Observability startup Coralogix Ltd. today announced that it has closed a $142 million funding round led by Advent International and Brighton Park Capital.
The two investment firms were joined by more than a half-dozen other backers. The round, which comes less than a year after Coralogix’s previous raise, brings its total outside funding to $238 million.
Coralogix provides an observability platform that organizations use to find and fix technical issues in their information technology infrastructure. The platform also provides features for detecting cyberattacks. Coralogix says that it has more than 2,000 customers including Capgemini SE, cybersecurity unicorn Armis Inc. and Monday.com Ltd.
Coralogix finds technical issues by analyzing the automatically-generated data produced by a company’s IT systems. According to the startup, its platform processes this data using an internally developed analytics engine called Streama, which it promises will help organizations reduce their IT monitoring costs by up to 70%.
Streama uses machine learning to organize the information that a company collects from its IT systems. Data that may be needed for troubleshooting purposes is kept in speedy flash storage, which enables administrators to quickly search the data for clues about the cause of a technical issue. Less important information that isn’t searched often is stored on slower, less expensive storage hardware to reduce costs.
According to Coralogix, data that isn’t frequently searched usually represents about 80% of the information collected by a company’s observability platform. Moreover, 20% of that infrequently used data comprises records that are collected mainly for regulatory compliance purposes. Coralogix’s platform can send such records to a company’s archiving environment to free up flash storage capacity for higher-priority data.
“Our approach at Coralogix is to solve the fundamental challenges of ever-growing data volumes and system complexity,” said Coralogix Chief Executive Officer Ariel Assaraf. “Our technology breaks the unit economics of observability to provide our customers with a cost-effective way to centralize and scale across the R&D organization.”
Coralogix’s platform can ingest multiple types of IT data. It’s capable of collecting logs, records that describe specific events such as a server outage, as well as metrics, data points used to track trends such as how a server’s performance changes over time. Coralogix can also process traces, which developers rely on to troubleshoot complex applications that comprise multiple software components.
For cybersecurity teams, Coralogix’s platform provides tools that can be used to detect potentially malicious activity in the corporate network. In March, the startup expanded its focus on the cybersecurity market by launching a new venture called Snowbit. The venture will use Coralogix’s platform to provide managed extended detection and response services.
The launch of Snowbit is not the only business milestone that preceded today’s funding announcement. According to Coralogix, it signed up a number of major “hypergrowth and enterprise customers” in the year leading up to the investment. Coralogix will use the new funds to further grow its installed base by expanding its go-to-market and product teams.
“Monitoring the applications that now orchestrate much of our economy is a critical piece of the modern software world, and Coralogix’s technology enables its customers to do this at a massive scale without incurring excessive costs or compromising performance or functionality,” said Brighton Park Capital partner Mike Gregoire. “Coralogix’s offering is incredibly powerful, and we see several opportunities to grow their functionality.”
Coralogix is the latest in a series of observability startups to have announced nine-figure funding rounds over the past few weeks. Cribl Inc., which provides a platform that helps companies more efficiently process observability data, closed a $150 million investment a few days ago. Grafana Labs Inc. raised $240 million from investors in April.