Empowering AI-Assisted Software Engineering with Runtime Context: Undo Raises €31 Million

Undo, a scale-up based in Cambridge, specializing in AI-powered root cause analysis, has recently secured a €31 million ($37 million) funding round to expedite development efforts and expand its global market reach. The funding round was led by Elsewhere Partners.

According to Undo Founder and CEO Greg Law, the company has developed deterministic program recording technology for code failure runtime visibility, which is crucial in the era of AI. This investment will enable Undo to embed its technology into AI workflows, extend its commercial reach, and become an essential component of engineering teams in the AI-first world.

In 2026, there has been a trend of sustained funding activity in the operational layers of AI-assisted software development, including software supply chain control, AI-agent security and governance, CI/CD, cloud operations, production infrastructure, and developer tooling. Undo’s funding round aligns closely with this trend as it addresses the concern of maintaining reliability, visibility, and control in complex systems with AI-generated or AI-assisted code.

Elsewhere Operating Partner Rod Favaron highlights the challenges posed by AI in making code unmanageable and underscores Undo’s role in ensuring that engineering teams can effectively operate complex systems in an AI-first world. The company’s technology provides the necessary runtime context for enterprise-grade, AI-assisted software.

Established in 2012, Undo enables coding agents to solve complex problems on intricate codebases, facilitating fully automated root cause analysis across development, test, and production stages. By capturing complete execution history into self-contained recordings, Undo allows AI agents to perform accurate root cause analysis, even on AI-generated code.

Customers have reported significant benefits from using Undo, with benchmarks showing that the technology can identify the root cause of issues more accurately and quickly than traditional methods. For instance, the company’s benchmarks demonstrate that root-cause analysis is completed 100 times faster with Undo than before.

Palo Alto Networks Senior VP Engineering Suresh Sangiah praises Undo for providing the visibility needed to catch and correct errors in multi-million-line codebases, enabling automatic root cause analysis and faster problem resolution.

Looking ahead, Undo plans to expand its product development, customer support, and go-to-market teams in the United States and Europe to support the growing demand for its solutions as software engineering requirements evolve. The company aims to address the challenges posed by AI in software development and ensure the reliability and maintainability of complex systems in the AI-first world.