Coralogixa Boston-based software monitoring startup founded in Israel has raised $200 million in a new round of funding, betting that the rise of artificial intelligence agents will drive demand for a new generation of tools to monitor, troubleshoot and manage increasingly autonomous software systems.
The Series F funding comes just 11 months after Coralogix raised $115 million in a Series E round, a pace that reflects how quickly investor appetite for AI infrastructure companies has accelerated. The new round values the startup at $1.6 billion post-money and was led by Advent and the Canada Pension Plan Investment Board (CPPIB), with participation from Greenfield Partners and Brighton Park Capital. The company has now raised a total of $550 million to date.
The investment comes as software companies struggle to adapt to the rise of AI agents, software systems that can autonomously write code, investigate problems and complete tasks that would previously have required a human engineer. Coralogix is among a growing number of infrastructure companies betting that as AI systems move into production, demand will increase for tools that can monitor their behavior, deal with failures and provide the operational data needed to keep them reliable. (The more self-contained software you develop, the more you need to know when something goes wrong and why.)
Founded in 2014, Coralogix helps companies monitor the health and performance of software systems by collecting and analyzing operational data such as logs, metrics and traces — essentially a continuous record of what a software system is doing and how it’s behaving. The platform is used by more than 5,000 customers worldwide, including IBM, Tradeweb and JFrog, for outage detection, incident investigation and application optimization.
The observability industry, where Coralogix competes with companies like Datadog, New Relic and Splunk, is being reshaped by the rise of artificial intelligence. Vendors are increasingly incorporating AI into their incident monitoring and response workflows as enterprises deploy more AI-powered applications and agents.
The change is already changing the way customers interact with Coralogix’s platform, co-founder and CEO Ariel Assaraf (pictured above right) said in an interview. More than half of the startup’s business customers now use either its AI agent, Olly, or their own command-line AI models and agent interfaces to investigate incidents and search for operational data, he said.
“The interface layer is slowly eroding,” Assaraf told TechCrunch, noting that engineers are increasingly interacting with software through AI assistants and command-line tools instead of traditional dashboards. “Most of the use will be, ‘How do I connect my LLM to this?’ How do I make it work through my CLI?” Simply put, his customers are less interested in logging into a dashboard and more interested in asking an AI assistant what’s wrong.
The shift coincided with strong growth for Coralogix. The startup has grown revenue by more than 60 percent in the past year and now has about 30 customers who spend more than $1 million a year, Assaraf said, as it expands further into the enterprise market. The company topped $100 million in annual revenue more than a year ago, Assaraf added, though he declined to disclose current figures.
The startup employs more than 600 people worldwide, with about 100 based in India, where it has its third-largest office after the US and Israel. The India business, Assaraf said, has grown into a regional hub that supports customers across Asia while helping Coralogix expand into large domestic businesses, including financial institutions.
Coralogix did not pump because it needed additional runway, Assaraf said, adding that the funding will be used to accelerate investments in AI-focused products, security offerings and global expansion.
“In the age of artificial intelligence, execution and speed matter more than any time valuation,” he said. “We wanted to accelerate, expand and take a further step in this AI game that we believe is leading the way in our space.”
Coralogix does not currently expect to raise additional capital and is working toward profitability in the coming years, Assaraf said. The company is also preparing to operate with the financial discipline of a public company, he said, though he stopped short of committing to a timeline for an initial public offering.
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