Traversal Raises $120 Million at $1 Billion Valuation to Expand AI Platform

Traversal announced a $120 million Series B at a $1 billion valuation Tuesday, Nov. 3, giving the New York-based software startup capital to expand its AI platform and pursue more autonomous operations.

The company did not specify whether the valuation was pre-money or post-money. Kleiner Perkins, Redpoint Ventures and Khosla Ventures co-led the round, with Sequoia Capital, Battery Ventures and Amex Ventures also participating. Traversal plans to use the proceeds to expand its platform and hire in research, engineering and go-to-market roles.

Traversal’s platform combines AI agents with causal machine learning to investigate software incidents and identify their root causes. Site reliability engineering is the work of maintaining software services and diagnosing failures in live systems. The company’s broader goal is to connect software development with the work of keeping deployed systems running.

Annual downtime costs for Global 2000 companies were estimated at $600 billion in 2026, 50% higher than in 2024. Nubank, Harvey, DigitalOcean and PepsiCo are among Traversal’s customers.

Traversal disclosed $48 million in seed and Series A financing when it emerged from stealth in June 2025. “After two years refining our technology, we're seeing customers expand how they use Traversal across increasingly complex production environments,” said Anish Agarwal, Traversal’s co-founder and CEO.