(Reuters) – Web development software startup Vercel has doubled its valuation to $2.5 billion after raising $150 million in its latest funding round.
The San Francisco-based company said on Tuesday the fundraise was led by GGV Capital, while Accel, Tiger Global, and Salesforce Ventures also participated in the round.
The fresh funds come five months after the operator of a front-end stack for web developers gained a valuation https://vercel.com/blog/series-c-102m-continue-building-the-next-web of more than $1 billion in its previous fundraising. It has raised $313 million in total.
Strong investor interest in technology and software companies has helped the sector’s startups in securing high valuations this year.
ActiveCampaign, a cloud software platform, raised funds at a $3 billion valuation earlier this year and automation software Workato was valued at $5.7 billion in a fundraise this month.
Vercel’s Next.js – an open-source framework for web development that the company created with Alphabet Inc-owned Google and Facebook Inc – is used by websites such as TikTok, Hulu and TripAdvisor.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Aditya Soni)
