Resolve AI, a startup that automates the work of system reliability engineering by troubleshooting system failures, has announced a $125 million Series A funding round at a $1 billion valuation. The investment was led by Lightspeed Venture Partners, with participation from existing investors Greylock Partners, Unusual Ventures, Artisanal Ventures, and A*.
This announcement confirms a prior TechCrunch report from December that the startup was raising funds at a billion-dollar valuation with Lightspeed leading the round. Sources had indicated at the time that the round may have consisted of multiple tranches at different prices, which could have placed the company’s actual blended valuation below $1 billion. A spokesperson for Resolve denied this, stating that 100% of the equity was purchased at the full $1 billion valuation. Such funding structures can allow certain investors, often the lead, to purchase a significant portion of equity at a lower price.
Resolve was co-founded in early 2024 by two former Splunk executives, Spiros Xanthos and Mayank Agarwal. Their previous startup, Omnition, was acquired by Splunk in 2019.
Another startup applying AI to identify and resolve system outages is Sequoia-backed Traversal. This emerging category is known as AI SRE.