasingly depends on workflow integration, accuracy and enterprise readiness. While large technology companies have introduced their own AI coding assistants, independent startups continue to attract capital by focusing on specialised features and developer experience.
Investor enthusiasm around AI infrastructure remains high, particularly in areas that directly influence productivity. Developer tools represent a strategic layer within the AI ecosystem because improvements in coding efficiency can compound across software teams and organisations. Platforms that embed AI into daily development processes are viewed as having strong monetisation potential.
Friedman’s background adds credibility to the venture. During his tenure at GitHub, the platform expanded its enterprise footprint and integrated AI powered tools such as code suggestion features. His familiarity with developer communities and enterprise software markets may help the new company navigate early product development and go to market strategy.
The funding round reportedly includes participation from prominent venture capital firms with deep experience in enterprise technology. Large seed rounds are becoming more common in AI related startups, particularly when founders have established track records. Investors are often willing to commit significant capital early to secure positions in companies they view as category defining.
Valuations at the seed stage, however, can attract scrutiny. A $300 million valuation sets high expectations for growth and execution. The company will need to demonstrate clear product differentiation and sustained developer adoption to justify investor confidence as it moves beyond stealth.
The developer tools market is evolving rapidly as AI becomes more embedded in code repositories, version control systems and collaboration platforms. Automation that once required manual scripting can now be handled through natural language prompts and model driven reasoning. This shift is redefining skill requirements and workflows across engineering teams.
Industry analysts note that startups operating in this space face both opportunity and competition. On one hand, AI lowers barriers to entry for developers building new products. On the other, established platforms such as GitHub, GitLab and major cloud providers are integrating AI features into their ecosystems, potentially limiting room for standalone solutions.
The new company’s strategy appears to focus on building AI native infrastructure rather than retrofitting existing systems. AI native design allows products to be architected around large language models and automated reasoning from inception, which can result in more seamless integration than add on features.
As generative AI matures, enterprise buyers are increasingly concerned about reliability, security and compliance. Developer tools must meet stringent standards to be adopted at scale. Investors backing Friedman’s startup are likely betting that his experience in enterprise software governance will help address these concerns.
The broader funding environment for AI startups has remained active despite volatility in other technology segments. Capital continues to flow toward infrastructure, model development and productivity tools that promise measurable efficiency gains. Developer centric platforms sit at the intersection of these themes.
While the company has not disclosed a launch timeline, large seed rounds typically support rapid hiring and product iteration. Building engineering teams capable of refining AI models and scaling infrastructure will be central to the startup’s next phase.
Friedman’s move from leading a global developer platform to launching a new venture underscores how experienced technology leaders are re entering the startup arena to capitalise on AI’s transformative potential. The transition also reflects a broader cycle in which former executives leverage operational expertise to build next generation tools.
For the developer ecosystem, the emergence of another well funded AI tool signals continued innovation and competition. Software development is increasingly shaped by automation and intelligent assistance, altering how code is written, reviewed and deployed.
The $60 million seed round positions Friedman’s startup as one of the most closely watched entrants in the AI dev tools category. Whether it can translate capital and credibility into sustained product impact will depend on execution, differentiation and developer trust.
As artificial intelligence continues to redefine productivity across industries, platforms that shape how software is created may become foundational. The scale of this early funding round suggests investors believe the next wave of developer infrastructure will be built around AI from the ground up.
A new AI dev tools startup founded by former GitHub CEO Nat Friedman has secured $60 million in seed funding at a $300 million valuation.
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