Modal Raises $750 Million at a $15.75 Billion Valuation, Less Than Five Months After Its Series C

Modal, the AI cloud infrastructure company, said on October 14, 2026 that it raised $750 million at a $15.75 billion valuation, as reported by Tech Funding News. Accel led the round and Kleiner Perkins joined, along with all existing investors, including Menlo Ventures, General Catalyst, Redpoint, Lux Capital and Bain Capital Ventures.

The price is more than three times the $4.65 billion valuation set in its May 21 Series C, which raised $355 million and was led by General Catalyst and Redpoint.

The Numbers Behind the Round

Modal says usage has tripled since the Series C and grown more than 15 times year on year. Its annualised run rate has passed $1 billion. At $15.75 billion, the valuation is about 16 times that run rate.

The fastest-growing product is Sandboxes, which gives AI-written code an isolated place to run. Launched in 2023, it has reached a $300 million run rate, just under a third of the total, with close to 3 billion sandboxes launched. Customers include DoorDash, Cognition, Ramp and Linear.

How the Company Got Here

Erik Bernhardsson, a former Spotify engineer and ex-CTO of Better.com, founded Modal in 2021 and is chief executive. Co-founder Akshat Bubna, an early engineer at Scale AI, is chief technology officer. Modal pools capacity from more than 20 cloud providers into one network and does not run its own data centres. It has more than 200 staff across New York, San Francisco and Stockholm.

Modal was valued at $1.1 billion in September 2025, when it raised an $87 million Series B led by Lux Capital. The Series D is more than 14 times that figure in just over a year, and Modal has raised roughly $1.2 billion across its disclosed rounds.

A Crowded Race for Inference

Gartner forecasts $42 billion of spending on AI-optimised infrastructure-as-a-service in 2026, up 96%, with inference, the running of trained models, taking $23.3 billion of it. Rivals are raising at similar speed: Baseten closed a $1.5 billion round at $13 billion in June, and Fireworks AI raised $1.505 billion at $17.5 billion in July.

If AI agents keep writing code that needs a safe place to run, Sandboxes could carry more of Modal's valuation than GPU rental. If the large clouds or model makers build their own sandboxes, a multiple near 16 times run rate will be hard to defend.

What This Means for Founders

Modal's path shows how one product line can change a company's story. A product launched in 2023 now supplies about a third of revenue, and investors paid for that growth rate. If you are raising a Series B or later, show which product drives growth and how much of it comes from customers who expand usage.

Also note the pace. Three priced rounds in about 13 months, each at a much higher valuation, is rare. A founder raising from a lead investor in a hot category should plan for the opposite case too, and consider how a large round affects dilution and the bar for the next valuation.

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AngelLinx Intelligence | angellinx.ai