Observe Accelerates Business Momentum with $115M in Series B Funding

Observe, Inc., the SaaS observability company reinventing the way machine-generated data is stored, managed, and analyzed, is announcing the completion of its Series B funding round, having raised a total of $115 million. Led by Sutter Hill Ventures—with participation from existing investors Capital One Ventures and Madrona, and new investor Snowflake Ventures—the funding will be utilized to drive Observe’s growth and its SaaS observability platform.

As Observe continues its path of proprietary growth—with its Annual Recurring Revenue (ARR) increasing to 171%, Total Contract Value (TCV) increasing to 194%, and Net Revenue Retention (NRR) increasing to 174% in FY2024—the company’s recent funding will accelerate that advancement. According to Jeremy Burton, CEO at Observe, a large portion of the funding will contribute to the expansion of its sales, enterprise sales, and technical teams.

"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."

Observe’s flagship product—the Observability Cloud—consolidates and simplifies the environments in which organizations troubleshoot applications, offering both context and granularity for event data while reducing overall costs and complexity—which is particularly relevant to the bustling world of AI adoption.

"Legacy monitoring and APM players, shackled by outdated architectures, are dead companies walking," said Burton. "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."

Built atop the Snowflake database—one of the key participants in the recent funding round—the Observability Cloud benefits from the database’s unique approach to storing and querying data.

"At Snowflake we believe there's no such thing as an AI strategy without a data strategy," said Stefan Williams, VP of corporate development and 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."

The company’s funding will also drive momentum for the Observability Cloud’s two recent launches: Project Hubble and Trace Explorer.

Project Hubble, released at the backend of last year, aims to enhance the ingestion and increase the scalability of the Observability Cloud, scaling to over one petabyte per day from a single customer. Trace Explorer acts as a visualization capability for distributed traces, increasing the breadth of Oberserve’s monitoring power.

Fueled by $115 million, Observe plans to expand its market presence in North America, expecting to more than double the size of its business, according to the company. Additionally, themes around accessibility are a guiding principle for Observe’s ongoing innovation, according to Burton.

“One of the goals here is to lower the barrier to entry for folks coming to a new product,” he explained. “It's really important to make it very, very easy for people to migrate [from other tools like Datadog, New Relic, etc.]”

With investment from Snowflake Ventures, Observe also looks to encourage more Snowflake customers to use the Observability Cloud for their unstructured telemetry data needs.

To learn more about Observe, please visit