Chronosphere to strengthen cloud-native observability platform, raises $115M

Today, almost every enterprise is moving or looking to move from traditional monolithic apps to cloud-native environments. The shift is driven by the need for speed and scale, but it continues to be associated with one major challenge – rapidly accelerating complexity.

Essentially, the dynamic and 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 fail to deliver the insights needed to detect issues on time, leading to downtime and end customers being impacted. This ultimately affects business growth.

Enter Chronosphere’s cloud-native observability

To address this, New York-based Chronosphere offers a platform built to handle the scale and complexity of cloud-native metrics. The company today announced it has raised an additional $115 million as part of its series C round of funding.

Chronosphere’s M3 metrics engine powers the monitoring capability of the platform and allows teams to ingest and query billions of high cardinality metric data points – generated by containerized infrastructure, microservices applications and business services – every second. It analyzes the metrics, produces deep insights into every layer of the stack and triggers near-instant alerts about issues as they come up. 

The alerts go directly to relevant teams with all the context they need to rapidly triage the incident and remediate the problems before customers feel a thing. Enterprises also get a control pane where they can choose what metric and trace data should be retained, for how long and at what resolution. All of this directly translates into cost savings. 

According to a total economic impact (TEI) study conducted by Forrester, companies using Chronosphere’s platform returned on average $7.9 million in benefits over three years. During the same period, companies on average also saw $4.9 million in cost savings for 165% return on investment, with an average payback period of less than six months. 

“In a cloud-native world where businesses are looking for both efficiency and effectiveness, there’s a dire need for organizations to get observability right,” Sangeen Zeb, partner at GV, which joined the series C round, said. “Chronosphere has cracked the code to tame the data deluge in complex environments and provides better tools that quickly sift through the most meaningful data for better customer experiences and business outcomes.”

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

Plan ahead

With the additional funding, which takes Chronosphere’s total capital raised to $343 million and valuation to $1.6 billion, the company plans to drive further innovation to strengthen its platform and accelerate go-to-market efforts. 

“This funding underscores the crucial market need for powerful cloud-native observability solutions to generate positive business outcomes – especially critical now as companies seek more efficient and effective ways to improve customer experiences,” Martin Mao, Chronosphere CEO and cofounder, said. “We plan to use this latest investment to bring our forward-looking observability solution to the broader market as we continue to disrupt legacy solutions that provide too little, too late for too much cost.”

Other well-established players in the same space are DataDog, Dynatrace and New Relic.