Venture Capital

Vercel Rakes In $250 Million Series E

SAN FRANCISCO — Vercel, operator of a Frontend Cloud platform, has secured $250 million in Series E funding at a valuation of $3.25 billion. The investment round was led by existing investor Accel, with participation from other existing investors including CRV, GV, Notable Capital (previously GGV Capital), Bedrock, Geodesic Capital, Tiger Global, 8VC, and SV Angel.

Vercel has won over developers and enterprises by automating infrastructure, enabling companies like Under Armour, Unity, Sonos, and Nintendo to focus on the application layer and user experience. With strong momentum behind its Frontend Cloud platform, Vercel recently surpassed $100M in annualized revenue. Vercel’s Next.js technology, with over 1 million monthly active developers, powers the world’s largest web applications—positioning itself at the forefront of the Generative AI revolution.

This new funding will help Vercel deliver the combined power of its Frontend Cloud, AI, and enterprise-grade security to every developer, user, and company. With AI transforming the way developers build and deliver software, Vercel will invest in further building v0, its groundbreaking Generative UI product that makes product creation as simple as describing ideas via prompts. Additionally, the company will invest in its Vercel AI SDK, providing developers and teams with a comprehensive framework for building AI applications and products.

As Vercel continues to offer a more comprehensive Frontend Cloud platform, security remains a top priority. The company will strengthen its investment in providing enterprise-grade security, ensuring that customers can enjoy the ease of use and peace of mind that comes with Vercel’s ability to automate away infrastructure needs while protecting their applications and products. With Vercel already mitigating nearly one billion threats every week, the company is committed to enhancing its security capabilities to support large enterprises with complex workloads and defend against emerging challenges and threats driven by AI growth.

“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. “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.”

Dan Levine, partner at Accel, expressed his confidence in Vercel’s vision and track record, stating, “Today’s businesses have come to recognize the frontend as a powerful force for driving revenues. The Vercel team understood this nearly a decade ago, and is ahead of the curve on AI’s role in the future of the web as well. Their 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.”