Vercel could be on the verge of one of many greatest jumps in valuation the cloud sector has seen this yr. The San Francisco-based startup, identified for its developer-friendly “frontend cloud” platform and because the creator of Subsequent.js, has drawn investor curiosity that might push its valuation to $9 billion, in accordance with an unique report from The Data.
The brand new valuation is nearly thrice the $3.25 billion it reached simply over a yr in the past. The provide additionally underscores how a lot warmth stays in cloud infrastructure and developer tooling.
“Vercel, a nine-year-old cloud startup that firms use to host and develop web sites and synthetic intelligence apps, has been approached by buyers providing to speculate tons of of thousands and thousands of {dollars} at a valuation between $8 billion to $9 billion,” The Data reported.
Based in 2015 by Guillermo Rauch below the title ZEIT earlier than rebranding in 2020, Vercel constructed its status on making it simpler for builders to construct, deploy, and scale trendy internet functions. Subsequent.js, the open-source React framework it maintains, has change into a go-to for firms that need quick, scalable websites with out the trouble of heavy backend work. The platform plugs into main suppliers like AWS, including options resembling edge computing, serverless capabilities, and AI-driven interface instruments.
That AI push has been greater than a aspect challenge. Earlier this yr, Vercel’s v0 software—constructed to generate consumer interfaces from pure language prompts—took house a 2025 Webby Award for developer instruments. It’s half of a bigger technique that included acquisitions of Turborepo, Splitbee, Tremor, and, most lately, NuxtLabs in July 2025.
The enterprise mannequin blends usage-based pricing for infrastructure with paid subscription tiers: a $20 per seat Professional plan and customized Enterprise packages. That blend has landed Vercel within the candy spot of the “Jamstack” motion, powering static websites that may nonetheless ship customized experiences. Main manufacturers, together with Underneath Armour, The Washington Put up, Stripe, and Wayfair, are amongst its prospects.
By Could 2024, the corporate had crossed $100 million in annual recurring income, with greater than 1,000,000 builders utilizing Subsequent.js each month. Its progress has tracked the broader shift to cloud-native improvement and the rising function of AI in constructing software program, placing it in the identical dialog as Netlify, AWS, and newer AI-centric instruments like Bolt.new, and Lovable, which lately raised $200 million in Series A funding at a $1.8 billion valuation to scale its AI “vibe coding” platform.
From $3.25B to $9B: Vercel Attracts Large-Cash Gives in Cloud Providers Increase
Vercel has raised $563 million throughout 5 rounds, beginning with a $21 million Sequence A in 2020 led by Accel and CRV, adopted by a $40 million Sequence B that very same yr from Google Ventures. Sequence C introduced in $102 million in 2021 at a $1.1 billion valuation, led by Bedrock and Tiger World, adopted by a $150 million Sequence D later that yr, valuing the corporate at $2.5 billion. The latest increase, a $250 million Sequence E in Could 2024, pushed the determine to $3.25 billion.
The brand new investor curiosity—particulars of which stay below wraps—may mark the corporate’s subsequent main leap. Whether or not the talks result in recent funding, an acquisition bid, or secondary share gross sales continues to be unclear. However the quantity alone indicators robust market confidence in Vercel’s function as a bridge between builders and the huge, generally overwhelming, uncooked sources of the cloud. As Rauch as soon as put it, these sources with out the fitting instruments are “a bag of three,000 Legos.”
The timing suits a broader resurgence in tech valuations this yr, with enterprise AI and cloud instruments drawing giant checks once more. In April, for instance, Supabase, one other developer-focused platform, raised $200 million at a $2 billion valuation.
If Vercel takes the deal, the additional capital may gas extra AI-driven options and strengthen its enterprise safety choices—each hinted at in earlier bulletins. An IPO isn’t off the desk both. The problem can be to maintain tempo with cloud giants whereas persevering with to nurture the open-source communities which have helped energy its rise.
For now, all eyes are on whether or not the corporate strikes ahead and locks in a valuation that may cement it as one of the vital worthwhile non-public gamers in cloud improvement.
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