AI code-testing startup Blacksmith’s valuation jumps almost 10x in less than a year

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As AI makes coding dramatically faster, the next big challenge in software development is testing and validating all that code. Blacksmith has raised a new $45 million round to capitalize on that shift.

The Series B, led by Peak XV Partners, values Blacksmith at $550 million, up from the $60 million valuation it was assigned when it raised a $10 million Series A less than a year ago. Existing investors GV and Y Combinator also participated, bringing the startup’s total funding to $58.5 million.

Founded in 2024, Blacksmith helps companies build, test, and verify software before it reaches production. The startup now serves more than 5,000 customers, including Mercury, Supabase, Clerk, Ashby, and Expensify, up from more than 700 customers less than a year ago, co-founder and CEO Aditya Jayaprakash said in an exclusive interview.

The rise of AI coding tools such as Cursor, OpenAI’s Codex, and Anthropic’s Claude Code...

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