Coding startup GitLab hits $2.75B value with new funding

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(Bloomberg) --GitLab Inc., a platform for developing and collaborating on code, has raised $268 million in new funding in a round valuing the startup at $2.75 billion, more than double its last valuation, the company said.

The San Francisco-based startup provides a single application for companies to draft, develop and release code. The product is used by companies including Delta Air Lines Inc., Ticketmaster Entertainment Inc. and Goldman Sachs Group Inc.

GitLab helps companies “get faster from ‘I want to make this,’ to getting the software out the door,” Chief Executive Officer Sid Sijbrandij said in an interview. “All the companies are becoming software companies, every change you want to make influences software, and the faster you can make that change, the easier it is.”

The new funds will be used to add monitoring and security to GitLab’s offering, and to increase the company’s staff to more than 1,000 employees this year from 400. GitLab is able to add workers at a rapid rate, since it has an all-remote workforce, Sijbrandij said.

The investment also comes in preparation for a potential public offering next year. GitLab’s largest competitor, GitHub Inc., was acquired by Microsoft Corp. in a stock deal announced in June 2018 worth $7.5 billion. But GitLab will instead aim for the public markets, targeting an IPO or direct listing next fall, Sijbrandij said.

“We’d rather stay independent as a company,” he said. GitLab has set a tentative date of Nov. 18, 2020, but the CEO added that the startup will watch market conditions and that nothing is guaranteed.

The Series E funding round was led by ICONIQ Capital and Goldman Sachs. New investors include Adage Capital Management, Alkeon Capital and Two Sigma Ventures, among others.

GitLab has raised a total $426 million so far, including the new round.

Bloomberg News