Our Investment in Coralogix
We are incredibly excited to announce our recent investment in Coralogix, a full-stack data observability platform!
Now, we’ll get into what exactly that means shortly, but before we do, it’s important to acknowledge that this investment represents a couple of firsts in Revaia history:
- Coralogix is an 🇮🇱 Israeli-born, 🇺🇸 San Francisco-based startup — our first portfolio company outside of Europe
- This marks the very first investment of Revaia Growth II !
Company Background & Team
Ariel and Yoni, both software product management and development veterans from Verint, co-founded Coralogix in 2015 with the goal of making observability accessible to all. They built the product over two years and had their first paying customer in 2017. They raised their Series A in 2019 and have consistently received follow-on funding to support their growth. This latest round, their Series D, will inject $142M to support international development and their expansion into a full observability suite. The team is redefining the category with proprietary, ML-enabled streaming analytics technology to deliver high-resolution performance monitoring, visualization and alerts to their customers.
Key Definitions
The subject matter today is fairly engineering oriented, so let’s start with a few key definitions for the average layperson:
- Logs are computer-generated records that contain information about usage patterns, activities and operations within an operating system, application, server or any other device.
→ Logs are a core component of any software product and part of exponential data generation. Anywhere there’s a code, there’s a log!
→ Logs are useful to developers, IT operators and Engineers to monitor application performance, user behavior and detect errors and suspicious activities
- Metrics are labeled data (name, time etc.) that can be aggregated
- Traces are used to investigate system performance issues.
- Application Performance Monitoring or APM tools are powerful software analytics platforms that ingest, analyze and build context from traces, metrics and logs.
- IT observability is the process of transforming collected data from monitoring into analysis and insight.
- DevOps is a set of practices that combines software development (Dev) and IT operations (Ops).
→ It aims to shorten the systems development life cycle and provide continuous delivery with high software quality
→ Modern IT observability happening on cloud instances through SaaS solutions takes an active role in the rise of the large DevOps category
Unique Opportunity in an Expanding Category
Coralogix is building solutions for a massive and growing market broadly described as application performance management (APM). Within this category there are three key segments: logs, metrics and traces. In order to be considered a full-suite data observability platform, you need to encompass the two. In short, you can monitor real-time activity and then run analysis on the meta-data itself. This is incredibly practical for Developer Operations teams (DevOps) who are responsible for performance, monitoring and security.
Performance management and log analytics have been around for quite some time now. In fact, a few companies might be considered household names (at least in our household!). Companies like Splunk, Datadog and SumoLogic are well-known as leaders in the APM industry. But the world of IT Observability is changing, as are the needs of DevOps teams swimming in increasingly large and complex pools of structured and unstructured data. Macro tailwinds including the shift to cloud architecture, big data, real-time demands of engineering and business teams are driving transformation across the sector that legacy tools are scrambling to keep up with.
“The amount of digital data being created globally is doubling every two years, and most of it is generated by consumers in the form of movie downloads, VoIP calls, e-mails, cell-phone location readings, and so on, according to the consultancy IDC. Yet only about 0.5 percent of that data is ever analyzed.”
- Antonio Regalado, “The Data Made Me Do It,” MIT Technology Review (2013)
Coralogix Key Differentiators
There are 5 key differentiators the position Coralogix to become a dominant, global player in the space:
- Undoubtedly the biggest is their patented Streama Technology which triages data before indexing which maintains full observability while saving 70% on data storage. A legacy tool ingests → indexes → analyzes where as Coralogix analyzes and segments pertinent log data before indexing — a modern approach to observability.
- They use machine learning to proactively monitor data which improves two critical measures of performance: mean time to identification & mean time to recovery (MTTI/MTTR).
- The platform auto-scales to accommodate customer needs. Historically, you would experience data loss or throttling if you exceeded your quota. Coralogix promises no overages, throttling or data loss. Period.
- The tool is cloud native and purpose-built for modern developer teams with a continuous integration / continuous development pipeline in place
- Uses open-source syntax meaning no proprietary language or vendor lock-in
At the end of the day, Coralogix meets all the key criteria: a strong, experienced leadership team, a seasoned group of existing investors and advisors, a powerful, highly differentiated platform with wide adoption and consistent growth and a core mission to expand access to best-in-class APM software and reduce unnecessary carbon footprint stemming from legacy data storage methodologies.
We are super excited to be partner with the entire Coralogix team as they put their foot on the accelerator following this Series D round!
You can read more about their plans here
Check out the prominent press releases here (TechCrunch), here (PRS Newswire) & here (Business Insider)
