Tech | Visa | Scholarship/School | Info Place

Skyflow raises another $30 million as AI surges demand for its privacy business

This morning Skyflow announced that it has raised $30 million in Series B extended funding led by Khosla Ventures. The deal is interesting in many ways, including the structure of the rounds and how Skyflow is affected by developments in artificial intelligence.

The new capital comes after Skyflow last year expanded its data privacy business to support new artificial intelligence technology. Skyflow co-founder and CEO Anshu Sharma said in an interview with TechCrunch that its artificial intelligence-related software products have quickly become an important part of its overall business.

Recently, the startup’s revenue from large language model-related usage has grown from 0% to around 30%, meaning that LLM’s data greed has led to market demand for data management services that has enhanced the company’s growth rate.

Skyflow’s business started with an API to store personally identifiable information (PII) on behalf of customers. Artificial intelligence expands the types of data it may contain. In the current age of data accumulation – it’s no accident that Databricks and Snowflake are household names in the tech world today – and the desire to put that data to work using AI models, ensuring that LLMs and enablers are only using approved data, is no small feat Permissions and governance tasks.

It’s no shock that the startup is now raising more funding. After raising $45 million in Series B funding in 2021, the company told TechCrunch that it deployed a large portion of the funds to expand its regional coverage to better support data residency rules that are important to the company. It is said to be an increasingly important regulatory measure. (Skyflow said in its latest news dump that it expanded support for China and data rules specific to that market.) It’s never an odd time to raise more money in the next few years, but the fact is that this round is smaller , and in expanded form, really caught our attention.

When asked why Skyflow called this round an extension rather than a Series C, which had a slightly different valuation, Sharma said his company and its clients didn’t really care what the round was called. “Money is money to us,” he said. More importantly, in his words, his company has “very low dilution; [was] Ability to raise capital for faster growth. ” fair enough.

However, there’s more to this round name than deserves our time. Sharma said he knows from conversations with the latest round of venture capitalists that later-stage investors are scaling back their investments, while investors he labels “early-stage growth” are more active. So by calling this round a Series B extension, he can better fine-tune his fundraising process. Sharma also highlighted that Khosla Ventures has made several AI investments, making the company aware of the importance of data privacy and security in the use of corporate LLMs.

Vinod Khosla said in a pre-statement that “the need for trust and privacy infrastructure is key to protecting sensitive data,” hence the development of a system that ensures data is not leaked under any circumstances. Tools are “critical to every enterprise business.” Hence the Skyflow transaction.

From a broader growth perspective, Skyflow more than doubled in size last year and revenue grew 110%. Sharma declined to specify which type of revenue the figure relates to, whether it’s annual recurring revenue or trailing revenue or something similar. But he did say the company is now in double-digit million in revenue.

Skyflow’s funding round fits into several trends we’ve been observing recently. Startups that raised money at the height of the venture bubble in 2021 are now seeking more modest follow-on financings. The explosive growth of artificial intelligence is creating healthy business for LLM infrastructure and support companies. Finally, although usage-based pricing has taken a bit of a hit in recent years, companies that offer tools through APIs are still doing well.

Given that AI-related data privacy work has become a key revenue stream for Skyflow, its growth will provide a window into how quickly corporate demand for LL.M.s is growing, and how much can be earned selling digital picks and shovels in this area Money, the latest software gold rush.

#Skyflow #raises #million #surges #demand #privacy #business

Leave a Reply

Your email address will not be published. Required fields are marked *