Tel Aviv startup groundcover raises $100m for in-house enterprise AI monitoring
Tel Aviv-founded groundcover has secured $100 million in a Series C round led by London-based One Peak, signaling a major investor bet that enterprises will reject third-party data monitoring in favour of in-house observability.
Observability startup groundcover has raised $100 million in a Series C funding round, bringing its total capital raised to $160 million. The investment was led by London-based growth investor One Peak, with participation from Morgan Stanley Expansion Capital and existing backers Zeev Ventures, Angular Ventures, Heavybit, and Jibe.
Founded in 2021, the company sells software that allows engineers to monitor their systems in production. Unlike traditional vendors, groundcover operates on a “bring your own cloud” model, running directly inside the customer’s environment to keep telemetry data private and reduce storage costs.
This architectural shift is positioned as a direct response to the demands of artificial intelligence workloads. The company argues that legacy platforms are buckling under telemetry volumes that double every few months, often forcing clients to sample or throttle their data to manage expenses.
To capture this data without requiring code changes, groundcover relies on eBPF, a Linux kernel technology, alongside native support for the OpenTelemetry standard. Chief executive Shahar Azulay stated that the company is “the only platform to harness the potential of eBPF with the endless power of BYOC for observability.”
The new capital will largely fund the expansion of its Agent Mode feature. Azulay described this as an agentic layer designed to help engineers troubleshoot and remediate production problems, aiming to “change the way engineers and agents collaborate to bring true autonomy into production operations.”
The company claims to have more than 250 paying customers, ranging from early-stage startups to a Fortune 5 enterprise. It also reported tripling its annual recurring revenue over the past year and closing several seven-figure deals, though these figures remain independently unaudited.
For European and Israeli tech investors, the round underscores a growing appetite for infrastructure software that challenges dominant incumbents like Datadog. David Klein, co-founder and managing partner at One Peak, noted that the “AI era demands a completely different observability architecture, and groundcover is the only company that has built it.”
Most of the $100 million will be directed toward expanding groundcover’s go-to-market operations in North America. The remainder will support geographic expansion, deeper partnerships with cloud providers, and further development of its artificial intelligence capabilities.
