Cambridge-based Undo, a scale-up focused on AI-powered root cause analysis, today announced the close of a €31 million ($37 million) funding round to accelerate development efforts and significantly expand its global market reach.
The round was led by Elsewhere Partners.
“We are ahead of the curve. Undo has spent years building deterministic, program recording technology for code failure runtime visibility, which has become absolutely essential with the rise of AI,” says Undo Founder and CEO Greg Law.
“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.”
Similar 2026 activity points to sustained funding activity around the operational layers of AI-assisted software development: software supply chain control, AI-agent security and governance, CI/CD, cloud operations, production infrastructure, and developer tooling.
Undo’s round sits closest to this group of companies because it addresses a similar enterprise concern: how engineering teams can maintain reliability, visibility and control as AI-generated or AI-assisted code increases system complexity.
The UK comparison is particularly relevant, with Cloudsmith, Geordie AI, Trent AI, CodeWords, Overmind and Toyo all receiving funding in 2026, indicating domestic activity around secure and reliable AI-enabled software infrastructure.
“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,” notes Elsewhere Operating Partner Rod Favaron.
“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.”
Founded in 2012, Undo allows coding agents to solve complex problems on complex codebases, enabling fully automated root cause analysis – across development, test and production.
Undo says they fill a critical gap by giving AI agents the runtime context needed to reliably diagnose complex software issues in multifaceted systems. By capturing complete execution history (how code actually behaves when running) into self-contained recordings, Undo enables AI agents to perform accurate root cause analysis and ensures even AI-generated code remains understandable and maintainable.
No matter how good AI models get, the company outlines that results are limited by how good the context is: AI = model + context. Runtime context tells the model what the programme did, rather than just what the code says, so the models perform significantly better.
According to the company’s benchmarks on a range of complex bugs:
- The latest models are able to identify the root-cause of just 38% without Undo; whereas with Undo’s runtime context that increases to 92%.
- In cases where models can solve a problem without Undo, when the same problem is solved with Undo fewer tokens are used.
- Customers report completion of root-cause analysis 100x faster with Undo than before.
“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,” says Suresh Sangiah, Senior VP Engineering at 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.”
The company plans to significantly scale its product development, customer support, and go-to-market teams across the United States and Europe to support the expansion and adoption of its solutions as software engineering needs evolve.
