We’ve long documented the challenges DevOps and operations teams in specific areas like security face today when it comes to data observation: a wide variety of services across an organization’s network landscape translates into many data streams they deliver. must follow for performance, safety and other reasons. That leads to the emergence of a wave of startups developing tools to better manage this. In one of the latest developments, Coralogixwhich has built a platform to harness those streams of data in one mighty river announces a mighty round of funding to expand its business.
The Israeli startup, which is also headquartered in San Francisco, has raised $142 million, funding it will use to continue investing in its R&D and build more of its sales and business development worldwide.
This is a Series D round and is co-led by Advent International and Brighton Park Capital, with the participation of Revaia Ventures and past backers Greenfield Partners, Red Dot Capital Partners, Eyal Ofer’s OG Tech, StageOne Ventures, Joule Capital Partners, and Major investment.
The company is not disclosing its rating – specifically, CEO and co-founder Ariel Assaraf told me it would not disclose this figure due to the current fundraising environment (very difficult) and the fact that it humiliates him and the rest of the team. . But he did acknowledge that it was definitely an up-round coming from very strong numbers since the $50 million round less than a year ago (when it was valued at between $300 million and $400 million), with revenue in the tripled over the past year, positive ROI on its R&D spend and 50% growth in workforce. It has raised $238 million so far and says it has more than 2,000 customers.
When we covered Coralogix’s funding round last July, the company’s unique selling point was to offer a specific approach to stateful streaming services – specifically providing tools to collect log analytics and statistics for platform engineers, with new opportunities also in security services (which data observability, and in which the company recently launched a special service called Snowbit) and business intelligence, based on its flagship Streama product.
Essentially, Coralogix provides DevOps and other technical teams with a way to observe and analyze data flows before indexing and/or sending them to storage, giving them more flexibility to search the data in different ways and faster (and cheaper) ) to understand this pre-indexing results in less latency).
In addition, the company is now adding a fourth area: now it will also offer a distributed query engine for quick queries on mapped data from a customer’s data. own archives in external storage. As with the other tools, part of the goal is speed, but the other (related to it) is cost savings, some 40-70% less compared to other tools used to query data in storage, he said. the.
“Our goal with Corlogix has always been to expand into a full observation platform, which we have now done,” Assaraf said in an interview.
All of this is a formidable task and much needed by the kind of tech-heavy customers Coralogix — and others it competes with, such as Datadog, Splunk, New Relic, Microsoft — targets. If we just take Coralogix’s own customer base, those 2,000+ enterprise customers cover 20,000 active users (engineers and other technical teams) and no fewer than 500,000 applications, which says a lot about the fragmentation and data flow spaghetti that DevOps teams face.
The specific focus of Corologix as a company and its progress is an interesting illustration of the current fundraising climate for startups. Assaraf told me this was a preventive round, not raised because the money was needed (it still hasn’t reached the bank funding from the last round), but because the money was offered and the company has big plans and wants a keep long runway…just in case.
He believes that investors are interested in the company for a few reasons. First, there is a shift that many of them have made from what they see as less unique products and more towards companies building fundamental technology. Or as Assaraf put it, “They’re more into deep tech now… and we’re here.”
The second reason is related to this, a focus on companies building what Assaraf described as “mission-critical” technology versus “luxury products.” The latter category is of course a portable party; so this one might be a bit more debatable.
The third reason is a little less arguable: VCs are much more focused on companies that show good unit economy, and this is another area where Assaraf said his company stands out. “We’ve grown a lot, but we also maintain a very good margin,” he said, “it’s quite similar to public companies in our industry.”
Overall, DevOps has definitely become a much hotter area, as digital transformation has continued to bring a wider range of organizations into the product sales pipeline to help manage the broader business of navigating, getting the most out of it, and protecting critically the corporate data. data products and increasingly the business in general.
“Coralogix is an established leader in the modern observability market, distinguished by its product, mission and vision,” said Alek Ferro, director at Advent, in a statement. “We are confident that Coralogix’s unique data streaming architecture and analytics pipeline will continue to transform the category through its ability to deliver superior monitoring coverage, insights and results, while delivering significant cost savings. We are excited to partner with Coralogix’s management team as they build on this momentum.”
“Monitoring the applications that now orchestrate much of our economy is a critical part of the modern software world, and Coralogix’s technology enables its customers to do so at scale without incurring excessive costs or performance or functionality. at risk,” Mike Gregoire, a partner at Brighton Park, said in a separate statement. “Coralogix’ offerings are incredibly powerful and we see several opportunities to extend their functionality while maintaining the highly responsive support their customers have come to expect.”