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Lightrun Raises $70M to Revolutionize AI-Powered Code Debugging and Observability

Lightrun, an Israeli startup, has raised $70 million in Series B funding to advance its AI-driven observability platform that identifies and fixes code bugs before they cause issues. As AI accelerates code production, Lightrun’s tools integrate directly into IDEs to simulate and remediate code behavior in real time, helping enterprises like Citi and Microsoft reduce costly software failures. This funding highlights growing demand for smarter debugging solutions amid rising code complexity.

Published April 28, 2025 at 09:13 AM EDT in Software Development

The rapid adoption of AI-based coding has significantly increased the volume of code developers produce, promising faster and easier software creation. However, this surge also brings a heightened risk of bugs and system failures due to the complexity and sheer quantity of code generated. Addressing this challenge, Israeli startup Lightrun has developed an innovative observability platform that detects and remediates code issues before they impact production environments.

In a recent $70 million Series B funding round co-led by Accel and Insight Partners, Lightrun demonstrated strong market traction and investor confidence. The company has now raised a total of $110 million, with strategic backing from major clients such as Citi, Microsoft, Salesforce, and AT&T. These partnerships underscore Lightrun’s relevance and effectiveness in enterprise software development.

Lightrun’s breakthrough lies in its Runtime Autonomous AI Debugger, launched in mid-2024, which integrates directly within developers’ integrated development environments (IDEs). This tool uses AI to simulate how new code will interact with existing production code, enabling automatic adjustments that prevent crashes and disruptions. By monitoring code behavior in real time, Lightrun minimizes manual debugging efforts and reduces costly downtime.

CEO Ilan Peleg highlights that while many observability tools exist, none have yet achieved the 'holy grail' of fully understanding how new code interacts with live production environments and proactively preventing issues with minimal disruption. Lightrun’s platform addresses this by combining deep code visibility with AI-driven remediation, a critical advantage as enterprises face an inflection point where code volume is high but manual fixes remain slow and costly.

Looking ahead, Lightrun plans to deepen its focus on IDE integration while exploring extensions into cybersecurity tooling, given the security risks posed by software bugs. The company also envisions future development of AI-powered code assistants to further streamline code creation and remediation. For now, Lightrun remains dedicated to mitigating risks to software resilience by providing real-time observability and automated fixes.

With estimates indicating that 30% to 60% of production issues stem from code errors introduced by both humans and AI, Lightrun’s platform addresses a critical need in modern software development. By enabling enterprises to observe, simulate, and remediate code continuously, Lightrun is helping organizations reduce downtime, improve software quality, and confidently scale AI-driven development efforts.

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