Zed Industries has raised $32 million in Series B funding, led by Sequoia Capital, bringing its total funding to over $42 million. The new funds will help enhance real-time collaboration between developers and AI agents within the code.
Zed focuses on capturing ongoing discussions tied directly to the code, unlike Git, which often isolates developers between commits. It uses conflict-free replicated data types (CRDTs) for character-level linking.
Built from scratch for collaboration, Zed incorporates a fast Rust codebase and a GPU-accelerated UI framework called GPUI. Since becoming open-source in 2024, Zed has experienced rapid growth, now boasting 1,100 contributors and over 150,000 active developers.
KEY QUOTES:
“We’re building fundamentally better primitives for collaborative coding, which will allow conversations with teammates and agents to take place directly within the IDE. By durably linking conversations to specific sections of the code via character-level permalinks, we can transform codebases into multi-dimensional sources of context explaining how any line of code came to be.”
Nathan Sobo, CEO and co-founder of Zed
“The future of software development is collaboration – both with other humans and AI agents – and Zed is pioneering the infrastructure to make that vision reality. Their approach to contextual coding represents a fundamental shift in how developers will work with AI agents, and we’re excited to support their mission to transform the development experience.”
Sonya Huang, Partner at Sequoia Capital
