Qodo raises $70M to bring verification to AI-generated code

Qodo, a software development startup founded in 2022, has raised a $70 million Series B round—a standard growth-stage venture capital round—bringing its total funding to $120 million. The round was led by Qumra Capital, with participation from Maor Ventures, Phoenix Venture Partners, S Ventures, Square Peg, Susa Ventures, TLV Partners, and Vine Ventures. Individual investors Peter Welinder of OpenAI and Clara Shih of Meta also joined the round. The company plans to use the capital to scale its AI code verification platform.

The funding comes as enterprises accelerate their adoption of AI coding tools, though trust in their output remains low. According to a survey cited by the company, 95% of developers do not fully trust AI-generated code, and only 48% consistently review it before committing. This highlights a growing gap between the speed of code generation and its actual quality, as faster code output does not necessarily translate into reliable or secure software.

To address this reliability bottleneck, Qodo focuses on how code changes affect entire systems rather than just analyzing individual changes. The startup recently ranked No. 1 on Martian’s Code Review Bench—a third-party industry benchmark for AI coding performance—scoring 64.3%. This score puts Qodo 10 points ahead of the next competitor and 25 points ahead of Claude Code Review. The platform is already used by high-growth firms like Monday.com and several major enterprise customers, including:

• Nvidia
• Walmart
• Red Hat
• Intuit
• Texas Instruments

Qodo’s approach is built on the premise that large language models (LLMs) require external context to perform effective code governance. “Code generation companies are largely built around LLMs. But for code quality and governance, LLMs alone aren’t enough. Quality is subjective. It depends on organizational standards, past decisions, and tribal knowledge. An LLM can’t fully understand that context. It’s like taking a great engineer from one company and asking them to review code at another — they lack the internal context,” said Itamar Friedman, founder and CEO of Qodo. Friedman argues that the industry is transitioning from stateless AI to stateful systems that retain context across interactions, a phase he describes as moving from intelligence to “artificial wisdom.”

Why it matters

As AI coding tools generate massive volumes of code, the industry is shifting from simple generation to verification. Qodo is positioning itself as the layer that ensures this code is actually functional and secure.