Judgment Labs Closes $32M in Seed and Series A Funding

The company plans to use the funding to grow its team, expand operations, and support ongoing product development.

For the past few years, most LLM applications have focused on chatbots that answer questions. Now, a new wave of AI agents — such as Anthropic’s Claude Code, OpenAI’s Codex, and Cognition’s Devin — is changing that model. Instead of only responding to prompts, these AI systems can complete full tasks, write and run code, browse the web, ask follow-up questions, and work independently for long periods.

This shift from simple chatbots to autonomous AI agents is transforming industries such as software development, legal services, finance, and customer support.

As AI agents become more advanced, the way companies measure AI quality must also change. Traditional chatbot evaluations focused on a simple input-output — whether the answer was correct or incorrect. But deep AI agents work differently. They complete tasks through a long sequence of actions, decisions, searches, and corrections, and problems can happen at any step in that process.

When these agents fail, the final answer may only show small mistakes, while the real issue may have happened earlier — such as using poor search terms, skipping steps, failing to ask clarifying questions, or continuing when they should have stopped. Judgment Labs was created to solve this challenge by helping teams analyze the full path an AI agent takes, identify recurring failure patterns, and turn real-world interactions into improvements that can be quickly added back into the product.

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"Judgment is solving the hardest problem in the agent stack — how do you measure and improve something that thinks, plans, uses tools, and remembers?" said James Alcorn, Partner at Lightspeed Venture Partners. "The Judgment team has been productizing agentic evaluations long before the word ‘evals’ became popular. They have a clear technical vision, a product that agent-native startups are already standardizing on, and a market opportunity that grows with every company that puts an agent into production. We led the seed because the bet was obvious, and we led the Series A because the results have been extraordinary."

"We set out to build Judgment because the teams building deep agents didn't have tools that understood what their agents were actually doing," said Alex Shan, co-founder and CEO of Judgment Labs. "Input-output evals miss so much of where agents go wrong. Lightspeed has been the right partner from day one: they backed us when we were a handful of researchers with a thesis, and they're doubling down now that the thesis is playing out in production."

"Our agents are in front of customers every day and the quality bar keeps going up," said Aqil Naeem Chief Executive Officer at E3 Group. "We tried other tools, but none of them could automatically point toward where things failed. Judgment is in a different league; we can see exactly where our agents make mistakes, fix them and measure the lift. Its the difference between guessing and knowing, and its showing up directly in our customer experiences."

About Judgment Labs

Founded in 2025, by Alex Shan, Andrew Li, and Joseph Camyre, Judgment Labs provides a platform for improving AI agents using real production data. Its infrastructure help's teams evaluate long running reasoning processes, tool usage and memory behavior, enabling companies to improve how their AI agents perform continuously.

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