– Skyflow raised $30 million in a Series B extension led by Khosla Ventures
– The new capital comes after Skyflow expanded its data privacy business to support new AI technologies
– Skyflow saw revenues from large language model-related usage grow significantly, with AI becoming a material portion of its total business
Skyflow has raised a $30 million Series B extension led by Khosla Ventures, indicating the company’s growth and impact from the rise of AI technologies. The new capital comes after Skyflow expanded its data privacy business to support new AI technologies, with revenues from large language model-related usage growing rapidly.
Initially an API for storing personally identifying information, Skyflow has broadened its data management services to include AI-related software offerings. As data accumulation and AI usage increase, the need for proper permissions and governance becomes critical, driving demand for Skyflow’s services.
The decision to raise more capital, albeit in the form of an extension, highlights Skyflow’s expansion efforts and response to evolving data residency rules. The company’s focus on data privacy and security aligns with Khosla Ventures’ investment strategy, emphasizing the importance of trust and privacy infrastructure in protecting sensitive data.
Skyflow’s significant revenue growth last year, doubling in size and reaching the double-digit million realm, positions the company as a key player in the AI and data privacy space. The round reflects broader trends in the industry, with startups seeking more modest follow-on rounds and the increasing demand for LLM infrastructure and support services.
As Skyflow continues to capitalize on the growing enterprise demand for LLMs, its success will serve as a barometer for the expanding market and the opportunities available in the software industry. The company’s focus on AI-related data privacy work underscores the lucrative potential in selling tools for the digital age gold rush.