Stephen Haney (@stephenhaney), founder and CEO of Paper, said Thursday in a thread on X that the design software startup raised a $34 million Series A co-led by Accel and ICONIQ.
The financing brings Paper's reported total funding to $38.5 million. That figure is $300,000 higher than the combined value of the $34 million Series A and Paper's previously announced $4.2 million seed round, which Accel led in February 2025. Paper did not break out the remaining capital.
New investors include Designer Fund (@designerfund), Michael Grinich (@grinich), Anton Osika (@antonosika) and unnamed engineers and designers from Anthropic and OpenAI, according to Paper. Basecase, David Hoang and Vercel CEO Guillermo Rauch renewed their support. Paper did not disclose a valuation. The round gives Haney a large pool of capital to pursue a specific change in how software teams work: coding agents are producing interfaces faster, while designers remain anchored to canvases that require their work to be translated into production code. Paper's answer is a professional design environment rendered with HTML and CSS, allowing agents to read and modify the same objects that designers manipulate visually.
Haney returns to the design-code divide
Paper is Haney's second attempt to narrow the distance between designers and engineers. He co-founded Modulz with Colm Tuite in 2018 to work on the same problem, producing the Radix UI component library and the Stitches styling library. WorkOS acquired Modulz in 2022, and Haney later led product engineering at WorkOS and worked on its AuthKit authentication product, according to his personal site.
That history is central to Paper's pitch. Haney has spent years building tools that turn design decisions into components developers can use. With Paper, he is extending the interface to coding agents including Claude Code, Codex, Cursor and Copilot.
The Paper Desktop application runs an MCP server that lets connected agents read and write design files. Paper's MCP documentation describes tools for creating artboards, writing HTML, editing styles, moving layers and exporting assets. Designers can also pull tokens and components from a codebase into a canvas, then send changes back through the agent workflow.
Paper's choice of HTML and CSS is the underlying technical bet. Most design software stores work in an internal representation that must be interpreted or converted before it becomes a production interface. Paper says web-native objects give large language models a structure they already understand, reducing translation between the canvas and the codebase.
A fast revenue claim with a missing denominator
In its Series A announcement, Paper said annual recurring revenue increased 25-fold in one month after the Desktop launch. Paper did not provide the starting ARR, current revenue or customer retention behind that multiple, making the scale of the increase impossible to measure independently.
Paper also says thousands of teams pay for the product and that it appeared near the top of Ramp's fastest-growing companies list for four consecutive months. Named users include Ramp, Lovable, Harvey, Vercel, PostHog, Quartr and Y Combinator. Those adoption and revenue figures come from Paper.
The business already has a conventional software subscription model. Paper offers a free tier with 100 MCP tool calls per week. Its Pro plan costs $20 per user when billed monthly or $16 per user per month on an annual contract, while organization pricing is negotiated separately.
Paper said it will use the Series A to expand its editor, agent infrastructure and fully remote workforce. Open positions include principal-level product design, design engineering and product engineering roles, along with a first business operations hire.
The hiring plan shows where the financing is going. Paper has early usage and a paid product, but Haney is trying to establish the canvas as infrastructure before larger design platforms make coding-agent access a standard feature. His advantage rests on the architecture he chose at the start: an HTML-and-CSS canvas built for agents to edit directly, rather than an agent layer added to an older design format.