Arga Labs has raised $10 million in seed funding to expand its simulation platform for testing AI agents against realistic software environments before deploying them into production. General Catalyst led the round, with participation from BoxGroup, Emergence, Gradient and SV Angel.
Arga Labs is addressing a growing challenge created by the rapid adoption of AI agents across enterprise software.
As agents gain the ability to interact with more applications, permissions, data and external systems, companies need ways to evaluate how those agents will behave under realistic conditions without exposing live production environments to unintended actions.
Arga builds simulated environments that replicate the software systems an AI agent will encounter in the real world.
These environments allow developers to test an agent’s behavior across different permissions, datasets, dependencies and workflows before connecting the agent to production infrastructure.
The company says it can clone any SaaS environment in less than 12 hours with 100% fidelity.
That enables teams to reproduce the conditions their agents will face while isolating testing from real customer data and operational systems.
Customers have already completed more than 100,000 tests using Arga’s platform over a 16-week period.
The growing volume reflects an emerging requirement for AI development teams: agents increasingly need to be tested across complex combinations of tools and real-world scenarios rather than evaluated solely on individual model responses.
Arga’s approach effectively gives AI developers a controlled environment in which they can identify failures, permission issues and unexpected agent behavior before deployment.
That becomes more important as AI systems move from answering questions to performing multi-step actions across enterprise applications.
Arga Labs was founded by longtime friends Phillip Li and Akira Tong.
Li serves as CEO, while Tong is CTO.
The pair met in a first-year university calculus class when Li was 17 and Tong was 14. Tong had skipped high school before entering university.
They later worked at companies including Amazon, Goldman Sachs and Stripe before founding Arga together.
The new financing will support Arga as it expands its technology and works with more companies building AI agents intended to operate across real-world software systems.
