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OpenHands secures $18.8M in Series A funding led by Madrona to enhance its cloud coding agent platform, aimed at improving software development for enterprises.

PRIVATENov 18, 2025•9 months ago

Amount Raised

$18.8 Million

Round Type

Series A

SomervilleInformation TechnologySoftware

Investors

Alumni VenturesFujitsu VenturesObvious VenturesMenlo VenturesMadrona

Description

OpenHands has successfully raised $18.8M in a Series A funding round led by Madrona, alongside participation from Menlo Ventures, Obvious Ventures, Fujitsu Ventures, and Alumni Ventures. The funding will be instrumental in advancing their secure, scalable cloud agent platform designed for modern software teams. OpenHands aims to provide open-source solutions that improve software development processes, integrating seamlessly with any large language model. The company has also partnered with AMD to optimize agent performance for enterprise readiness.

Company Information

Company

OpenHands

Location

Somerville, Massachusetts, United States

About

OpenHands is an open platform for cloud coding agents designed to enhance software development processes by enabling organizations to run and scale autonomous coding agents securely in their own cloud. It integrates with popular tools like GitHub, Slack, and Jira, facilitating the offloading of repetitive software development tasks. Unlike traditional agentic tools, OpenHands offers a model-agnostic approach, allowing flexibility and governance in enterprise environments. The company aims to make software development more open, human-centered, and efficient.

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Funding Insights

Based on industry data
Typical timeline to Series B
Series A companies typically raise their next round in 10-18 months
Monthly burn rate benchmark
47% of Series A startups spend $400k or more per month on operations
VC-backed spending patterns
VC-backed companies spend 89% more on sales and 100% more on marketing than bootstrapped peers
Tech investment trends
83% of B2B companies plan digital investments, with 79% prioritizing customer experience tech

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