Kilo Code Secures $8 Million to Compete in Vibe Coding Market

Kilo Code, a startup co-founded by Sid Sijbrandij, former CEO of GitLab, has raised $8 million in seed funding to develop its artificial intelligence-driven coding tools. The funding round was backed by notable investors including Breakers, Cota Capital, General Catalyst, Quiet Capital, and Tokyo Black. The startup aims to enhance software development efficiency through a practice known as vibe coding, which utilizes large language models to assist developers in writing and updating code.

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Sijbrandij, who stepped down from his CEO role at GitLab last year to focus on cancer treatment, remains actively involved as the board chair. He was inspired to explore AI's potential in software development after observing its growing adoption in the tech industry, particularly at companies like Microsoft, where vibe coding reportedly constitutes 30% of their coding efforts.

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Kilo Code's software integrates with popular coding applications such as Cursor and Microsoft’s Visual Studio Code. The startup has already processed over 3 trillion tokens in the past month, indicating significant usage among developers. Daniël Langezaal, a software engineer at Dutch e-commerce startup Plug&Pay, noted that Kilo Code has become integral to their development process, with 80% of their developers utilizing the tool. Langezaal highlighted the efficiency gains, stating that a complex SQL query that would typically take days to implement was completed in just one day with Kilo Code.

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GitLab has taken notice of Kilo Code's developments, with Sijbrandij confirming discussions with GitLab's board regarding the startup's potential. GitLab has also established a financial relationship with Kilo, paying $1,000 for a right of first refusal on any acquisition proposals for the startup until August 2026. This strategic positioning reflects GitLab's interest in the evolving landscape of AI-assisted coding tools.

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As the market for vibe coding continues to expand, Kilo Code plans to broaden its offerings to cater to less technical users. Sijbrandij mentioned that the startup is developing an app builder aimed at beginners, inspired by successful models like Lovable and Bolt. This move aligns with the trend of making coding more accessible to a wider audience, as seen with other companies in the space.

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Despite the enthusiasm surrounding Kilo Code, some industry observers express skepticism about the sustainability of the vibe coding trend. Critics argue that reliance on AI for coding may lead to a decline in traditional programming skills among developers, potentially impacting the quality and reliability of software development in the long run.

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• “If he didn't have access to Kilo, it would have taken him a few days to implement.” — Daniël Langezaal, Software Engineer at Plug&Pay

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• “We also want to be the place for people just getting started with code,” — Sid Sijbrandij, Co-founder of Kilo Code

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Kilo Code's entry into the vibe coding market, backed by significant funding and a strong founding team, positions it as a notable player in the rapidly evolving landscape of AI-assisted software development.

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