Groundcover raises $100M Series C to scale AI-era observability
What's the deal? Groundcover, an observability startup that keeps customer monitoring data inside their own cloud, has raised a $100 million Series C led by One PeakDealroom has a profile for this one. Try Dealroom →. The round brings total funding to $160 million.
Who else is in? Morgan Stanley Expansion CapitalDealroom has a profile for this one. Try Dealroom → joined, alongside existing backers Zeev Ventures, Angular VenturesDealroom has a profile for this one. Try Dealroom →, Heavybit, and JibeDealroom has a profile for this one. Try Dealroom →.
The numbers: Groundcover says it tripled annual recurring revenue and doubled its headcount over the past year. It reports more than 250 paying customers — from early-stage startups to a Fortune 5 enterprise — and several seven-figure deals closed in the past 12 months. The figures have not been independently audited.
What does it do? Groundcover sells observability, the software engineers use to watch systems in production. Rather than sending telemetry to a vendor's cloud, it runs inside the customer's own environment under a "bring your own cloud" model, which it argues keeps data private and cheaper to hold.
The technical hook is eBPF, a Linux kernel technology. Its sensor captures full-fidelity telemetry across infrastructure, applications, and AI workloads without code changes or sampling, then pairs it with native OpenTelemetry support.
Why now? Groundcover argues observability is buckling under AI. Telemetry volumes are doubling every few months as teams demand deeper visibility into models and agentic workflows, and legacy platforms respond by forcing customers to sample or throttle data.
What's the endgame? The company's product answer is Agent Mode, an agentic layer that helps engineers surface, troubleshoot, and remediate problems in production. "We are the only platform to harness the potential of eBPF with the endless power of BYOC for observability," said chief executive Shahar Azulay. He plans to "change the way engineers and agents collaborate to bring true autonomy into production operations."
The capital is aimed mostly at North America, where Groundcover says most of it will fund go-to-market operations against incumbents such as Datadog.
The signal: Observability is fiercely competitive, with startups challenging established players like Datadog and New Relic. Groundcover is betting that AI's telemetry explosion breaks the legacy model — and that a cheaper, private, full-fidelity architecture is the wedge to win share.
Read more: groundcover.com, The Next Web, Business Wire
Image credit: Groundcover
