Traversal, a New York company that builds AI systems to investigate and fix software outages, has raised a $120m Series B at a $1bn valuation. The round, announced on 3 November 2026, was co-led by Kleiner Perkins, Redpoint Ventures and Khosla Ventures.
Sequoia Capital and Battery Ventures also invested, and TechStartups and Unite.ai reported that Amex Ventures took part. American Express is also a customer.
The new money brings Traversal's total funding to $173m, according to TechStartups and Unite.ai.
“Site reliability engineering is one of the hardest problems in applied AI”Anish Agarwal, CEO and co-founder, Traversal
What Traversal does
Traversal sells what it calls AI site reliability engineers. These are software agents that look into production incidents, trace them to a root cause and then recommend or carry out a fix. The company says they are built on causal machine learning and on what it calls a Production World Model, a map of how a customer's systems fit together.
The Production World Model and a Causal Search Engine launched in March 2026, and a product called Traversal Workers is now generally available, the company said. According to its blog, about two-thirds of use now goes beyond root-cause analysis.
The company was founded by chief executive Anish Agarwal with Raaz Dwivedi, Raj Agrawal and Ahmed Lone. Three of the founders came from research in causal machine learning and reinforcement learning at MIT, Berkeley, Columbia and Cornell. Its founding year was not disclosed.
The company's headquarters are at 151 West 26th Street in New York, according to its website. Its homepage now carries the headline figures from the round, a $120m raise at a $1bn valuation.
Customers and growth
TechStartups named Nubank, Harvey, DigitalOcean, PepsiCo and American Express as customers. Nubank founder and chief executive David Vélez said, in remarks reported by TechStartups, that five weeks into its rollout the product was already becoming part of how the bank's on-call engineers handle incidents.
The company gave several figures on its growth, none independently verified. It said monthly investigations rose more than 100-fold during 2026, from 513 to nearly 73,000. TechStartups and Unite.ai reported that annual recurring revenue had grown ninefold since the start of the year, that Traversal ran more than 150,000 investigations last quarter and that it supports more than 4,000 engineers. It did not disclose revenue in dollars.
The company's blog also carried a comment from Alex Palcuie, who leads site reliability engineering at Anthropic, and a testimonial from the cloud hosting company Cloudways. The blog post did not give a date, but the round was reported by TechStartups and Unite.ai on 3 November.
The funding so far
Traversal came out of stealth in June 2025 with $48m in funding. TechStartups reported that Sequoia and Kleiner Perkins led that earlier funding.
The company said it would use the Series B to hire across research, engineering and sales, with the aim of moving towards what it calls self-driving production systems that need less human intervention when things go wrong.
Company website: traversal.com