Israeli Cyber Firm Groundcover Reaches $500 Million Valuation
Groundcover has completed a major funding round that quadrupled its valuation, bringing total capital raised to $160 million, led by British fund One Peak and Morgan Stanley Expansion Capital.
Israeli cyber and technology company Groundcover, which operates in the field of software system monitoring and tracking (Observability), has reported the completion of a massive funding round. This milestone reflects a fourfold increase in the company's valuation compared to the previous round and brings the total capital raised since its inception to $160 million.
The current funding round was led by the British growth fund One Peak, with participation from Morgan Stanley Expansion Capital. Existing investors, including Zeev Ventures, Angular Ventures, Heavybit, and Jibe, also participated in the round.
The key to this rapid growth lies in the company's business performance over the past year. Now valued at approximately half a billion dollars, the company tripled its recurring revenue within a year, reaching a double-digit revenue figure in millions of dollars.
The firm now serves over 250 paying companies, including Fortune 500 corporations, with several deals reaching the seven-figure range.
In a world where the collapse of a commerce site or an aviation app costs millions of dollars, monitoring and tracking systems have become a critical component. In a market dominated by giants like Datadog and Cisco, Groundcover offers a distinct architectural model: storing data directly in the client's private cloud environment rather than in the provider's cloud. This approach solves a major barrier in the industry.
Traditional companies charge based on data volume, forcing customers to delete data to save costs. Groundcover's approach allows organizations to store five times more data without volume penalties.
The collected information serves as vital fuel for operating artificial intelligence agents that require continuous and comprehensive data. By eliminating the need to store data on its own servers, Groundcover maintains an impressive gross profit margin of 93%.
Groundcover was founded in 2021 by Shahar Azulay and Yehezkel Rabinovich, who met during their joint service in the Prime Minister's Office cyber unit.
The company's headcount has seen a sharp increase from 60 employees in April 2025 to approximately 140 today, with about 80 employed at the development center in Israel and the remainder in its San Francisco and Boston offices.
"We operate in an extremely competitive and intense market. The current funding gives us the tools and the ability to take calculated risks with the goal of continuing to build an independent, large, and leading company," said CEO and co-founder Shahar Azulay.
