LangChain, the open-source startup for AI app development, has raised $125 million in Series B funding. Led by IVP, this round brings their valuation up to $1.25 billion. The round also included new investors CapitalG and Sapphire Ventures, alongside existing backers Sequoia, Benchmark, and Amplify. Founded in 2022 by Harrison Chase, LangChain’s framework enables developers to build AI agents that connect large language models (LLMs) with real-time data, APIs, and external tools.
LangChain originated from the urgent need to overcome the limitations of early LLMs. Traditional models struggled to access real-time information or perform actions beyond text generation. Harrison Chase’s vision was to ‘chain’ model outputs with external processes to build agents that are not just reactive but capable of deliberate, multi-step operations.
It’s modular architecture features core components such as chains, agents, and memory systems, which allow developers to create applications that reason, interact with data sources, and manage long-running tasks. The platform supports deep customization and human-in-the-loop interactions, making AI development more scalable.
“We saw a clear need for a new approach, agent engineering, to build AI agents that are not only innovative but reliable in production,” said Harrison Chase, CEO of LangChain. “Our tools empower developers to tackle the challenges of AI’s stochastic nature and deliver business-critical solutions.”
User Adoption
LangChain’s open-source libraries boast over 90 million monthly downloads, powering applications used by 35% of Fortune 500 companies. Its orchestration layer, LangGraph, is widely adopted by enterprises such as Uber, Klarna, LinkedIn, and J.P. Morgan. LangSmith, LangChain’s observability and deployment platform, has experienced a twelvefold year-over-year increase in usage.
These deployments span a variety of real-world use cases, from automated customer support chatbots that handle complex multi-turn conversations, compliance monitoring systems that dynamically assess regulatory documents to automated workflow managers accelerating enterprise productivity.
Industry experts note that while the AI agent market has become crowded with competitors like LlamaIndex and Haystack, LangChain’s neutral, flexible framework and strong community engagement give it a significant advantage. By balancing open-source accessibility with enterprise-grade features, LangChain remains versatile and future-proof as AI ecosystems evolve.
Tom Loverro, General Partner at IVP who led the investment, said, “LangChain stands at the forefront of agent engineering, enabling the reliable deployment of AI systems that enterprises can trust. Their vision, product depth, and growing ecosystem mark them as a foundational player in the AI infrastructure landscape.”
The funding will accelerate LangChain’s product expansion, including enhancements to its no-code agent builder, Insights Agent for automated behavior categorization, and scalable cloud infrastructure optimized for long-running AI workflows. These tools aim to lower adoption barriers and improve AI reliability across industries.
As enterprises increasingly integrate AI agents to automate workflows and extract insights from vast data, LangChain is positioned to play a central role in this new push. Its platform converts today’s experimental AI models into mission-critical applications, fueling innovation in customer service, compliance, knowledge management, and so on.
LangChain’s journey from an open-source project to a comprehensive agent engineering platform shows the evolution of AI development tools. The company remains committed to open-source principles while delivering enterprise-grade solutions that address the growing complexity of AI application delivery.
