I have been working with Coralogix co-founder Ariel Assaraf since 2017, two years before we ever invested in the company. Ariel had built an excellent product and was a bonafide expert in IT observability. But I was uncomfortable that he wasn’t at the helm of the business.
In early 2019, Ariel told me that Coralogix was at a crossroads and was considering a number of different options, including selling the company. A few days later, I gave a term sheet to lead the Series A, on the condition that he would be CEO.
A year and a half later, Aleph is happy to congratulate Coralogix on their $25M Series B. I would like to share more about the company and their plans to shake up the log monitoring and IT observability market.
At its core, Coralogix has a “by engineers, for engineers” ethos and culture. Ariel, his partner Yoni Farin, and their team are obsessed with making developers’ lives better. This product-led approach to a historically sales-led market has won them the trust of world-class R&D organizations around the world, such as Monday, Postman, Fiverr and MasterClass.
Coralogix uses state-of-the-art machine learning to automatically isolate and detect logging insights and flows, with high reliability and low cost. The product philosophy is driven by Ariel and Yoni’s belief that logs are not intrinsically important — rather, the value of logs lies in the conclusions that they reliably provide. By stripping out only the relevant insights, Coralogix eliminates much of the noise and extraneous cost that arises from managing the ELK stack.
In contrast, legacy companies pass along massive computing costs to their customers to cover storage, search and visualization loads. Oftentimes, they account for 20% of a company’s overall hosting costs! In comparison to Coralogix’s approach, these classical products can be expensive and inefficient.
In the coming years, Coralogix wants to completely change how logging insights are sold and priced. Using their core IP, they plan to create the most comprehensive and useful IT observability platform in the world, as well as a unique set of developer-focused security tools.
This transformation begins with their new on-demand data processing engine. In addition to machine learning-driven insights, Coralogix can dynamically parse and route the log data itself, keeping important information in hot storage for easy access, while still reducing hosting costs on logs that are less essential. The net result: the same differentiated, Coralogix logging insights, at a substantially lower price than any competitor can offer. This resonates with customers — in just a few weeks since launch, Coralogix has replaced a number of its competitors’ $500k+ ARR contracts with this new product.
Congrats to Coralogix! We are proud to partner with this team and look forward to supporting them for years to come.