Coralogix has raised $200 million in a Series F round, arguing that the growing use of AI agents will increase the need for tools that monitor and troubleshoot autonomous software systems.
The funding values the Boston-based company at $1.6 billion post-money.
The round was led by Advent and the Canada Pension Plan Investment Board (CPPIB), with participation from Greenfield Partners and Brighton Park Capital.
Coralogix has now raised $550 million since its founding.
The new investment comes less than a year after the company secured $115 million in a Series E round.
Betting on the AI era
Founded in Israel in 2014, Coralogix provides software observability tools that collect and analyze:
- Logs
- Metrics
- Traces
The platform helps companies monitor software performance, investigate incidents and detect outages.
Customers include:
- IBM
- Tradeweb
- JFrog
Coralogix operates in a market that includes rivals such as:
- Datadog
- New Relic
- Splunk
As enterprises deploy more AI-powered systems, observability companies are increasingly incorporating AI into their products.
Engineers are changing how they work
Co-founder and Chief Executive Ariel Assaraf said more than half of Coralogix’s enterprise customers now use either the company’s AI agent, Olly, or their own AI models to investigate problems and analyze operational data.
According to Assaraf, engineers are relying less on dashboards and more on AI assistants and command-line tools.
“The interface layer is slowly getting eroded,” Assaraf said.
“Most of the usage is going to be around, ‘How do I connect my LLM to this? How do I operate this through my CLI?'”
Revenue growth
Assaraf said revenue increased by more than 60% over the past year.
The company now has around 30 customers that each spend more than $1 million annually.
Coralogix surpassed $100 million in annualized revenue more than a year ago, though Assaraf declined to provide updated figures.
Global workforce
The company employs more than 600 people worldwide.
About 100 employees are based in India, which has become Coralogix’s third-largest office after the United States and Israel.
Assaraf said the India operation supports customers across Asia and is helping the company expand among large domestic enterprises, including financial institutions.
Focus on growth, not runway
Assaraf said Coralogix did not raise capital because it needed additional runway.
Instead, the money will fund:
- AI-related products
- Security offerings
- International expansion
“In the AI era, execution and speed matter more than any point-in-time valuation,” Assaraf said.
“We wanted to accelerate, expand, and take a further step into this AI game that we believe we’re leading in our space.”
The company does not currently expect to raise additional funding.
Assaraf said Coralogix is working toward profitability over the next few years and is preparing to operate with the financial discipline expected of a public company.
He did not provide a timetable for an initial public offering.
TL;DR:
Coralogix has raised $200 million in a Series F round at a $1.6 billion valuation. The software observability company is betting that the spread of AI agents will increase demand for tools that monitor and troubleshoot increasingly autonomous systems.
AI summary:
- Coralogix raised $200 million in Series F funding.
- The company is now valued at $1.6 billion.
- Customers include IBM, Tradeweb and JFrog.
- Revenue grew more than 60% over the past year.
- Coralogix plans to invest in AI products, security and global expansion.
