Relace Secures $23M to Develop AI Coding Tools

October 08, 2025
Relace, a San Francisco-based startup, has raised $23 million in funding led by Andreessen Horowitz to develop tools for AI coding agents, according to The Information.

Andreessen Horowitz has led a $23 million funding round for Relace, a startup focused on creating tools for AI coding agents, according to The Information. The funding round also saw participation from Matrix Partners and Y Combinator.

Relace is developing specialized AI models that assist coding agents in integrating and managing code more efficiently. These models include tools for merging AI-generated code into existing codebases and identifying useful code snippets for new tasks. The startup aims to provide AI agents with a development environment similar to what human engineers use, but optimized for machine use.

The company, founded by Preston Zhou and Eitan Borgnia, plans to use the new capital to expand its engineering team and enhance its suite of models. Relace's tools are already in use by companies like Lovable and Figma, positioning the startup as a key player in the evolving landscape of AI-driven software development.

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