Observe, a SaaS observability company focused on transforming the management and analysis of machine-generated data, has secured $115 million in Series B funding. The round closed with a valuation 10x of its Series A.
Observe develops software-as-a-service observability tools for storing, managing, and analyzing machine-generated data and logs. Its architecture is based on a data lake for ingesting any event data and a sophisticated data graph for contextual relevance,
Observe’s approach reduces the complexity and costs associated with monitoring and Application Performance Monitoring (APM) tools, often hindered by legacy architectures.
Analysis
The substantial growth in Observe’s ARR, TCV, and, notably, its NRR of 174%—well above the industry’s best-in-class benchmark of 130%—demonstrates the company’s effective product-market fit and the “stickiness” of its offerings.
In an era where the complexity of cloud-native computing and microservice-based architectures escalates the volume and cost of telemetry data, Observe’s solution, leveraging a modern architecture inclusive of a data lake and data graph, resonates with its customers, including high-profile names like Capital One, Reveal, and Top Golf.
The backing by Snowflake Ventures, a company that places a strong emphasis on the symbiotic relationship between AI strategies and data strategies, further solidifies Observe’s foundational principle as a data-centric observability platform. This investment not only signifies a deepening of Observe’s partnership with Snowflake but also demonstrates the strategic alignment in their visions for the future of data analytics and management, a vision that readers can be optimistic about.
With plans to expand its market presence in North America and expectations to continue its rapid business growth, Observe is well-positioned to capitalize on the increasing demand for sophisticated observability solutions that cater to the complexities of modern, data-intensive applications. Observe is well positioned to be a key play in the observability space.
