groundcover raises USD $100 million in Series C round

groundcover has raised USD $100 million in a Series C round, bringing the observability software company's total funding to USD $160 million.

One Peak led the investment, with Morgan Stanley Expansion Capital joining existing backers Zeev Ventures, Angular Ventures, Heavybit and Jibe.

The new capital follows a year in which groundcover tripled annual recurring revenue and doubled its global headcount. It now serves more than 250 paying customers, from start-ups to some of the world's largest enterprises.

groundcover sells observability software that companies use to monitor cloud-based applications, infrastructure and related systems. It argues that the rapid spread of cloud-native software and artificial intelligence is sharply increasing the volume of telemetry data engineering teams must collect and analyse.

AI demand

Rising data volumes have become a central part of the company's pitch to investors and customers. According to groundcover, older observability systems often rely on sampling, throttling or other limits that reduce what engineers and automated systems can see in production environments.

Its product is built around a bring-your-own-cloud model, meaning customer data stays in the customer's own cloud environment rather than being moved to a vendor-managed system. groundcover also uses eBPF, a Linux kernel technology that gathers operational data from systems, and supports OpenTelemetry, an open standard for collecting and exporting telemetry.

groundcover says this design lets customers retain full telemetry data with fewer restrictions on sampling and cardinality. It is also promoting what it calls Agent Mode, a product intended to help engineers identify, investigate and fix production issues alongside AI agents.

Investors in software infrastructure have shown growing interest in observability vendors as businesses look for ways to manage more complex cloud estates and AI workloads. The sector includes established players such as Datadog and New Relic, while newer entrants are competing on cost, deployment model and data control.

Growth plans

groundcover plans to use the Series C proceeds to expand its commercial operations in North America, enter additional markets and deepen partnerships with major cloud providers. Part of the funding will also go towards product development, including work tied to AI use cases and broader observability offerings.

The latest round comes as software companies continue to test investor appetite for infrastructure tools linked to AI adoption. For observability vendors, the case is that automated systems need broad, reliable access to operational data if they are to assist engineers or act with a degree of autonomy in live environments.

David Klein of One Peak linked the investment to that shift in how software systems are monitored and managed.

"The AI era demands a completely different observability architecture, and groundcover is the only company that has built it," said David Klein, Co-Founder and Managing Partner at One Peak.

The comment underscores the competition among software infrastructure providers to position themselves around AI operations, where claims about data quality, scale and control are becoming more prominent.

groundcover was founded in 2021. The company says its platform can be deployed without code changes and is designed to capture telemetry across infrastructure, applications and AI workloads.

Chief Executive Officer and Co-Founder Shahar Azulay said the company sees a close link between complete system data and the ability of AI tools to act effectively in production settings.

"We are the only platform to harness the potential of eBPF with the endless power of BYOC for observability," said Shahar Azulay, Chief Executive Officer and Co-Founder of groundcover. "On top of that unique architecture, groundcover has built Agent Mode, our agentic experience that helps engineers surface, troubleshoot and remediate issues in production. With this round we're announcing today, we plan to change the way engineers and agents collaborate to bring true autonomy into production operations."