Modal Raises $750 Million at 15.75 Times Its $1 Billion Run Rate

Modal, a cloud company that runs AI workloads for DoorDash, Ramp and Linear, raised a $750 million Series D at a $15.75 billion post-money valuation, it said Oct. 14. Accel led and Kleiner Perkins joined. The valuation is 15.75 times the annualized run rate Modal says it has passed, $1 billion, and that figure is the company's own and unaudited.

Co-founder and chief executive Erik Bernhardsson announced the round in a post on Modal's blog. The post says all existing investors took part, among them Menlo Ventures, General Catalyst, Redpoint, Lux Capital, Amplify Partners and Bain Capital Ventures. It does not split the $750 million by investor and does not say how the money will be spent beyond building what comes next.

What the multiple says

Modal's previous round, a $355 million Series C at a $4.65 billion valuation in May according to The Next Web, is the baseline. The valuation has risen 3.4 times since, which is a little faster than the three-fold rise in usage that Bernhardsson reports for the same five months. The post also says revenue has grown more than 15 times in a year.

The round itself sells about 4.8 percent of the company at the post-money price, our arithmetic on $750 million over $15.75 billion. A multiple of 15.75 on current run rate is the number that will travel. Run rate multiplies one recent period, so it flatters a business growing at 15 times a year, and The post does not disclose gross margin.

Sandboxes are 30 percent of the run rate

The post says Modal's sandboxes, isolated environments where AI agents run code they have just written, are a $300 million run-rate product alone, with nearly 3 billion launched since 2023 and a ceiling of one million running at once. By our arithmetic that is 30 percent of the $1 billion total.

That is the market a bootstrapped Y Combinator company, Agent37, is pricing against at $4.94 a month for a small sandbox, according to its Launch HN post. Modal's rate card for the same shape comes to about $174 a month if left running. The two companies do not sell the same service, since Modal also sells GPUs, multi-node training and, per its post, a scheduler and container runtime it built itself over 20-plus clouds.

The post names these customers: TypeSafe AI, DoorDash, Cognition, Ramp, Linear, Hebbia, Suno, Runway, Physical Intelligence, Generalist AI, 1X, Chai Discovery and Achira. It says the company has more than 200 staff across New York, San Francisco and Stockholm.

How the week compared

Crunchbase News ranked Modal first among the week's largest rounds raised by U.S. companies, and wrote that investors "did scale back on giant rounds this past week." Only two financings were in the hundreds of millions of dollars.

Company	Round	Amount	Lead
Modal Labs	Series D	$750 million	Accel
Icon	Series D	$200 million	Baillie Gifford, BlackRock
Soufflé Therapeutics	Series B	$135 million	Juvia Group
Estuary Biotherapeutics	Series A plus seed	$103 million	RA Capital Management
Labelbox	Series E	$100 million	Infinitum Partners

1. Modal Labs750 USD millions
2. Icon200 USD millions
3. Soufflé Therapeutics135 USD millions
4. Estuary Biotherapeutics103 USD millions
5. Labelbox100 USD millions

Source: Crunchbase News weekly biggest rounds, accessed 2026-10-17

Modal alone was 3.75 times the second-largest round. Outside the U.S., RapidCanvas in India raised $29 million the same week, a Series B led by Vertex Ventures. The Terminal has also compared Indian third-quarter funding totals from different trackers.

What would test the number

The round is announced and described by Modal as raised. No filing was seen for this piece. The first outside check would be a secondary sale or a tender offer at the new price, and the post mentions neither.