OllyGarden raises $4M to cut telemetry waste — with Datadog and Grafana backing it
What's the deal? Berlin-based OllyGardenDealroom has a profile for this one. Try Dealroom → has raised $4 million in a seed round to cut unnecessary software telemetry — the logs, metrics, and traces that software produces. The round was led by Next Frontier CapitalDealroom has a profile for this one. Try Dealroom →, Grand VenturesDealroom has a profile for this one. Try Dealroom →, and ACTAI VenturesDealroom has a profile for this one. Try Dealroom →, with returning backers Datadog, Grafana Labs, Dash0, and DIG VenturesDealroom has a profile for this one. Try Dealroom →. Founded in 2025, the 10-person startup has now raised about $5.6 million, following a $1.6 million pre-seed in July 2025.
Why now? AI-generated code is flooding systems with noise. "The evolution of code generated by AI made it clear that bad telemetry isn't economically acceptable in 2026: 10x more code cannot mean 10x more dollars spent on observability solutions," says co-founder and chief executive officer Juraci Paixão Kröhling.
What's the endgame? OllyGarden's AI agent, Rose, examines OpenTelemetry code and submits pull requests for human approval. A new Minimum Viable Instrumentation feature extends Rose to code lacking telemetry, setting a baseline per team while keeping data volume low. The company says it has cut customers' log volume by as much as 85%, though that figure is unverified.
Why are rivals investing? Datadog, Grafana Labs, and Dash0 all run platforms that store and search telemetry, and many charge by data volume — so less data means less revenue. But all three now offer AI agents to analyse telemetry, and agents fed noisy data give unreliable results. Datadog earned $3.43 billion in 2025; Dash0 is valued at $1 billion after a $110 million round.
The track record: Kröhling, a Brazilian engineer based in Germany, worked on the Jaeger and OpenTracing projects at Red Hat before moving to Grafana Labs. He sits on the governance committee for OpenTelemetry, the open standard for collecting telemetry.
What's the money for? Engineering, go-to-market work, and expanded support for open-source projects, letting them use Rose without worrying about tokens. "Telemetry quality is a foundational enterprise problem that everyone has and nobody owns, and now AI has made it urgent," said Rytis Vitkauskas, partner at DIG Ventures.
The signal: At $4 million, OllyGarden's round sits in the top 10% of all-time seed rounds in big data. The backing from the very vendors it aims to disrupt shows how AI is reshaping observability: when automated agents act without humans to catch errors, the quality of the underlying data becomes the problem everyone needs solved.
Read more: Tech Funding News
Image credit: OllyGarden
