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Undo has raised USD $37 million in a growth investment round led by Elsewhere Partners, as the Cambridge software company expands its work on AI-based root cause analysis for complex software faults.
It plans to use the funding to speed product development and expand in the United States and Europe. Undo sells tools that help software engineering teams investigate problems across development, testing and production, with customers in sectors including databases, semiconductors and financial services.
Its software records a program's execution history so that engineers and, increasingly, AI systems can examine what happened while code was running. The approach is intended to address a gap in software debugging as more code is written or assisted by generative AI tools, which can produce output that teams did not fully design or inspect themselves.
Elsewhere Partners has taken a central role in the deal. Rod Favaron, an Operating Partner at the investor, will serve as Executive Chair of Undo's board, with support from Elsewhere Operating Executive Thom Everett and Elsewhere Operating Advisor Damion Heredia.
Undo argues that runtime data provides AI systems with better context for identifying the sources of failures in large, complex software environments. Internal benchmarks found newer AI models identified the root cause of 38% of complex bugs without Undo's runtime context, compared with 92% when that context was added.
The business also says customers have completed root cause analysis 100 times faster using its technology. The claim reflects a growing commercial focus on cutting the time engineers spend chasing intermittent or hard-to-reproduce bugs in large codebases.
AI and debugging
The funding comes as software companies work out how AI changes the economics of engineering. While code generation tools can increase output, they also raise questions about software quality, traceability and maintenance, especially in systems where failures can disrupt critical infrastructure, financial operations or security products.
Favaron set out that concern in a statement on the deal.
"AI is making code unmanageable - introducing code that engineers cannot understand, trust, or debug. So while AI helps them generate more code, some of it is poorly understood, poorly structured, and of questionable quality. Systems become full of unknowns, making them unstable and increasing the risk of outages, security breaches, and customer escalations," said Rod Favaron, Operating Partner, Elsewhere Partners.
"Undo ensures engineering teams can effectively operate complex systems in an AI-first world and provide the essential runtime context for enterprise-grade, AI-assisted software," he added.
Undo's pitch is that AI models need more than just source code and log files to diagnose difficult problems reliably. By keeping a full record of a program's behaviour at runtime, developers can revisit failures with greater precision and provide AI agents with a more complete factual basis for analysis.
Customer use
One customer cited by the company is Palo Alto Networks, where engineering teams manage large, complex codebases. The security group says the technology is improving visibility into faults that do not show up clearly in conventional logs.
"Quality is extremely important at Palo Alto Networks, and we cannot afford to rely on guesswork. The hardest-and costliest-bugs in multi-million-line codebases live in runtime state and are not captured by logs or other solutions," said Suresh Sangiah, Senior Vice President of Engineering, Palo Alto Networks.
"Undo provides the visibility needed to catch and correct errors before they become an operational problem for our customers, enabling automatic root cause analysis. Undo often autonomously finds the root causes in minutes," Sangiah added.
The investment is expected to support hiring across product development, customer support and commercial teams. Undo plans to expand those functions on both sides of the Atlantic as demand for AI-assisted software investigation grows.
Founder and Chief Executive Officer Greg Law said the company had spent years developing recording technology that has become increasingly relevant as AI-generated code spreads across software development workflows.
"We are ahead of the curve. Undo has spent years building deterministic, program recording technology for code failure runtime visibility, which has become essential with the rise of AI," said Greg Law, Founder and Chief Executive Officer, Undo.
"This investment allows us to accelerate at exactly the right moment - embedding Undo into AI workflows, scaling our commercial reach, and ensuring we are an essential part of how engineering teams operate in this new, AI-first world. We look forward to working alongside the Elsewhere team to ease the next era of software engineering problems for companies around the world," he added