Observe Inc. has secured $156 million in Series C funding, led by Sutter Hill Ventures with participation from Madrona Ventures, Alumni Ventures, Snowflake Ventures, and Capital One Ventures. The AI-powered observability company has seen its revenue triple and its enterprise customer base double over the past year, with monthly active users also tripling. Large enterprises, SaaS firms, and AI-native companies are turning to Observe to replace costlier, more complex tools like Splunk and Datadog. By pairing a cost-efficient data lake with a real-time knowledge graph and AI-driven workflows, the platform enables faster, more affordable troubleshooting.
The fresh capital will fuel product development, AI advancements, and global hiring. Customers such as Tekion, Topgolf, Dialpad, and Truveta cite Observe’s ability to unify logs, metrics, and traces into a single, scalable system—cutting troubleshooting time by as much as 30%. “Observe was the only platform that could cost-effectively handle the scale and complexity of our log aggregation needs,” said Max Wardell, Senior Engineering Manager at Dialpad. With AI reshaping the software development process, investors and customers alike see Observe positioned to meet the growing demand for cost-efficient, high-scale observability solutions.
