Chronosphere to Strengthen Cloud-Native Observability Platform, Raises $115M

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Today, nearly every business is moving or looking to move from traditional monolithic applications to cloud-native environments. This change is driven by the need for speed and scalability, but it continues to be associated with a major challenge: the rapid acceleration of complexity.

Essentially, the dynamic, interconnected nature of cloud-native architecture emits 10 to 100 times more data than traditional VM-based environments. This, combined with increased usage patterns, leads to a complicated stack. Most application and infrastructure observability tools available today do not provide the information needed to detect issues in time, leading to downtime and affecting end customers. This ultimately affects the growth of the business.

Enter Chronosphere's cloud-native observability

To solve this problem, New York-based Chronosphere offers a platform designed to handle the scale and complexity of cloud-native metrics. The company announced today that it has raised an additional $115 million in its Series C funding round.

Chronosphere's M3 Metrics Engine powers the platform's monitoring capability and enables teams to ingest and query billions of high-cardinality metric data points - generated by containerized infrastructure, applications of microservices and commercial services - every second. It analyzes metrics, produces deep insights into each layer of the stack, and triggers near-instant alerts on issues as they arise.

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Alerts go directly to the relevant teams with all the context they need to quickly triage the incident and resolve issues before customers notice anything. Companies also have a control pane where they can choose what measurement and trace data to keep, for how long and at what resolution. All of this translates directly into cost savings.

According to a Total Economic Impact (TEI) study conducted by Forrester, companies using the Chronosphere platform have reported an average of $7.9 million in profits over three years. During the same period, companies also realized an average of $4.9 million in cost savings for a 165% return on investment, with an average payback period of less than six months.

"In a cloud-native world where businesses seek both efficiency and effectiveness, organizations urgently need to achieve good observability," said Sangeen Zeb, Partner at GV, who has joins the C Series. "Chronosphere has cracked the code for taming the deluge of data in complex environments and provides better tools that quickly sift through the most meaningful data for better customer experiences and better business results."

Today, the company works with leading companies including Robinhood, Snap, Obsidian Security, Astronomer, DoorDash, Tecton, Zillow, and Visa. In the last quarter, it also tripled its ARR, achieved over 145% net revenue retention, and retained 100% of its customers.

Plan ahead

With this additional funding, which brings Chronosphere's total capital raised to $343 million and its valuation to $1.6 billion, the company plans to further innovate to strengthen its platform and accelerate its efforts of placing on the market.

"This funding underscores the market's critical need for...