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Coding Tools Startup Landscape Report



Introduction:


The computer world is run on codes. From machine language to high level languages, programmers have been able to manipulate the computer into meeting our daily needs. This has led to the advancement of most sectors that have integrated technology to their work flow. Coding has been made easier with coding tools as new and inexperienced people can now learn how to manipulate the language of the computer to meet daily needs.


As we know that in modern times, there are lots of applications, OS, games in the ecosystem and this has increased the need for programmers and the tools that they need to bring these techy innovations to the world. Coding companies and their subsectors are discussed in this article along with the problems faced by the sector.


Situation:


The open source environment is open to collaboration and sharing of codes and while writing software code, numerous coding tools are used along with the programming language to simplify the tasks of writing the software code. Sometimes because of the numerous programming languages, a single coding tool might not be used but in most cases they can. Generally, coding tools comprises text editors, supporting tools for a specific programming language, and the framework required to run the software code.


Problem and Implication:


The problems faced by coders/programmers include:


Understanding User Requirements: This is a problem faced by all software engineers. User’s description of their needs can sometimes be too out of reach for programmers to implement. Narrowing down these needs to a conclusive application can be tough sometimes and that is why it can take a long time to actually come up with worthy applications.


Bad work environment and work load: Yes, some programmers complain of a crappy work environment. And usually this can lead to the inefficiency among employees of the organization. The work load that most coders have to deal with can cause a strain their working codes. The pressure to make sure that systems don’t crash usually puts them at a bad edge.


Communication: Communication problems can cause delay in project work and this dwindles the business importance of coders and the companies that they work for. Most of the problems that coders face can be boiled down to this. Improper communication usually leads to negative reviews from customers as they feel that their needs aren’t met the way they intended.


Resource availability and Utilization: There is a problem of having enough technical resources as well as having the right people to deliver the project. This is a common struggle in the industry.


Need Payoff:


650+ companies in the sector, 109 funded in last 5 years, $223M invested in 2016/2017 YTD. The most active investors are: Y Combinator, Accel, 500 Startups, Intel Capital, CrunchFund. The sectors are:


Code Management: Tools that help developers in maintaining source code, improving developer productivity and code quality. With 181 companies founded in the last 8 years and an overall funding amount of $574M.


The subdivisions here are:

  • Productivity: Tools that help enhance developer productivity.

  • Code Quality: Tools that help developers in improving the quality of code.

  • Source Code Management: Tools that help developers in managing the source code from committing to collaboration.

  • Package Manager: Tools that automate the process of installing, upgrading, configuring, and removing computer programs.

  • Licensing: Tools that help developers in finding out copyright issues and licenses with respect to code.


Code Development: Tools that provide visual, textual development environments along with code generation and code visualization tools. There have been 270 companies founded in the past 8 years with an overall investment of $608M.


The subdivisions here are:

  • IDE: Tools that provide comprehensive facilities to computer programmers for software development typically consisting of a code editor, a compiler, a debugger, and a graphical user interface (GUI) builder.

  • Visual Development: Tools that help developers to create applications without coding.

  • Crowd Sourced: Companies that offer crowd sourced platform or services for development of software applications.

  • Development Types: Tools that support a method of developing software application.

  • Code Generation: Tools that help developers in generating code or converting code from one language to another.


Marketplaces: Companies providing marketplaces for scripts, source code, SDKs etc. From the year 2010 to the year 2015, there have been over 10 companies founded with an overall investment of $4M.


The subsectors are:

  • Source Code: Companies providing platforms to buy and sell source code or scripts.

  • Algorithms: Companies providing marketplaces for algorithms.

  • Development: Companies providing marketplaces for development.

  • Micro Services: Companies providing platforms to buy and sell micro services.

  • Mobile App Components: Companies providing platforms to buy and sell mobile app components.


Some Interesting Companies are:

  • GitHub (2008, San Francisco) Online community for collaborative coding with major investors like Andreessen Horowitz, Sequoia Capital, Thrive Capital, Institutional Venture Partners, TrueBridge Capital Partners, Internet Initiatives Development Fund, with an investment amount of $350M.

  • Azul Systems (2002, Sunnyvale): They produce high performance JVMs. Their major investors are: Accel Partners, Redpoint Ventures, Credit Suisse, Presidio Ventures, Meritech Capital, Austin Ventures, Worldview Technology Partners, and Partners for Growth. With an overall funding amount of $172M.


Conclusion:


Coding tools are making the world a better place. Day by day more people are learning how to code and manipulate the computer world bringing a lot of innovation to the world. This wasn’t always the trend but this sector is bringing these tools to the internet and have been able to secure a good place in most sectors including business, construction, and medicine sector etc. It is said that without codes, the world would crash thus investing in the tools that help generate, manipulate and use codes is sure to be a profitable business.


References:

  1. The WWW.

  2. Traxcn Report.

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