Serval Triples to $3 Billion on a $150 Million Sequoia-Led Round as It Chases ServiceNow's IT Service Desk

Serval, a startup building AI agents for enterprise IT operations such as access management and ticket triage, announced a $150 million Series C at a $3 billion valuation on Wednesday, led by Sequoia. The round triples the $1 billion valuation the company set in December 2025, when it raised a $75 million Series B, and brings total funding to roughly $277 million, according to Reuters.

Elad Gil, Evantic, First Round, General Catalyst and Redpoint participated alongside new investors Conviction and Headline. The company's mark-up puts it among the fastest-appreciating agentic-IT startups of the year, even as public-market investors have turned more skeptical about AI infrastructure valuations.

The product at the center of the round is Catalyst, software that lets employees create and run coded workflows across IT, security, HR, finance and legal teams, with guardrails, permission checks and approvals administered by administrators. Serval pitched Catalyst explicitly as a replacement for enterprise service-management platforms like ServiceNow. Co-founder and CEO Jake Stauch told Reuters it is "a true alternative replacement for platforms like ServiceNow."

The company's proof point is a customer migration: an unnamed automotive manufacturer that switched from ServiceNow to Serval in 45 days, which Reuters identified as Lucid Motors, citing Stauch. Serval also claims annual recurring revenue has doubled each quarter since the Series B and that two Fortune 20 companies signed on in the six months before the round — figures the company self-reported and did not break out. Catalyst has been generally available since August 20, when Serval said more than 90 percent of its customers had adopted it as their starting point for automation since beta, another company-supplied number.

The money is earmarked for expansion rather than R&D moonshots. Serval plans to add more than 500 people over the next year, including more than 100 automation engineers for ProServal, a new professional-services arm that will help large businesses redesign processes around the product. That services-heavy hiring plan is a notable choice for a startup valued at $3 billion — an admission, perhaps, that replacing a category as entrenched as ITSM is as much an organizational change project as a software sale.

The competitive framing is the real story. ServiceNow has spent the past two years rebranding itself as an AI-first workflow company, and AI-native attackers are now raising at marks that make a direct assault look fundable. Whether customers actually rip out incumbent platforms at scale — one audacious 45-day migration aside — will decide whether this round looks prescient or expensive. For now, Serval has the capital and a marquee lead investor betting the answer is yes.