With AI coding tools now producing billions of lines of code monthly, a new challenge is coming to the forefront: guaranteeing that software functions correctly. Qodo, a startup developing AI agents for code review, testing, and governance, believes verification will characterize the next era of software development.

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The New York-based company has secured a $70 million Series B investment led by Qumra Capital, raising its total funding to $120 million. The round also included participation from Maor Ventures, Phoenix Venture Partners, S Ventures, Square Peg, Susa Ventures, TLV Partners, Vine Ventures, Peter Welender of OpenAI, and Clara Shih of Meta.

Qodo aims to act as a dedicated layer for enhancing trust in AI-generated code as businesses rapidly adopt tools like OpenClaw and Claude Code. Many organizations are learning that increased code output does not automatically mean more reliable or secure software. While most AI review tools concentrate on what has changed, Qodo analyzes how code changes impact entire systems. It incorporates organizational standards, historical context, and risk tolerance to help companies manage AI-generated code with greater confidence.

The company was founded in 2022 by Itamar Friedman, who previously co-founded Visualead and led the machine vision business at Alibaba following its acquisition of Visualead. His experience at Mellanox, automating hardware verification with machine learning, led him to recognize that "generating systems and verifying systems require very different approaches (different tools, different thinking)." Later, at Alibaba’s Damo Academy, he observed AI advancing toward systems capable of reasoning with human language.

By 2021-2022, just before GPT-3.5, it became evident to him that AI would produce a significant portion of the world's content—especially code—solidifying his belief that code generation and verification would need fundamentally different systems.

A recent survey underscores a critical gap: while 95% of developers do not fully trust AI-generated code, only 48% consistently review it before committing. "Code generation companies are largely built around LLMs. But for code quality and governance, LLMs alone aren’t enough," Friedman stated. "Quality is subjective. It depends on organizational standards, past decisions, and tribal knowledge. An LLM can’t fully understand that context. It’s like taking a great engineer from one company and asking them to review code at another - they lack the internal context."

Friedman explained that while companies like OpenAI and Anthropic influence the broader AI narrative, including adjacent areas like code review, they are primarily focused on building features rather than comprehensive end-to-end solutions. He noted that although other startups exist in this space, many remain in early stages and have not yet achieved widespread enterprise adoption.

To distinguish itself in a competitive market, Qodo is emphasizing performance. The startup recently ranked first on Martian’s Code Review Bench with a score of 64.3%—more than 10 points ahead of the next competitor and 25 points ahead of Claude Code Review. This benchmark demonstrates its ability to identify complex logic bugs and cross-file issues without inundating developers with false positives.

Over the past month, Qodo launched Qodo 2.0, a multi-agent code review system that now leads current benchmarks, and introduced tools that learn each organization's specific definition of code quality. The company is already collaborating with major enterprises including NVIDIA, Walmart, Red Hat, Intuit, and Texas Instruments, as well as high-growth firms like Monday.com and JFrog.

"Every year has had a defining moment—from Copilot to ChatGPT to full task automation," Friedman said. "Now we’re entering a new phase: moving from stateless AI to stateful systems—from intelligence to 'artificial wisdom.' That’s what Qodo is built for."