Blacksmith, an artificial intelligence startup focused on code testing and validation, has secured $45 million in Series B funding, with its valuation skyrocketing to $550 million. This represents a roughly ninefold increase from its $60 million valuation achieved during its Series A round less than a year ago. The funding round was led by Peak XV Partners, with participation from existing backers GV and Y Combinator, bringing total funding to $58.5 million.
The company, founded in 2024, provides software development teams with tools to build, test, and verify code before deployment. Blacksmith has experienced dramatic growth in its customer base, expanding from over 700 clients to more than 5,000 in the past year. Notable customers include Mercury, Supabase, Clerk, Ashby, and Expensify. The company has also rapidly scaled its workforce from 10 to approximately 30 employees while growing revenue from a $10 million annualized run rate to tens of millions of dollars, with some major clients spending over $1 million annually.
The surge reflects growing demand for code validation solutions as AI-powered coding tools become increasingly prevalent. These tools have made generating code faster, but testing quality remains a significant challenge. Blacksmith addresses this gap through its continuous integration platform and Codesmith, an AI agent designed to automatically correct failed code checks. The company faces competition from major players including GitHub, cloud providers like AWS and Google Cloud, and various other startups operating in the code-testing space.
Originally reported by Techcrunch →
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