Blacksmith Raises $45M At $550M Valuation To Tackle AI Code Validation Bottleneck
aiinsider ·
Blacksmith has raised a $45 million Series B round led by Peak XV Partners, valuing the company at $550 million, a sharp increase from its $60 million valuation less than a year ago. Existing investors GV and Y Combinator also participated, bringing total funding to $58.5 million. Founded in 2024, Blacksmith helps companies build, test, and verify software before deployment, and CEO Aditya Jayaprakash says it now serves over 5,000 customers including Mercury, Supabase, and Clerk. The startup attributes its growth to the rise of AI coding tools that generate code quickly without guaranteeing quality, making validation a key bottleneck. Blacksmith began as a cloud provider for continuous integration workloads and later expanded into Codesmith, an AI coding agent that automatically fixes failed code checks. The company reached a $10 million annualized revenue run rate with just ten employees and has since grown to about thirty staff while increasing revenue into the tens of millions. Jayaprakash says Blacksmith competes on speed and affordability against rivals such as GitHub Actions and major cloud providers, and plans to expand into a broader suite of coding tools.
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