Traversal raises US$120 million for AI software troubleshooting
The Series B round values the New York startup at US$1 billion, bringing its total funding to US$173 million.
New York-based Traversal said it has raised US$120 million in Series B financing at a valuation of US$1 billion. The startup develops AI agents that investigate software failures, test potential explanations and recommend fixes.
The financing was jointly led by Khosla Ventures, Kleiner Perkins and Redpoint Ventures. Other participants included Amex Ventures, Battery Ventures and Sequoia Capital. Both Sequoia and Kleiner Perkins increased their stakes, and the round brings Traversal’s cumulative funding to US$173 million.
Traversal says its Production World Model organizes telemetry, code and deployment records into a representation that AI can interpret. Its Causal Search Engine examines thousands of potential explanations simultaneously, while Traversal Workers begin investigating when an alert is triggered. Another product, Traversal MCP, shares production findings with AI coding agents.
The company named American Express, DigitalOcean, Harvey, Nubank and PepsiCo among its customers. It said annual recurring revenue had grown nine times since the year began, although co-founder and chief executive Anish Agarwal declined to disclose revenue figures to Forbes.
Customers conducted more than 150,000 investigations during the last quarter, according to Traversal. Monthly investigations increased from 513 to nearly 73,000 this year. The company said about two thirds of usage now involves work beyond identifying outage causes, including alert triage, release risk and security.
Traversal plans to recruit for its research, engineering and go-to-market teams. It emerged from stealth in June 2025, having raised US$48 million from Kleiner Perkins and Sequoia.
