Valuation & Funding
E2B raised a $21 million Series A in July 2025 led by Insight Partners, with participation from Decibel, Sunflower Capital, Kaya and former Docker CEO Scott Johnston. The company said the financing would expand engineering and go-to-market teams and develop its cloud infrastructure for AI agents.
Vasek Mlejnsky and Tomas Valenta founded E2B in 2023 after connecting an AI agent to sandbox technology from their earlier developer-tools work. They shifted their focus from the agent itself to the reusable computer underneath it, offering an open-source runtime alongside a commercial service that handles provisioning and operations.
By October 2026, E2B said it had started more than two billion sandboxes and that 94 of the Fortune 100 had signed up. Registrations do not establish paid enterprise deployments; its published customer examples include Manus, Perplexity, Hugging Face and Groq.
Product
E2B provides cloud computers for developers building AI agents that need to do work beyond generating text. Each session gets an isolated Linux machine with its own filesystem, shell and network, allowing an agent to execute code, manipulate files, use a browser or run an application without putting that work directly inside the developer's production server.
A developer installs E2B's Python or JavaScript SDK, supplies an API key and calls the service to create a sandbox. The application can upload a spreadsheet, run agent-written Python against it and retrieve the resulting chart, table or report; this is an illustrative workflow, while the choice of model and instructions remains with the application developer.
The same machine can retain files and running processes across the successive steps of a task. Developers can start from a template containing required packages, stream command output, expose an application port for a preview, and pause or resume a session instead of rebuilding its working environment each time the agent needs another instruction.
E2B uses lightweight virtual machines built on Firecracker, with a separate guest kernel for each sandbox. This separates untrusted code from other sessions, while network controls determine which outside services it can reach; developers still need to decide which data and permissions to give the agent.
Its Code Interpreter adds an interface for executing Python or JavaScript and receiving structured results, including images and charts. Its Desktop tools add a screen, mouse and keyboard for agents that interact with software through a graphical interface.
Manus illustrates the broader use case: its planner splits a request into subtasks, while executor agents use a browser, terminal and files inside an E2B virtual computer. E2B supplies that working environment rather than the reasoning model or the agent's task planner.
Business Model
E2B sells managed sandbox infrastructure to software companies and enterprise teams embedding agents in their products or internal systems. The developer or organization pays E2B for the computers its agents consume, while separately choosing and paying for model access and other external services.
As of October 2026, the Hobby plan has no monthly platform fee and includes a one-time $100 usage credit. Pro costs $150 per month plus compute usage and raises the standard concurrency allowance from 20 to 100 sandboxes, with paid add-ons for higher limits; Enterprise offers negotiated commitments, deployment and support terms.
Running sandboxes are billed by the second for allocated CPU and memory. The published rates are $0.000014 per vCPU-second and $0.0000045 per GiB-second of RAM, so both a longer task and a larger machine increase the bill even if the code does not fully use its allocated resources; paused sandboxes are not billed for running compute.
E2B must cover the underlying compute, memory, storage, networking and engineering required to operate those sessions. It can earn money from recurring platform fees and the spread between usage charges and delivery costs, but the economics depend on resource utilization and how much operating work each customer requires.
The open-source runtime lets developers inspect and run the infrastructure themselves. E2B's commercial value therefore rests on making its managed service easier to scale and operate than a self-hosted deployment, with enterprise commitments and bring-your-own-cloud deployments creating a sales path beyond an individual developer's credit card.
Competition
E2B competes directly with Daytona and other sandbox providers for the execution environment behind an AI application. Developers compare isolation, startup behavior, session persistence, deployment options and total operating cost, while also deciding whether to buy a specialist service or use the cloud platform they already run.
Daytona
Daytona similarly gives developers isolated computers through an SDK, with a filesystem, network and configurable compute resources. Its documentation emphasizes Docker-compatible environments and persistent workspaces, making it a direct alternative for agents that need to install software, modify repositories and continue work across sessions.
E2B competes through its microVM runtime, code-interpreter and desktop interfaces, published agent-platform integrations and deployment flexibility. The decision turns on whether a customer's actual workload fits the available environments, lifecycle controls and commercial terms, rather than which provider can execute a short Python snippet.
Modal
Modal offers sandboxes alongside its broader platform for deploying compute functions, GPU workloads and model-serving applications. Its sandbox interfaces support custom images, persistent volumes and network access, giving teams already using Modal a reason to consolidate agent execution with their other infrastructure.
E2B instead concentrates its product around the agent's working computer and exposes that environment through a dedicated sandbox API. Modal's wider compute platform is attractive when an application needs several infrastructure products together; E2B must make specialization valuable through integration, reliability and the effort it removes from running agent sessions.
Cloud platforms and internal infrastructure
Cloudflare offers sandbox environments accessible from Workers, including Linux containers and isolated JavaScript execution. Its advantage is distribution to developers whose applications already use its network and runtime, allowing sandbox execution to sit beside their existing application code and storage.
Large engineering teams can also assemble their own infrastructure from cloud virtual machines and open-source components, including E2B's runtime. E2B competes against the staffing, maintenance and operational burden of that approach, while bring-your-own-cloud deployments let it sell operations and tooling without requiring customers to move their workloads outside their cloud account.
TAM Expansion
E2B's initial buyer is the developer adding code execution to an AI application, but the same isolation and lifecycle controls can support additional budgets in enterprise automation and model research. Expanding into these markets requires selling dependable operation, data controls and large-scale scheduling, rather than relying only on more sandbox minutes from existing applications.
Enterprise automation and regulated data
Financial institutions and other organizations handling sensitive data have security and infrastructure budgets separate from consumer AI application development. E2B's bring-your-own-cloud option places the sandbox workload in a customer's cloud environment, while its enterprise offering includes contractual support, network controls and access to compliance documentation.
This gives E2B a route to sell infrastructure for internal research, analysis and document workflows that a company might otherwise build itself. Winning that work requires passing procurement and security reviews and integrating with private data sources; E2B describes a fully private control-plane deployment as in development, so it should not be treated as an already available option for every air-gapped customer.
Model training and evaluation
AI research teams need many independent environments in which models can attempt programming tasks, run tests and receive feedback. Hugging Face has described using E2B to launch hundreds of sandboxes in Open R1 experiments, and E2B has published work with LMArena on evaluating models' web-development capabilities.
These buyers spend on experimentation and training infrastructure rather than an end-user application's hosting bill. E2B could capture more of that budget by making large batches of environments reproducible and easy to supervise, with revenue tied to the resources consumed during experiments; it supplies the task environment rather than claiming to replace GPU model training.
Desktop and browser automation
Software vendors building assistants for workflows that lack a convenient API need a computer that can see a screen and manipulate existing applications. E2B's Desktop tools and Manus deployment provide a starting point for selling to these vendors beyond the narrower code-interpreter market.
A vendor could use isolated desktops to automate work in a browser or graphical application and pay E2B for each session's compute. Extending this opportunity requires dependable interaction, credential handling and session recovery, because supplying a desktop alone does not ensure that an agent completes a customer's business process correctly.
Risks
Security failures: E2B deliberately runs untrusted agent-generated code and connects it to customer-selected data and services. A sandbox escape or poorly controlled network access could expose information and undermine the trust needed to win enterprise deployments.
Infrastructure margin pressure: E2B charges for CPU and memory while bearing the cost of providing reliable capacity across many simultaneous sessions. Pricing competition, underused capacity or unusually demanding customers could increase usage without producing attractive gross profit.
Bundling and self-hosting: Cloud platforms already offer competing execution environments, and E2B makes its runtime available as open source. Customers may consolidate spending with an existing provider or operate the software themselves unless E2B's managed service continues to save enough engineering work to justify its price.
DISCLAIMERS
This report is for information purposes only and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal trade recommendation to you.
This research report has been prepared solely by Sacra and should not be considered a product of any person or entity that makes such report available, if any.
Information and opinions presented in the sections of the report were obtained or derived from sources Sacra believes are reliable, but Sacra makes no representation as to their accuracy or completeness. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a determination at its original date of publication by Sacra and are subject to change without notice.
Sacra accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to Sacra. Sacra may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect different assumptions, views and analytical methods of the analysts who prepared them and Sacra is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report.
All rights reserved. All material presented in this report, unless specifically indicated otherwise is under copyright to Sacra. Sacra reserves any and all intellectual property rights in the report. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of Sacra. Any modification, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, or selling any report is strictly prohibited. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Sacra. Any unauthorized duplication, redistribution or disclosure of this report will result in prosecution.