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Observe Announces $115 Million in Series B Financing

Observe has closed a Series B funding round of $115 million led by Sutter Hill Ventures with participation from existing investors Capital One Ventures and Madrona and new investor Snowflake Ventures.

The Series B funding, raised at a valuation 10x higher than the company's Series A round four years ago, promises to further accelerate Observe's growth. In FY2024, ARR increased 171%, TCV increased 194% and NRR, an indication of a product's stickiness, increased to 174% (best-in-class is considered to be 130%). Observe's headcount increased more than 50% and the company is scaling its sales organization as many tech companies pull back.

"Legacy monitoring and APM players, shackled by outdated architectures, are dead companies walking," said Jeremy Burton, CEO at Observe. "As private equity or strategic acquirers strip them down for parts, Observe is taking a new approach designed for today's modern distributed applications and massive data volumes. We're thrilled to have investors who are thinking big and validating Observe's approach in one of the fastest-growing segments in tech."

"We believe Observe is the future of Observability and we're incredibly excited to lead the Series B round," said Mike Speiser, Managing Director at Sutter Hill Ventures. "Observe has built a world class team and delivered a product that is architecturally different to everyone else. The incredible growth in ARR and NRR is testament to the fact that this new architecture is now paying off for their customers."

"At Snowflake we believe there's no such thing as an AI strategy without a data strategy," said Stefan Williams, VP Corporate Development & Snowflake Ventures. "Observe recognized this from the outset and built a data company. Our team has worked closely with Observe as a partner since the company's founding and with this investment, we're bolstering that relationship and emphasizing our belief in Observe as the company enters its next stage of rapid growth."

"Capital One is focused on building seamless customer experiences that make banking and commerce simpler and easier -- wherever those customers are, digital or in-person," said Mark Cauwels, Managing Vice President, Enterprise Platforms Technology, Capital One. "Like many cloud-first organizations, our data volume continues to expand. Observe provides a centralized and pre-correlated data layer that meaningfully organizes telemetry data from many sources at scale, helping drive faster response times."

Observe plans to expand its market presence in North America over the coming year and expects to continue to more than double the size of its business.

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Observe Announces $115 Million in Series B Financing

Observe has closed a Series B funding round of $115 million led by Sutter Hill Ventures with participation from existing investors Capital One Ventures and Madrona and new investor Snowflake Ventures.

The Series B funding, raised at a valuation 10x higher than the company's Series A round four years ago, promises to further accelerate Observe's growth. In FY2024, ARR increased 171%, TCV increased 194% and NRR, an indication of a product's stickiness, increased to 174% (best-in-class is considered to be 130%). Observe's headcount increased more than 50% and the company is scaling its sales organization as many tech companies pull back.

"Legacy monitoring and APM players, shackled by outdated architectures, are dead companies walking," said Jeremy Burton, CEO at Observe. "As private equity or strategic acquirers strip them down for parts, Observe is taking a new approach designed for today's modern distributed applications and massive data volumes. We're thrilled to have investors who are thinking big and validating Observe's approach in one of the fastest-growing segments in tech."

"We believe Observe is the future of Observability and we're incredibly excited to lead the Series B round," said Mike Speiser, Managing Director at Sutter Hill Ventures. "Observe has built a world class team and delivered a product that is architecturally different to everyone else. The incredible growth in ARR and NRR is testament to the fact that this new architecture is now paying off for their customers."

"At Snowflake we believe there's no such thing as an AI strategy without a data strategy," said Stefan Williams, VP Corporate Development & Snowflake Ventures. "Observe recognized this from the outset and built a data company. Our team has worked closely with Observe as a partner since the company's founding and with this investment, we're bolstering that relationship and emphasizing our belief in Observe as the company enters its next stage of rapid growth."

"Capital One is focused on building seamless customer experiences that make banking and commerce simpler and easier -- wherever those customers are, digital or in-person," said Mark Cauwels, Managing Vice President, Enterprise Platforms Technology, Capital One. "Like many cloud-first organizations, our data volume continues to expand. Observe provides a centralized and pre-correlated data layer that meaningfully organizes telemetry data from many sources at scale, helping drive faster response times."

Observe plans to expand its market presence in North America over the coming year and expects to continue to more than double the size of its business.

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Misaligned architecture can lead to business consequences, with 93% of respondents reporting negative outcomes such as service disruptions, high operational costs and security challenges ...

A Gartner analyst recently suggested that GenAI tools could create 25% time savings for network operational teams. Where might these time savings come from? How are GenAI tools helping NetOps teams today, and what other tasks might they take on in the future as models continue improving? In general, these savings come from automating or streamlining manual NetOps tasks ...

IT and line-of-business teams are increasingly aligned in their efforts to close the data gap and drive greater collaboration to alleviate IT bottlenecks and offload growing demands on IT teams, according to The 2025 Automation Benchmark Report: Insights from IT Leaders on Enterprise Automation & the Future of AI-Driven Businesses from Jitterbit ...

A large majority (86%) of data management and AI decision makers cite protecting data privacy as a top concern, with 76% of respondents citing ROI on data privacy and AI initiatives across their organization, according to a new Harris Poll from Collibra ...

According to Gartner, Inc. the following six trends will shape the future of cloud over the next four years, ultimately resulting in new ways of working that are digital in nature and transformative in impact ...

2020 was the equivalent of a wedding with a top-shelf open bar. As businesses scrambled to adjust to remote work, digital transformation accelerated at breakneck speed. New software categories emerged overnight. Tech stacks ballooned with all sorts of SaaS apps solving ALL the problems — often with little oversight or long-term integration planning, and yes frequently a lot of duplicated functionality ... But now the music's faded. The lights are on. Everyone from the CIO to the CFO is checking the bill. Welcome to the Great SaaS Hangover ...

Regardless of OpenShift being a scalable and flexible software, it can be a pain to monitor since complete visibility into the underlying operations is not guaranteed ... To effectively monitor an OpenShift environment, IT administrators should focus on these five key elements and their associated metrics ...

An overwhelming majority of IT leaders (95%) believe the upcoming wave of AI-powered digital transformation is set to be the most impactful and intensive seen thus far, according to The Science of Productivity: AI, Adoption, And Employee Experience, a new report from Nexthink ...

Overall outage frequency and the general level of reported severity continue to decline, according to the Outage Analysis 2025 from Uptime Institute. However, cyber security incidents are on the rise and often have severe, lasting impacts ...