Cline
+58%
est. 2Y upside i
Autonomous coding agent right in your IDE, capable of creating/editing files, executing commands, using the browser, and more with your permission every step of the way.
Rank
#1445
Sector
Developer Tools
Est. Liquidity
~5Y
Data Quality
Data: MediumCline is a genuinely high-risk opportunity: the 22x ARR entry multiple ($110M on $5M ARR), a 29.1% preference stack from $32M in funding, and a confirmed February 2026 supply chain attack combine to produce a 50% bear-scenario probability where common equity could be wiped out entirely.
Last updated: May 14, 2026
Cline recovers from its security incidents, becomes the default enterprise open-source AI coding agent, and scales to ~$35M ARR by 2028 — a 7x increase from the $5M baseline. At a 20x ARR multiple consistent with high-growth developer-tools comps, the company reaches a ~$700M valuation, implying roughly a 5.4x gross return on equity priced at the $110M Series A.
Cline grows steadily to ~$18M ARR by 2028 but faces meaningful share erosion from GitHub Copilot, Amazon Q, and Google Gemini Code Assist, compressing exit multiples to ~10x ARR. This supports a ~$180M valuation — roughly 1.6x the $110M entry — yielding modest positive gross returns before accounting for dilution from an expected Series B.
The February 2026 OpenClaw supply chain attack causes sustained enterprise churn and reputational damage, stalling growth near $7M ARR as security-sensitive buyers at SAP, Samsung, and Fortune 100 accounts pause deployments. A distressed acquisition or down-round values the company at ~$30M, and after $32M in liquidation preferences absorb all proceeds, common stockholders recover approximately zero — representing a ~72% loss on entry valuation.
Preference Stack Risk
highFunding Intensity
2910%$32M in total funding sits ahead of common equity on a $110M valuation (29.1% preference ratio, near the severe threshold of 30%); any exit below ~$32M returns nothing to common, and exits below ~$80M return substantially less than face value after standard 1x non-participating liquidation preferences are satisfied.
Dilution Risk
highAt $5M ARR with 11 employees, Cline will almost certainly require a Series B and likely a Series C to reach exit scale, with each round expected to dilute existing common holders by an estimated 15–25%, compounding the discount on current grants.
Secondary Liquidity
noneNo secondary market activity is evident for a Series A company with only $32M raised; employees should assume equity is fully illiquid for at least 4–6 years absent a strategic acquisition.
Other — 6 roles
- Enterprise Account Executive · San Francisco
- Product Manager · San Francisco
- Senior Frontend Engineer · San Francisco
- +3 more →
Last updated: March 10, 2026
Questions to Ask at the Interview
Strategic questions based on Cline's data — designed to show you've done your homework.
- 1
“Following the February 2026 OpenClaw supply chain attack on Cline CLI 2.3.0, what specific architectural changes and third-party security audits have been completed, and what was the measured impact on enterprise customer retention and new pipeline conversion?”
- 2
“Cline's model passes AI inference costs through to customers without markup — what is the sustainable long-term pricing strategy for Cline Teams, and what ARR milestone and headcount plan supports a Series B raise and at what target valuation?”
- 3
“What is the full liquidation preference structure across the $32M in total funding — are there participating preferred provisions — and does the company have any plans for employee secondary liquidity programs or tender offers in the next 18–24 months?”
Community
Valuation Sentiment
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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.