Daytona Raises $60 Million at a $1 Billion Valuation to Build a Cloud for AI Agents

Daytona, a San Francisco startup that gives AI agents their own virtual computers, raised a $60 million Series B at a $1 billion valuation on October 20, 2026, as reported by Tech Funding News. FirstMark Growth led the round, which takes the company's total funding to $91 million. The valuation comes eight months after FirstMark also led Daytona's $24 million Series A in February.

Who Invested

Seven founders of well-known technology companies invested as angels: Patrick Collison of Stripe, Tobi Lütke of Shopify, Aravind Srinivas of Perplexity, Eric Yuan of Zoom, Olivier Pomel of Datadog, Adam D'Angelo of Quora and Brendan Foody of Mercor. Qualcomm Ventures, Samsung Next and Okta Ventures joined as strategic investors, alongside Evergreen Fund, Alumni Ventures and Torch Capital. Existing backers returned, and chief executive Ivan Burazin told Fortune that about $50 million of the round came from existing investors. The company's earlier funding was a $5 million seed round led by Upfront in 2024 and a $2 million pre-seed in 2023.

What Daytona Does

Burazin, chief technology officer Vedran Jukić and chief architect Goran Draganić founded Daytona in 2023 to automate software development environments for large companies. Burazin told Fortune that when the founders decided AI agents would need computers of their own, they handed their customers to competitors, rebuilt the product and relaunched with roughly three months of revenue left in the bank.

The product gives each AI agent a sandbox, which is a virtual computer where it can run code, browse the web or operate software without reaching a company's wider systems. Burazin says Daytona can start one in 60 milliseconds. Agents can pause a sandbox, resume it or copy it to try several approaches at once, and the platform runs Linux, Windows, macOS and GPU environments.

Daytona says it supplies infrastructure to Anthropic, OpenAI, NVIDIA, Cursor and Cognition, and counts Meta, Cohere, Mercor, Postman and n8n among its customers. Many use the sandboxes to let AI models practise tasks repeatedly during training and testing. These customer claims come from the company.

Growth With a Hidden Base

Daytona says its revenue run rate, the current pace of revenue projected over a year, has grown about 25 times since January. It also says customers it had six months ago are spending nearly three times as much today. It did not disclose absolute revenue, so the starting point behind those multiples is unknown, and the $1 billion price is a bet on trajectory. Matt Turck, a FirstMark partner who joined the board with the Series A, says the next infrastructure shift is from cloud tools built for humans to ones built for agents.

A Crowded Layer

Daytona's neighbours are raising far larger rounds. Modal, which also sells a sandbox product, raised $750 million at a $15.75 billion valuation on October 14, led by Accel. E2B, an open-source sandbox provider, raised a $21 million Series A led by Insight Partners in July 2025. Temporal, which keeps long-running work going when parts fail, raised a $550 million Series E at $12.55 billion on September 14.

Amazon, Microsoft and Google already rent out virtual machines. Burazin says investors asked why they could not do this too. He told Fortune the big providers could, but argued that rebuilding their infrastructure for agents instead of human users would not be easy. Gartner forecasts that spending on enterprise AI agents and assistants will exceed $23 billion in 2030, though that figure covers the agents, not the infrastructure under them.

What Happens Next

Burazin says most of the new money will go on sales hires, plus some engineers. Daytona has 35 employees, up from 20 in February, and plans to recruit in San Francisco, Croatia and Singapore while building a platform that goes beyond sandboxes. The harder test is whether Daytona can hold its speed advantage once the large cloud providers decide to compete.

What This Means for Founders

First, a pivot can be the right call even when it is costly. Daytona gave up its early customers and relaunched with a few months of cash, and eight months later it is valued at $1 billion. Not every pivot works, but investors will back a team that sees a shift early and is willing to act on it. Know your runway well enough to take that kind of decision calmly.

Second, a quick series of rounds shows a pattern. Seed, Series A and Series B came in 2024, February 2026 and October 2026, each at a higher valuation, and existing investors supplied much of the latest round. When insiders put in most of a round, it is a sign of confidence, but also a reminder to check how much new investor demand there really is. Understand how a rising post-money valuation affects your dilution, and keep a clean cap table.

Third, famous angels are useful but not a substitute for traction. Seven well-known founders invested, yet the company's case rests on growth and customers. If you are raising from a lead investor, show numbers first and names second.

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