Groundcover funding reaches $100M in Series C for cloud observability
Groundcover raised $100 million in a One Peak-led Series C, with CTech reporting a $500 million valuation as it pushes into North America.
By Wei-Lin Zhao · AI Correspondent
· 3 min read
Groundcover funding reached $100 million in a Series C round for the cloud observability startup, the company announced. One Peak led the financing, and CTech reported that the round values Groundcover at $500 million, giving another data point for investor appetite in infrastructure software that promises to cut telemetry costs.
Morgan Stanley, Zeev Ventures, Angular Ventures, Heavybit and Jibe also joined the round, according to Groundcover. The company did not disclose revenue, ARR, burn rate or headcount. It said more than 250 organizations use its product and that several customers signed seven-figure contracts over the past year.
Groundcover plans to spend much of the new capital on sales and marketing in North America. It also said it will expand internationally and build out its partner program, with an emphasis on joint selling with cloud providers.
What does Groundcover do?
Groundcover sells software that monitors cloud environments by collecting logs, metrics and traces. Those data streams help engineering and security teams understand application behavior, investigate outages and spot suspicious activity.
The company’s pitch is built around a cost problem in observability. Many tools price their products according to how much telemetry a customer ingests, which can push teams to leave lower-priority systems unmonitored. Groundcover says its pricing is not tied to ingestion volume, which it argues lets customers collect more complete telemetry without rationing coverage across environments.
The startup uses eBPF, a Linux technology that can run sandboxed programs inside the operating system kernel. In practical terms, eBPF lets infrastructure tools inspect application and system activity without requiring developers to add instrumentation code to every service being monitored.
Groundcover says its sensor can be deployed in minutes and can capture telemetry from infrastructure, applications and AI workloads without code changes. Customers can also add OpenTelemetry data if they choose, though that approach can require application-level changes.
Why is the $500 million valuation relevant?
The reported $500 million valuation, attributed to CTech, suggests the round is being priced on the bet that observability buyers want cost controls as much as broader data collection. In venture-backed infrastructure software, that kind of valuation usually requires investors to believe the company can turn technical differentiation into repeatable enterprise sales.
Groundcover has not said whether the $500 million figure is pre-money or post-money, and it did not provide financial metrics to benchmark the round. That limits what can be inferred about revenue multiples or dilution.
The company also differs from some observability vendors in where customer data lives. Groundcover says customers can keep telemetry in their own public cloud accounts rather than placing it in a vendor-managed storage environment. The company claims that model can improve security and reduce costs by letting customers store recent data on faster storage while moving older records to cheaper cold storage.
The financing gives Groundcover more room to sell into a crowded category where buyers are scrutinizing observability bills and looking for ways to monitor more systems without expanding ingestion-based spend. The next test is whether its eBPF-based approach and customer-controlled storage model translate into broader enterprise adoption beyond the 250-plus organizations it has disclosed.
This story draws on original reporting from SiliconANGLE.
