Harness Secures $200 Million, Valued at $5.5 Billion by Investors

Harness has raised $200 million in a financing round led by Goldman Sachs that values the San Francisco based software company at $5.5 billion, the firm announced on Thursday. The new valuation represents a 49 percent increase from the roughly $3.7 billion price tag set at its Series D nearly four years ago.

Alongside the financing, Harness said it will execute a $40 million tender offer that will give existing investors including IVP, Menlo Ventures and Unusual Ventures a chance to sell shares. The company said it was not actively seeking capital but that investor interest was strong, a sign of renewed enthusiasm in venture markets for firms focused on developer productivity and applied artificial intelligence.

Harness builds workflow AI tools designed to accelerate the path from code creation to production deployment. Customers named by the company include National Australia Bank, Morningstar and United Airlines. Harness said its tools shortened deployment times for some customers by about 75 percent, a performance gain that can translate into faster feature delivery, lower operational costs and tighter feedback cycles between engineering and users.

The company also stressed collaborative relationships with major model and cloud providers including Anthropic, OpenAI, Google Gemini and Amazon Web Services. Those partnerships reflect a broader industry trend in which infrastructure and tooling vendors integrate large language models and other generative systems into developer workflows, bundling model access with automation and monitoring features.

The financing and tender offer together underscore two dynamics in the current technology funding environment. Investors are again willing to place large bets on AI adjacent software that promises clear business outcomes, even as founders and employees seek liquidity without the disruption of a public offering. For venture investors, tender offers provide a path to realize gains while keeping companies private for longer.

The move also raises practical and ethical questions about rapid automation of software delivery. Faster deployments can improve responsiveness to customers and accelerate innovation, but they can also increase the speed at which bugs and vulnerabilities move into production if guardrails, testing and oversight do not keep pace. Integrating powerful language models into build and deployment pipelines introduces new vectors for errors and for the propagation of biased or unsafe code suggestions, challenges that both toolmakers and users must confront.

Harness did not provide detailed guidance on how it will allocate the new capital. For investors and customers, the round will be watched as a bellwether for the commercial momentum of AI enabled development platforms and for how quickly private markets will reprice software companies that tie artificial intelligence to measurable operational gains.