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Blacksmith raises $45M Series B, valuing AI code-testing startup at $550M
Key points
- Blacksmith raised $45 million in Series B funding.
- The company's valuation increased to $550 million.
- Blacksmith serves over 5,000 customers, up from 700.
- The startup developed Codesmith, an AI coding agent.
Funding Round and Valuation Increase
Blacksmith announced a $45 million Series B funding round led by Peak XV Partners, with participation from existing investors GV and Y Combinator. This investment brings Blacksmith's total funding to $58.5 million.
The new funding round values Blacksmith at $550 million, a significant increase from its $60 million valuation less than a year ago when it raised a $10 million Series A.
Addressing the Code Validation Bottleneck
Founded in 2024, Blacksmith focuses on helping companies build, test, and verify software before it reaches production. The company's growth is driven by the increased volume of code generated by AI coding tools like Cursor, OpenAI's Codex, and Anthropic's Claude Code, which has made code validation a critical bottleneck.
Co-founder and CEO Aditya Jayaprakash stated that validating code is a growing challenge as developers write more code with AI assistance.
Product Evolution and Customer Growth
Blacksmith initially provided a cloud platform for continuous integration (CI) workloads. It has since expanded its offerings to include Codesmith, an AI coding agent designed to automatically fix failed code checks.
The company has grown its customer base from over 700 to more than 5,000, including clients such as Mercury, Supabase, Clerk, Ashby, and Expensify. Blacksmith reported reaching a $10 million annualized revenue run rate with 10 employees and has since grown its workforce to approximately 30, with revenue now in the "tens of millions of dollars."
Market Competition and Future Plans
Blacksmith operates in a competitive market, facing rivals such as GitHub Actions, Cursor Automations, and validation features within AI coding tools like Codex and Claude Code. Additionally, other startups and major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud offer AI code-testing services.
Jayaprakash indicated that Blacksmith competes on the speed and affordability of its code-testing solutions. The company plans to expand its platform into a broader suite of coding tools to assist developers with writing, validating, and merging software more quickly.
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Reporting from
Blacksmith, an AI code-testing startup, secured $45 million in Series B funding, increasing its valuation to $550 million from $60 million less than a year ago. This funding round addresses the growing need for efficient code validation as AI tools accelerate code generation, creating a bottleneck in testing.