Skyflow recently announced a $30 million Series B extension led by Khosla Ventures, reflecting the company’s growth in AI technologies. Skyflow’s AI-related software offerings have become a significant part of its business, with revenues from large language model-related usage increasing to around 30%. This growth highlights the market demand for data-management services amidst the data voracity of LLMs.
Originally an API for storing personally identifying information, Skyflow now supports a wider range of data, especially in the age of data accumulation and AI utilization. The new capital will help Skyflow expand its regional footprint to comply with data residency regulations, including those in China.
The decision to call the round an extension instead of a Series C reflects the evolving landscape of late-stage investing, with a focus on low dilution and faster growth. Khosla Ventures’ investment underscores the importance of data security in corporate AI usage.
Driven by the surge in AI adoption, Skyflow experienced significant growth last year, doubling in size and reaching double-digit million revenue. The round aligns with trends of startups seeking more modest follow-on funding, the rapid growth of AI infrastructure businesses, and the resilience of API-based tools in the market.
As Skyflow’s AI-related data privacy services continue to drive revenue, the company’s growth will serve as a barometer for enterprise demand in the LLM space, showcasing the potential for success in selling data security solutions in the evolving software industry.
