Resolve AI, a startup focused on automating site reliability engineering, has secured a Series A funding round led by Lightspeed Venture Partners, achieving a headline valuation of $1 billion. However, due to a multi-tranched investment structure, the company's effective valuation is lower as investors acquired a significant portion of equity at reduced prices. This funding model is gaining traction among top AI startups.
The startup, founded less than two years ago, has an annual recurring revenue (ARR) estimated at $4 million. Co-founders Spiros Xanthos and Mayank Agarwal, both previously associated with Splunk, have collaborated for over two decades, including co-founding Omnition, which was acquired by Splunk in 2019.
Resolve AI's technology addresses the increasing complexities of modern software systems by autonomously diagnosing and resolving production issues, thereby alleviating the burden on human engineers. As companies face challenges in managing distributed cloud infrastructures, automating site reliability tasks is expected to decrease downtime and operational costs while allowing engineering teams to concentrate on feature development.