Observe, Data Observability Platform, Secures $115M Funding with Snowflake as Investor

Observe, a startup specializing in observability tools for machine-generated data, has secured $115 million in Series B funding, with a valuation estimated to be between $400 million and $500 million. This round was led by Sutter Hill Ventures, with participation from strategic partner Snowflake, as well as Capital One Ventures and Madrona.

Founded on the premise of breaking down data silos and providing developers with insights into app performance and usage, Observe has tightly integrated its platform with Snowflake’s data-as-a-service offering. Snowflake’s participation in the funding round underscores its strategic investment in Observe’s technology.

While Observe did not confirm the valuation figure, sources suggest it represents a significant increase from its Series A valuation four years ago, which was estimated to be under $35 million. With this latest funding round, Observe has raised a total of $205 million across various events.

The decision to raise debt in previous rounds rather than equity was influenced by market conditions, as valuations have faced pressure. CEO Jeremy Burton noted that while valuations have contracted in recent years, Observe’s focus remains on providing cost-effective solutions for enterprises grappling with data management challenges.

Enterprises are increasingly seeking cost-effective ways to manage and query data across various applications and locations. Observe’s approach of ingesting and unifying semi-structured data into a single platform aligns with this trend, offering a usage-based pricing model that enables companies to pay for what they use rather than data ingestion volume.

As the demand for data observability tools continues to grow, fueled by the complexity of modern data architectures, Observe’s strategic partnerships and innovative pricing model position it well to address the evolving needs of enterprises in this space.