Coralogix is ​​investing $142 million in its coffers to turn its production analytics into a full-featured surveillance platform.

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We have long documented the challenges DevOps and operations teams face these days in certain areas, such as security, when it comes to data observability: a wide range of services in an organization’s network landscape translates into multiple data streams that they need to monitor. for performance, security and other reasons. This is leading to a growing wave of startups creating tools to better manage this. In one of the latest developments, Coralogixwhich has created a platform to combine these streams of data into one mighty river, announces a major round of funding to expand its business.

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The Israeli startup, which is also headquartered in San Francisco, has raised $142 million, funds it will use to continue investing in its research and development, as well as boost sales and grow the business globally.

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This is a Series D round and is jointly led by Advent International and Brighton Park Capital, and includes Revaia Ventures and previous sponsors Greenfield Partners, Red Dot Capital Partners, Eyal Ofer’s OG Tech, StageOne Ventures, Joule Capital Partners. and Maor Investments.

The company does not disclose its estimate – in particular, CEO and co-founder Ariel Assaraf told me that she will not disclose this figure due to the current fundraising environment (very tight) and the fact that he and the rest of the team have come to terms with it. . But he acknowledged that it was definitely a rise that came amid very strong numbers since his $50 million round less than a year ago (when it was valued at $300 million to $400 million), with revenue tripled in the last year, a positive ROI on R&D investment, and a 50% headcount growth. The company has raised $238 million to date and says it has over 2,000 clients.

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When we talked about Coralogix’s funding round last July, the company’s unique selling point was its distinct approach to stateful streaming services, in particular the provision of tools for collecting log analytics and metrics for platform developers, as well as new capabilities in security services (which also needs data surveillance, and which the company recently launched a special service called Snowbit) and business intelligence based on its flagship product, Streama.

Essentially, Coralogix allows DevOps and other engineering teams to observe and analyze data feeds before they are indexed and/or sent to storage, giving them more flexibility to query data in a variety of ways and get more information faster (and with less costs as this pre-indexing results in less delay).

In addition to this, the company is going to add a fourth area: now it will also offer a distributed query engine to quickly query mapped data from the client store. own archives in remote storage. As with other tools, one of the goals is speed and the other (related) is cost savings, about 40-70% less compared to other tools used to query data in the warehouse.

“Our goal with Corlogix has always been to expand into a fully observable platform, which we have now done,” Assaraf said in an interview.

All of this is a huge challenge, and one that the high-tech customers that Coralogix targets and others that it competes with, such as Datadog, Splunk, New Relic, Microsoft, badly need. Taking Coralogix’s own customer base alone, these 2,000+ enterprise customers span 20,000 active users (engineers and other technical teams) and at least 500,000 applications, which speaks volumes to the fragmentation and spaghetti data streams that DevOps teams face.

The specific focus of Coralogix as a business and its development is an interesting illustration of today’s climate for fundraising for start-ups. Assaraf told me it was a pre-emptive round, raised not because the money was needed (he still hasn’t touched on bank funding from the last round), but because the money was on offer and the company had big plans. and wants to keep the long runway…just in case.

He believes that investors are interested in the company for several reasons. First, many of them are moving from what they see as less unique products to companies that create foundational technologies. Or, as Assaraf put it, “They’re more into deep tech now…and we’re there.”

The second reason has to do with the focus on businesses that create what Assaraf called “mission-critical” technology rather than “luxury products.” This last category is, of course, a traveling holiday; so this one is potentially a bit more controversial.

A third reason is slightly less controversial: VCs are paying much more attention to companies that perform well in unit economies, another area where Assaraf says his company excels. “We have grown a lot, but we also have very good margins,” he said, “it is very similar to public companies in our sector.”

Overall, DevOps has definitely become a much more relevant area as digital transformation continues to involve a wider range of organizations in the process of selling products that help manage the broader business of navigating, maximizing value, and critically protecting the company. information products and, increasingly, the company as a whole.

“Coralogix is ​​a recognized leader in today’s observability market and is distinguished by its product, mission and vision,” Alec Ferro, director of Advent, said in a statement. “We are confident that Coralogix’s unique streaming data architecture and analytics pipeline will continue to transform this category with its ability to deliver superior monitoring coverage, insights and results while delivering significant cost savings. We are very excited to partner with the Coralogix management team as they continue to build on this momentum.”

“Monitoring the applications that currently drive most of our economy is a critical part of today’s software world, and Coralogix technology allows its customers to do this on a massive scale without incurring cost or compromising performance or functionality,” said Mike Gregoire, Partner in Brighton Park, in a separate application. “The Coralogix offering is incredibly powerful and we see several opportunities to expand their functionality while maintaining the fast support that their customers are used to.”

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