Linear has completed a $99 million tender offer that allowed current and former employees to sell a portion of their vested equity at a $2.5 billion company valuation. Existing investors Accel and 01A participated alongside new investors Salesforce Ventures and S32.
The transaction doubled Linear’s valuation from the $1.25 billion level established through its previous tender offer, which took place alongside its Series C financing in 2025.
Rather than raising another primary financing round, Linear opted to provide liquidity directly to employees and former employees.
The company said it is cash-flow positive and currently holds more cash than the total amount of primary capital it has raised historically.
Management concluded that raising additional capital without a specific need would unnecessarily dilute employees and existing shareholders.
The tender comes as Linear reaches several major growth milestones.
The company surpassed $100 million in annual recurring revenue earlier in 2026 and now has more than 40,000 paying business customers.
Net revenue retention has reached 177%, indicating substantial expansion among existing customers.
Enterprise adoption is also increasing.
Salesforce and Figma became customers earlier this year, while AI companies including OpenAI, Cursor, Cognition, Harvey, Physical Intelligence, Legora and Baseten use Linear for product development.
AI agents are increasingly becoming part of how customers use Linear.
Agents are installed in 95% of paid workspaces, and the share of work created by agents has increased from 3% a year ago to 50%.
Since the beginning of 2026, issues with attached pull requests from engineering, product or design users have increased sevenfold.
Linear is developing additional functionality around agent-driven product development through products including Coding Sessions and Loops.
Ramp and Coinbase have also built integrations that connect custom coding agents to Linear.
The company plans to continue expanding its team and has more than 30 open roles across engineering, product, design, sales and support.
Through its Linear Infinity employee program, the company also offers equity refresh grants and paid extended time off tied to employee tenure.
KEY QUOTE:
“We are cashflow positive, and have more cash in the bank than everything we have raised to date. Raising more primary capital would have meant diluting the team and our shareholders without a clear reason; so we chose a different path.”
Karri Saarinen, Co-Founder And CEO Of Linear
