Groundcover Raises $100 Million at a $500 Million Valuation
The startup helps managers more accurately track artificial intelligence activity within their organizations. The funding round was led by the British fund One Peak.
The startup Groundcover, founded by entrepreneurs Shahar Azulay and Yehezkel Rabinovich, has raised $100 million in its Series C funding round. Industry estimates place the company's valuation at approximately $500 million.
The company, which its founders claim was built with infrastructure specifically suited for the AI era, helps development and information systems managers track artificial intelligence activity within their organizations more accurately.
The round was led by the British fund One Peak, which invests in growth-stage companies; its Israeli portfolio also includes DataRails, Coro, and Cymulate. The round also saw participation from Morgan Stanley Expansion Capital, which invested in an Israeli company for the first time, alongside initial investors: Gil Dibner’s Angular, Asaf Jacobi’s Jibe, and Oren Zeev’s Zeev Ventures.
Reducing Cloud and AI Monitoring Costs
Shahar Azulay, a veteran of Apple’s algorithms and AI division, founded Groundcover alongside Yehezkel Rabinovich, a former colleague from the Psagot program and a technology unit within the Prime Minister’s Office.
"We both used cloud and AI monitoring systems like Datadog or Grafana, and we experienced the pain of observability services where payment depends on the volume of data checked. This dependency makes these services less cost-effective. It is like paying for every WhatsApp message you send—it is clear that this is not how things should be managed," Azulay stated.
Groundcover enables development and IT managers to understand what is happening within their cloud and AI systems in real time: identifying service issues, pinpointing crashes, detecting performance bottlenecks, and analyzing the impact of malfunctions.
The company competes with observability platforms such as Datadog, New Relic, Grafana, and the Israeli firm Coralogix. According to Azulay, Groundcover’s service is tailored for the AI era, allowing for easier monitoring of AI agents and the implications of using them for software code generation, all under a more user-friendly business model.
This round brings the total capital raised by the company to $160 million. Following a year of accelerated growth, the company has tripled its revenue and doubled its workforce to 140 employees, with 80 based in Tel Aviv and the remainder in Boston and San Francisco. Today, the company serves over 250 paying customers and reports having signed several multi-million dollar contracts over the past year.
