Eragon raises $12 million to build an agentic AI operating system

Eragon, a startup founded in August, has raised $12 million at a $100 million post-money valuation—a company’s value after investment—to develop an agentic AI operating system. Agentic AI refers to AI systems capable of taking actions on behalf of users. The company’s core objective is to replace traditional enterprise software interfaces, such as buttons and menus, with natural language prompts. The funding round drew participation from investors including Arielle Zuckerberg at Long Journey Ventures, Soma Capital, Axiom Partners, and strategic angels Mike Knoop and Elias Torres. Sandhya Venkatachalam, a partner at Axiom, noted that the firm sees enormous potential for Eragon to become the connective tissue for how modern teams operate and make decisions.

Operating from San Francisco, Eragon is building out its technology stack with technical talent that includes Rishabh Tiwari of Berkeley and Vin Agarwal of MIT. The startup’s technical approach involves post-training open source models, specifically Qwen and Kimi, on customer datasets to automate workflows. This strategy is currently being tested by customers including Dedalus Labs and Corgi, a company that raised $180 million. To keep data secure, Eragon deploys these models directly within the customers’ own cloud environments. Nico Laqua, the CEO of Corgi, stated, “Most of the data we have needs to remain secure and behind our own cloud.”

This shift toward agentic tools reflects a broader industry trend. Nvidia CEO Jensen Huang recently compared the transition to how Windows made it possible to create personal computers, predicting that every software-as-a-service company will become Agentic-as-a-Service. However, implementing these systems presents significant challenges. Security concerns raised by AI agents are big, and it is easy to imagine edge queries that baffle the software, or hard-to-audit failures. Separately, an MIT study reports that 95% of AI corporate trials fail to catch on. Despite these hurdles, Eragon founder Josh Sirota asserts that software is dead and expects the startup to be a billion-dollar company by the end of the year.

Why it matters

Eragon is attempting to offer the whole suite of business software through an LLM interface, aiming to replace traditional interfaces like buttons and menus with natural language prompts.