Codified’s Journey Comes to a Close as Founder Moves to Google
In a recent development from the Seattle tech scene, AI data governance startup Codified is shutting down operations, according to founder and former CEO Yatharth Gupta. The announcement marks the end of a relatively short but promising journey for the young company that had aimed to revolutionize how businesses manage data access in AI systems. While Gupta confirmed the “winding down” of Codified to GeekWire, he provided no additional details about the circumstances leading to this decision or what might happen to the company’s technology and intellectual property. The closure comes less than a year after the company secured significant seed funding, highlighting the volatile nature of the startup ecosystem even for well-backed ventures.
The company’s closure coincides with Gupta’s career transition to Google, where he has taken a position as director of product management at their Kirkland, Washington office. Gupta announced this career move on LinkedIn last week with an optimistic message: “New beginnings! & also I’m hiring!” This career shift represents a return to big tech for Gupta, who previously spent over 14 years at Microsoft where he led various Azure data access and management projects before founding Codified. His extensive background in data management likely made him an attractive hire for Google, which continues to expand its own AI and data governance capabilities in the increasingly competitive tech landscape.
Codified emerged from Madrona Venture Labs in 2023 with a compelling vision for simplifying data governance through artificial intelligence. The startup developed what it described as an “end-to-end data governance operating system” that leveraged generative AI to transform data access management. What made their approach particularly innovative was the ability for users to create complex data access rules by simply writing policies in plain English, eliminating the need for specialized coding knowledge. This democratization of data governance aimed to address a critical pain point for many organizations struggling to efficiently manage who can access specific data, for what purposes, and for how long—especially important considerations as AI systems become more deeply integrated into business operations.
The startup’s potential had attracted substantial financial backing just months before its closure. In February 2024, Codified secured a $4 million seed round led by Madrona Venture Group and Vine Ventures, with additional participation from Soma Capital. The investment round also featured notable individual investors, including former Snowflake CEO Bob Muglia, SAP executive and former Microsoft VP JG Chirapurath, and Microsoft Vice President of Databases Shireesh Thota. This impressive roster of backers underscored the perceived value and market potential of Codified’s approach to data governance—making the company’s quick demise all the more surprising to industry observers who had witnessed its promising start.
Beyond Gupta, Codified had assembled a team with impressive credentials in the data management space. Key executives included Stefan Batres, who had previously served as director of engineering at Tableau Software and has since moved to Atlan following Codified’s closure. Another notable team member was Karan Thakker, former senior software engineer at both ExtraHop and Alation, who has reportedly returned to ExtraHop. The movement of this talent following the startup’s closure reflects the continued high demand for experienced data professionals across the tech industry, with team members quickly finding positions at other innovative companies despite the setback of Codified’s shutdown.
While the specific reasons for Codified’s closure remain undisclosed, the company’s story reflects broader trends and challenges in the competitive AI startup landscape. As organizations increasingly adopt artificial intelligence technologies, data governance has become a critical concern, particularly regarding security, privacy, and regulatory compliance. Codified had positioned itself to address these exact challenges, yet still faced difficulties in establishing a sustainable business. This outcome highlights the complex reality for startups in the AI space: despite addressing real market needs with innovative solutions and securing significant funding, the path to success remains uncertain. As Gupta embarks on his new role at Google and the rest of the team disperses to other companies, the intellectual legacy of Codified’s approach to AI data governance may continue to influence how the industry approaches these critical challenges, even if the company itself has reached the end of its journey.
