AI site-reliability start-up Traversal raises $120M at a $1B valuation, co-led by Kleiner Perkins, Redpoint and Khosla

TLDR

• New York start-up Traversal raised $120M at a $1B valuation, taking total funding to $173M.¹
• Kleiner Perkins, Redpoint Ventures and Khosla Ventures co-led; Sequoia, Battery Ventures and Amex Ventures took part.¹
• It sells AI agents that diagnose production software incidents; ARR growth of 9x this year is company-reported.¹²

Traversal, which builds AI agents for site reliability engineering (AI SRE), announced on 3 November $120M in new funding at a $1B valuation, co-led by Kleiner Perkins, Redpoint Ventures and Khosla Ventures, with participation from Sequoia Capital, Battery Ventures and Amex Ventures.¹ The press release does not call the round Series B; the company's blog does.¹² It does not say whether the valuation is pre- or post-money.³ Total funding is put at $173M, while Fortune reported $48M raised before this round, so about $5M of the total is not itemised.¹⁴ Sequoia, which led the seed round, says it used its growth fund to raise its stake "well beyond its existing position".²⁴ Proceeds are for hiring across research, engineering and go-to-market.²

Traversal's agents diagnose, fix and help prevent production incidents for engineering teams. Its founders are chief executive Anish Agarwal, Raj Agrawal, Raaz Dwivedi and Ahmed Lone, who came from quant trading at Citadel Securities; Agarwal and Dwivedi keep faculty posts at Columbia University and Cornell Tech.¹ Customers named are Nubank, Harvey, DigitalOcean, PepsiCo and American Express, which is also an investor.¹ The company says annual recurring revenue (ARR) grew 9x this year and that it ran more than 150,000 investigations last quarter, and its blog says monthly investigations rose from 513 to nearly 73,000 during 2026.¹² No ARR figure in dollars is disclosed, and the Nubank chief executive is quoted saying the rollout is "early".¹ A benchmark built by Cornell Tech, Columbia and Traversal found the best of five frontier agents correct on 25.3 per cent of medium-difficulty incidents, which Unite.ai notes does not measure Traversal's own product.¹⁵

On co-lead track records, the only other incident-response bet found in the sources is Khosla's investment in Foam, a start-up that pitches replacing the observability stack with AI root-cause analysis (a $10M seed in November 2025).⁶ Redpoint's other AI-agent bets include Serval, for IT service management, and Kleiner Perkins has written up Sail, an inference platform for agents; these are adjacent AI infrastructure rather than direct rivals.⁷⁸ A direct rival, Resolve AI, confirmed a $125M Series A at a unicorn valuation in February, led by Lightspeed, according to TechCrunch.⁹ Redpoint's partners call Traversal "the fastest-growing and largest AI SRE vendor by scale", an investor claim the sources do not test.¹

Why it matters: Traversal is valued at $1B on growth multiples rather than disclosed revenue, in a category where Resolve AI reached the same valuation in February, so the investor pitch rests on adoption figures that only the companies report.¹²⁹ Watch for an ARR figure and for whether the AI SRE field consolidates.¹⁹