LocusX, a Montreal-based gaming tech startup, announced on September 10, 2025, the closing of a CAD$3 million (~USD$2.2 million) seed funding round to develop its AI-powered issue resolution engine, designed to accelerate video game and software development by streamlining debugging. The round was co-led by Diagram Ventures and Triptyq Capital.
Funding: CAD$3M seed round, co-led by Diagram Ventures and Triptyq Capital.
Purpose: Develop AI-powered issue resolution engine for game development.
Impact: Reduces debugging time, enhances game quality and efficiency.
Leadership: CEO Francois Pelland (ex-Tencent, Ubisoft) and CTO Yan Côté (ex-Apple, Vrvana).
Market Context: Addresses rising costs and delays in AAA game development.
Future Plans: Expand to other software verticals beyond gaming.
LocusX’s platform tackles the costly and time-consuming bug-fixing pipeline in game development, a major cause of delays in AAA titles. “Game development is under more pressure than ever,” said CEO Francois Pelland. “We built LocusX to solve debugging, one of the most frustrating and expensive parts of the process.” The AI-driven engine ingests game data and provides recommendations via agents for QA automation, resolution suggestions, metric visualization, build system support, player trend analysis, and testing coverage validation, achieving a reported 30% acceleration in resolution cycle time.
High Game Quality: Increases daily fix ratio for stable, high-quality games.
Efficiency Boost: Offers AI insights for performance tracking and resource balancing.
Resolution Confidence: Provides real-time dashboards for bug resolution metrics.
Founded by gaming veterans Francois Pelland (25+ years at Tencent, Ubisoft, EA) and Yan Côté (co-founder of Vrvana, acquired by Apple), LocusX leverages deep industry expertise. “AI is transforming how games are built, and debugging is one of the areas where its impact is most immediate,” said Côté, who previously served as an algorithm architect for Apple’s Vision Pro. The team’s experience positions LocusX to address critical pain points in game development.
The seed round, closed in July 2025, reflects investor confidence in LocusX’s vision to streamline game development amid rising costs and player expectations. “The gaming industry is entering a new era where efficiency, data, and automation will be just as important as creativity,” said Frederic Latreille of Diagram Ventures. Triptyq Capital, focused on digital entertainment, complements Diagram’s fintech and climatetech expertise. The CAD$3M will fund product refinement and team expansion from five to a larger crew, with plans to extend the platform to other software verticals.
LocusX’s focus on AI-driven debugging is timely, given the gaming industry’s $184 billion market size and increasing complexity of AAA titles. However, the platform’s effectiveness hinges on developer adoption, as it proposes fixes rather than automating them, requiring human oversight. Competition from established tools like Unity’s BugSplat and emerging AI solutions could challenge market penetration. The reported 30% reduction in resolution cycle time is promising but needs broader validation across diverse projects. Expansion beyond gaming will require significant adaptation to varied software ecosystems.
LocusX is an AI-powered issue resolution engine designed to enhance video game and software development. By reducing debugging time, it improves production quality and efficiency. Headquartered in Montreal, LocusX aims to expand its platform to other software verticals.
Diagram, with over $400M in assets under management, is a venture builder and investor specializing in fintech and climatetech. Since 2016, it has launched 25+ ventures, providing capital and hands-on support.
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