Daytona raised a $60 million Series B at a $1 billion valuation to expand a cloud business aimed at AI teams that would otherwise build and maintain the isolated computers their agents use. FirstMark Growth led the October 20 financing, Daytona said.
An agent can ask Daytona’s software to launch a sandbox—a temporary virtual computer—for running code, browsing or using business applications inside an isolated environment. Customers can preserve a sandbox’s state for later work or split it into parallel copies. Daytona bills by the second for compute, memory and storage, with volume discounts and enterprise contracts.
The trade-off is whether customers want to operate that infrastructure themselves. Writer built sandboxes on Amazon Web Services until its workload exceeded 20,000 a day, according to a Daytona case study quoting Writer cofounder Waseem Alshikh. The case study says Writer provisioned 300,000 Daytona sandboxes in one month and cut infrastructure costs by 90%. Another Daytona case study says AfterQuery replaced its in-house Google Kubernetes Engine cluster in one day. These are vendor-published customer results, not independently audited measurements.
Speed is Daytona’s claimed technical wedge. Chief Executive Ivan Burazin told Fortune that conventional cloud instances take 30 seconds to several minutes to start, whereas Daytona can configure a sandbox in 60 milliseconds by keeping prepared machine snapshots on server drives. Burazin acknowledged that large cloud providers could develop competing infrastructure, though he argued that doing so would require substantial changes to systems designed for other workloads.
The current product followed a high-risk reset. Daytona began in 2023 by automating software-development environments for large enterprises, but Burazin told Fortune that the founders sent their customers to competitors, rebuilt the service and relaunched with roughly three months’ worth of revenue left in the bank. The company announced a $24 million Series A for the agent-sandbox business in February.
About $50 million of the new round came from existing investors, Burazin told Fortune. The financing raises Daytona’s disclosed funding to $91 million. Burazin said its revenue run rate grew roughly 25-fold between January and September, although the company did not disclose the starting base or current revenue. He said most of the proceeds would support sales hiring, with some going to engineering.