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Cloud coding startup Codesphere closes $18M to reduce infrastructure cost

When VMware, one of the world’s largest cloud providers, changed its license model at the beginning of the year and significantly increased its prices, international companies turned their attention to Karlsruhe, Germany, where Codesphere is based. 

Codesphere, which enables developers to program and scale complex applications directly in the cloud, has secured $18 million in funding. Pan-European VC Creandum (invested in Packfleet and Embat) led the investment round with existing investors including LEA Partners, Begin Capital, 42CAP, and 468 also participating. 

With this round, the German startup’s total funding amount accounts for $26.5 million to date. This new capital injection will allow the company to expand its services further, including developing new solutions to manage the cost efficiency of large language models (LLMs) and improve collaboration within development teams.

Simplifies building and running web apps 

Founded by Elias Schneider, Jonas Zipprick, and Roman Frolov in 2020, Codesphere enables individuals and organisations to code directly in the cloud and scale applications globally. This helps developers witness a reduction in infrastructure costs and makes the development process self-service.

As a leading Platform-as-a-Service solution, the team of former Google developers recently started offering its services called – air-gapped and on-prem for companies. With these services, companies can use their applications without an internet connection and have the option of hosting on their own servers, particularly important for critical infrastructure. 

Already, Codesphere is working with companies like Staatsbank Baden-Württemberg (L-bank),, Arkane, Gigabyte / Arkane, and Eurotours to name a few.

“Our technology allows developers to focus 100% on feature creation, which not only increases efficiency but also saves significant labor costs,” said Elias Schneider, CEO of Codesphere.

Carl Fritjofsson, GP at Creandum added: “Codesphere is one of those incredible opportunities with almost unlimited upside. It caters to traditional enterprises looking for cost-effective ways to modernize their IT stack and development processes, to modern software companies looking for scalability, as well as personal hobby developers in need of simplicity and speed.”

One of Codesphere’s new customers is Staatsbank Baden-Württemberg (L-Bank). Nino Messaoud, CIO of L-Bank, commented on the collaboration said: “Codesphere’s integration is part of our transformation strategy, accelerating our goal to become the most digital development bank in Europe.” Other customers include, Arkane, Gigabyte and Eurotours.

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