This Vercel company profile covers the company's valuation, revenue, funding rounds, investors and history. Vercel works in developer tools, with a focus on cloud platform for web and AI apps. It was founded in 2015 and is headquartered in San Francisco, California, United States. Its latest valuation on record is US$9.3 billion (September 2025). Every figure links to a public source, and anything the company hasn't disclosed is marked as such.
Revenue
US$340 million annualized run-rate revenue, up 86% year over year — Run-rate revenue (company figure reported by Forbes), as of End of February 2026. Source: Yahoo Finance.
| Metric | Value | As of | Source |
|---|---|---|---|
| Apps deployed by AI agents | About 30% of apps running on the platform came from agents, according to CEO Guillermo Rauch | April 2026 | Yahoo Finance |
Funding history
| Date | Round | Amount | Valuation | Investors | Source |
|---|---|---|---|---|---|
| Sep 2025 | Series F (plus secondary tender) | US$300M | US$9.3B | Accel and GIC (co-leads) | Business Wire |
| 2024 | Series E | See source | US$3.25B | See source | Business Wire |
Vercel timeline
Key dates from the sources on this page, oldest first. Metric snapshots are listed after the funding events.
- 2015 — Vercel is founded in San Francisco by Guillermo Rauch (CEO).
- 2024 — Series E: See source, valuing the company at US$3.25B.
- Sep 2025 — Series F (plus secondary tender): US$300M, valuing the company at US$9.3B. Investors: Accel and GIC (co-leads).
- April 2026 — Apps deployed by AI agents: About 30% of apps running on the platform came from agents, according to CEO Guillermo Rauch.
Investors
Overview
Vercel is a cloud platform that developers use to build, deploy and run websites and web applications. A developer connects their code repository, and Vercel builds the site, distributes it across a global network and scales it automatically as traffic changes. Vercel also created and maintains Next.js, one of the most widely used frameworks for building React web applications, and it makes v0, an AI tool that turns plain-language descriptions into working apps.
Guillermo Rauch founded the company in 2015 under the name ZEIT, renaming it Vercel in 2020. Rauch, who grew up in Argentina, was already well known in the developer world as the creator of open-source projects such as Socket.io. Vercel is based in San Francisco, with a largely remote team.
What Vercel does
- Hosting and deployment: every code change can create a preview version of a site, and going live takes a single step. Vercel handles servers, caching and scaling.
- Next.js: the open-source framework is free to use anywhere, but works especially smoothly on Vercel, which brings many developers to its platform.
- v0: an AI app builder, part of the "vibe coding" trend, where users describe what they want and the AI writes the code.
- AI SDK and AI Cloud: tools and infrastructure for developers building AI features into their own apps.
How Vercel makes money
Vercel offers a free Hobby plan for personal projects, a per-seat Pro plan for professionals and teams, and Enterprise contracts for large companies. On top of the base price, customers pay for usage such as bandwidth, compute time and AI features. As customers' websites and apps get more traffic, they pay more, which gives Vercel revenue that grows with its customers. Large enterprises, including well-known retailers and media companies, account for a significant share of revenue.
Revenue growth
Vercel has been fairly open about its growth. According to Forbes, as reported by Yahoo Finance, its run-rate revenue reached US$340 million at the end of February 2026, up 86% year over year. The Information had reported about US$100 million at the start of 2024, so revenue roughly tripled in about two years. Run-rate revenue is an annualized snapshot, not audited annual revenue, but the trend is clear. Much of the recent acceleration is linked to AI: Rauch said about 30% of apps on the platform now come from AI agents, which he described as "very prolific at deploying".
Funding history
Vercel has raised money from leading venture firms as it grew:
- 2024, Series E: valued Vercel at US$3.25 billion.
- September 2025, Series F: US$300 million at a US$9.3 billion valuation, co-led by Accel and GIC, nearly tripling its valuation. The round included a tender offer that let existing shareholders and employees sell some shares.
Vercel said it would use the Series F money to expand its AI Cloud and grow its products for AI developers.
Competitive landscape
Vercel competes with the large cloud providers, especially Amazon Web Services, with Cloudflare, with Netlify and other front-end hosting platforms, and with AI app builders such as Lovable, Replit and Bolt. Its advantages are its ownership of Next.js, a polished developer experience, and an early lead in AI development tools. Its challenges include the cost of running infrastructure on top of other clouds, which affects gross margins, and criticism from some developers that Next.js is too closely tied to Vercel's commercial interests.
The IPO question
Rauch has said the company is "ready and getting more ready" for an IPO but hasn't given a timeline. In 2026, a sell-off in software stocks linked to fears about AI disruption made public markets less welcoming for software listings, which may delay plans. Vercel's fast growth and AI exposure would make it one of the more closely watched developer-tool IPOs.
What to watch next
Watch revenue milestones, the growth of v0 and AI agent deployments, gross margin as AI usage rises, enterprise customer wins, any new funding round, and IPO timing.
Key facts at a glance
Vercel is a San Francisco cloud and developer platform founded in 2015 by Guillermo Rauch. It created Next.js and the AI app builder v0. It raised a US$300 million Series F at a US$9.3 billion valuation in September 2025, co-led by Accel and GIC, and reported run-rate revenue of US$340 million at the end of February 2026, up 86%.
Open source as a growth engine
Vercel's business is a good example of commercial open source. Next.js is free, and millions of developers use it whether or not they pay Vercel. But because Vercel builds the framework, its platform supports new Next.js features first and best. Developers learn Next.js, start projects on Vercel's free plan, and when those projects grow into businesses, they upgrade. The open-source project works like a marketing channel that also builds goodwill. The risk is balancing community trust with commercial goals; if developers feel the framework favours one host too much, they may choose alternatives.
Usage-based pricing: pros and cons
Usage-based pricing lets small customers start cheaply and pay more as they grow, which is attractive for a platform used by startups. It also means revenue rises automatically when customers succeed. On the downside, revenue can fall if customers optimise their usage or if traffic drops, and unexpected bills can upset customers. For investors, usage-based companies often show strong net revenue retention in good times but more volatility in a downturn.
Why AI agents matter for hosting
When AI tools can generate and deploy apps in minutes, the number of apps being created rises dramatically. Many are small experiments, but each one needs somewhere to run. Platforms that make deployment instant and cheap, and that AI coding tools integrate with by default, stand to benefit. That's the bet behind Vercel's AI Cloud strategy and the reason its revenue growth accelerated as AI coding took off.
What this means if you're…
A development team: compare hosting platforms on total cost at your expected traffic, build speed, framework support and how easily you could move elsewhere.
A founder building developer tools: Vercel shows how an open-source project can create a large commercial business.
An investor: compare Vercel's valuation with its run-rate revenue and growth, and watch gross margins as AI workloads grow.
Latest developments (October 2026)
Vercel's September 2025 Series F, co-led by Accel and GIC at US$9.3 billion, remains its latest priced round, followed by a secondary tender offer of about US$300 million in November 2025, according to Komo. Its v0 app builder and AI SDK have tied it closely to AI application development. Chief executive Guillermo Rauch has said IPO timing remains uncertain. See our developer tools guide.
Sources
Every figure on this page comes from the public sources below. Where sources disagreed, we used the company's own announcement or a primary news report. Private-company data changes; check the date beside each figure.
Frequently asked questions
What does Vercel do?
Vercel is a developer tools / cloud platform for web and ai apps company headquartered in San Francisco, California, United States. It was founded in 2015.
What is Vercel's valuation?
Vercel was valued at US$9.3 billion as of September 2025, according to Business Wire. Private company valuations are set at funding rounds or share sales and can change significantly between them.
How much revenue does Vercel make?
Vercel reported US$340 million annualized run-rate revenue, up 86% year over year (run-rate revenue (company figure reported by forbes)) as of End of February 2026, according to Yahoo Finance.
What was Vercel's latest funding round?
The most recent financing we have verified is a series f (plus secondary tender) in Sep 2025: US$300M, at a valuation of US$9.3B. Source: Business Wire.
Who are Vercel's investors?
Investors named in public announcements include Accel and GIC.
Who founded Vercel?
Vercel was founded in 2015 by Guillermo Rauch (CEO).
Is Vercel a public company?
No. Vercel is a private company (private, venture backed), so its shares are not traded on a stock exchange and it isn't required to publish its financial results.
Where is Vercel headquartered?
Vercel is headquartered in San Francisco, California, United States.