Coverity Gets $22M to Keep Code Clean

Glitchy software isn’t just annoying, as more and more objects get electronic brains in the form of chips, it can be deadly. Automatic drug injection patches to the steering systems on advanced cars are powered by semiconductors that rely on software to tell them what to do and when. That’s why Coverity expects to make between $25 million and $30 million in 2008 selling software that spots potentially bad code during programming.

The five-year-old San Francisco-based startup has raised $22 million to expand beyond its core source code analysis product. The money, from Foundation Capital and Benchmark Capital, will allow Coverity to start selling its more than 400 customers products, which help developers reduce the mistakes made during the software coding and architect process.

Coverity CEO Seth Hallem tells me the products will compliment existing application lifecycle management products from Mercury Interactive and Rational Software (bought by H-P and IBM respectively). So far, the company’s discipline in waiting to take venture capital is unusual and is certainly responsible for its decision to sell its software not as a service, but in an old-school package. Hopefully its decision to let the venture guys in will help it continue its impressive growth.