Argentine Unicorn Vercel Raises $250 Million in Series E Funding Round •
Vercel, an Argentine software startup that provides a platform for creating cloud-based web applications, announced it has raised $250 million in a Series E funding round. This latest round brings Vercel’s valuation to $3.25 billion. The round was led by Accel, with participation from existing investors CRV, GV, Notable Capital, Bedrock, Geodesic Capital, Tiger Global, 8VC, and SV Angel.
The company, founded in 2015 and headquartered in San Francisco, reported surpassing $100 million in annual revenue and stated that more than one million developers use its Next.js technology monthly. Next.js is an open-source framework for building web applications.
CEO Guillermo Rauch described Vercel’s role in helping non-tech-native companies migrate and deploy websites to cloud infrastructure, significantly improving load speeds. Rauch likened the complexity of cloud infrastructure to “a bag with 3,000 Legos,” emphasizing how Vercel simplifies this process.
Expansion and Product Development
The recent funding will be utilized to develop a new product, v0, which leverages generative AI to create user interfaces from text descriptions. This innovation allows users to describe their desired websites, and the system generates the necessary code, eliminating the need for programming knowledge. Additionally, Vercel plans to enhance its security products.
Vercel’s client roster includes major names like Under Armour, as well as startups like Perplexity and OpenAI. The company aims to continue expanding its influence in the web development sector, focusing on improving e-commerce sites and media platforms. The pandemic has accelerated the demand for visually appealing and fast-loading websites, a trend Vercel has capitalized on.
Global Presence and Future Plans
Vercel operates with a global mindset but retains its Argentine roots. The company has about 80 employees, mainly based in its San Francisco office, with developers from around the world. Investors like Bedrock Capital and Accel back Vercel, and new participants in this round include 8VC, Flex Capital, GGV, Latacora, Salesforce Ventures, and Tiger Global.
Despite its global operations, Vercel prides itself on its Argentine DNA. Rauch encourages aspiring programmers to focus on front-end development and design, offering free tools to help beginners create exceptional online experiences. He emphasizes the importance of design in modern web development and Vercel’s commitment to supporting designers.
CEO Guillermo Rauch’s Vision
Guillermo Rauch is recognized as one of the most influential figures in web development. He was an early investor in Auth0, another Argentine unicorn, which was sold for $6.5 billion. Rauch also invested in Coder House, a virtual course platform. He believes in the innovative potential of Argentine talent and urges aspiring developers to seize the moment.
“Argentines will continue to create innovative companies. Our talent is undeniable. Now is the time to program and design great things!” said Rauch.
