27 March 2024 — Observe, a software startup specializing in app system issue detection, secures $115 million in funding from Sutter Hill Ventures and Snowflake, bringing its total funding to $210 million.
News in Detail:
Observe, a software startup based in San Mateo, California, has announced a successful funding round of $115 million led by Sutter Hill Ventures, with participation from Snowflake’s venture capital arm, alongside existing investors Capital One Ventures and Madrona. This latest investment round brings Observe’s total funding to $210 million, showcasing strong support from both new and established investors.
The startup distinguishes itself in the competitive market for app system issue detection tools by offering a comprehensive solution that replaces traditional cloud monitoring and analytics services provided by industry giants like New Relic, Datadog, and Splunk (recently acquired by Cisco for $28 billion). Observe’s cost-effective services have attracted approximately 100 clients, including notable names such as Capital One, Reveal, and Top Golf.
Observe’s CEO, Jeremy Burton, emphasizes the company’s commitment to not only offering competitive pricing but also delivering superior performance. Burton, with extensive experience at companies like Oracle and Dell Technologies, underscores the importance of providing value beyond cost savings to customers.
Despite being a seven-year-old company that is yet to turn a profit and operating in a challenging economic environment for the cloud industry, Observe has demonstrated impressive growth. Its annual recurring revenue nearly tripled in the last fiscal year, with a net revenue retention rate of 174%, reflecting strong customer retention and expansion efforts.
Conclusion:
Observe’s successful funding round underscores investor confidence in its innovative approach to app system issue detection and its potential for continued growth in the competitive cloud services market. With strong financial backing and a commitment to delivering value to customers, Observe is poised for further expansion and success in the industry.
