Press Release

Raindrop Raises $15 Million to Detect Critical AI Agent Failures

“Like Sentry, but for AI Agents” – Funding led by Lightspeed Venture Partners will enable Raindrop to meet enterprise demand and become the default monitoring solution for AI agents.

SAN FRANCISCO, Dec. 1, 2025 /PRNewswire/ — Raindrop, the monitoring platform for AI agents, announced $15M in seed funding led by Lightspeed Venture Partners. The funding will enable Raindrop to meet enterprise demand, and continue defining the frontier of production monitoring and issue detection for AI agents.

The round includes participation from leading AI companies including Figma Ventures, Vercel Ventures, founders of Replit (Amjad Masad and Michele Castata), Cognition (Walden Yan), Framer (Koen Bok and Joen van Dijk), Speak (Andrew Hsu), Notion (Akshay Kothari), and YC.

“AI agents are more capable than ever. They’re reasoning longer, using more tools, and connecting to MCP servers. Some agents now run autonomously for hours,” said Raindrop CEO Zubin Koticha. “Traditional testing methods, like evals, aren’t capable of handling the complexity of these long trajectories. This leaves engineering teams in the dark – unable to discover or track issues. Raindrop is the first monitoring platform to solve this problem.”

AI agents are increasingly entrusted with high-stakes tasks and deployed across critical sectors like healthcare and financial services; failures mean business-critical or even life-threatening issues. Recent headlines have been flooded by issues like ChatGPT encouraging users to stop taking medication or Air Canada being sued because their chatbot promised refunds they couldn’t honor.

Legacy monitoring tools for AI agents simply provided latency or token usage metrics. At best, they offered unreliable or generic metrics like toxicity or user sentiment. These metrics were not effective at revealing errors in AI agents.

Raindrop established the new standard for monitoring AI agent behavior: small, custom models that adapt to the unique shape of each AI product. This enables engineers to monitor signals that were previously invisible. For example, in addition to Raindrop’s default signals like “User Frustration,” customers can define custom signals like “UI Aesthetic Complaints” or “Agent Stuck in a Loop” and see incident rates over millions of events. Raindrop then triggers Sentry-style notifications when problems emerge.

To discover hidden issues, Raindrop’s AI agents work in the background to triage and investigate potential issue patterns. When a new issue is detected, like the agent encouraging toxic user behavior, Raindrop collects information on the issue and generates step-by-step explanations of what happened.

“We keep seeing AI engineering teams struggling with agent failures in production, and traditional evals are not really helping,” said Bucky Moore, Partner at Lightspeed. “We invested in Raindrop because they defined monitoring for AI agents. They made an early bet that monitoring would be the most critical part of building reliable agents, and they’ve been right. They’re growing fast as Raindrop is being embraced by some of the most forward-thinking engineering teams in AI. Lightspeed is thrilled to partner with Alexis, Ben, Zubin, and team to help them scale Raindrop into the default agent observability platform for enterprises and startups alike.”

Today Raindrop works with frontier AI customers processing millions of events each day to help quickly discover, monitor and resolve critical issues. Many of these teams use Raindrop Experiments, the first A/B testing platform for agents, to validate and iterate on solutions (tool, model or broader pipeline changes) and see if their fixes actually worked.

“Raindrop has been invaluable as we’ve been growing quickly,” said Evan Goldschmidt, CTO Tolan. “It’s critical for us to keep issue incidence below an acceptable threshold and become aware of any spikes. It’s like if we see an iOS crash report in Sentry, but for our AI capabilities.”

“Our founding team was building a coding agent ourselves and kept running into silent agent failures in production. When we did YC we saw everybody building agents in our batch had the same problem,” said Zubin Koticha, Raindrop’s CEO.

Raindrop was founded by Ben Hylak, Zubin Koticha and Alexis Gauba. Alexis and Zubin are second-time founders (previous company acquired by Coinbase); Ben was an engineer at Apple, before joining Apple’s elite Human Interface (HI) Design team where he worked for four years.

About Raindrop
Raindrop is an applied AI research company building “Sentry for AI agents” – monitoring infrastructure that catches when AI agents fail silently in production. Raindrop allows AI engineering teams to discover, track, and fix issues with their agents. Raindrop is backed by Lightspeed Venture Partners and other leading investors. https://www.raindrop.ai/

About Lightspeed Venture Partners
Lightspeed Venture Partners is a multi-stage venture capital firm focused on accelerating disruptive innovations and trends in the Enterprise, Consumer, Health, and Fintech sectors. Over the past 25 years, the Lightspeed team has backed hundreds of entrepreneurs and helped build more than 500 companies globally, including Abridge, Affirm, Anthropic, Cato Networks, Epic Games, Glean, Mistral, Moveworks, Navan, Netskope, Rubrik, Snap, Wiz and more. Lightspeed and its global team currently manage $30B in AUM across the Lightspeed platform, with investment professionals and advisors in the U.S., Europe, India, Israel, and Southeast Asia. www.lsvp.com

 

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