How Much Did Observe Raise? Funding & Key Investors

What Is Observe?

Observe is a private company based in San Mateo, California, specializing in observability cloud solutions. The company aims to accelerate the transformation of troubleshooting applications and resolving incidents through its AI-powered platform.

Founded in 2017, Observe has grown to employ between 101 and 250 people. The company operates in various industries, including analytics, artificial intelligence, business information systems, data integration, information technology, and SaaS.

Observe's platform is designed for enterprise scale, offering features like log management, application performance monitoring, and infrastructure monitoring. The company continues to innovate in the field of AI-powered observability, having raised a Series C round in July 2025.

How Much Funding Has Observe Raised?

1. Series C
   • Amount Raised: USD 156,000,000
   • Date: July 30, 2025
   • Lead Investors: Sutter Hill Ventures
   • Participants: Madrona Ventures, Alumni Ventures, Snowflake Ventures, Capital One Ventures
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To continue investing in product development, AI innovation, and global hiring as enterprises shift to AI-powered observability at scale.
2. Series B
   • Amount Raised: USD 115,000,000
   • Date: March 27, 2024
   • Lead Investors: Sutter Hill Ventures
   • Participants: Capital One Ventures, Madrona Ventures (existing investors), Snowflake Ventures (new investor)
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand market reach and accelerate product development on Snowflake's data cloud.
3. Series A3
   • Amount Raised: USD 50,000,000
   • Date: October 5, 2023
   • Lead Investors: Sutter Hill Ventures
   • Participants: Capital One Ventures, Madrona Venture Group
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support the launch of the Hubble platform and integrate generative AI capabilities.
4. Series A2
   • Amount Raised: USD 70,000,000
   • Date: May 11, 2022
   • Lead Investors: Sutter Hill Ventures, Capital One Ventures, Madrona Ventures
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To grow the data-fueled observability platform and expand the team.
5. Venture Round
   • Amount Raised: USD 7,000,000
   • Date: June 9, 2021
   • Lead Investors: Madrona Venture Group (led by S. Somasegar)
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support continued product development and market expansion.
6. Series A
   • Amount Raised: USD 35,000,000
   • Date: October 7, 2020
   • Lead Investors: Sutter Hill Ventures (led by Mike Speiser)
   • Participants: Michael Dell, Frank Slootman, Scott Dietzen (angel investors)
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To emerge from stealth, build the initial product, and establish a market presence in observability.

Total Amount Raised: USD 433,000,000 (at least, based on disclosed funding). Current Valuation: Not publicly disclosed.

Key Investors

• Sutter Hill Ventures
  • Details: Sutter Hill Ventures is a venture capital firm that led the founding of Observe in 2017 and has participated as lead investor across every major funding round, including Series A, A2, A3, B, and C.
  • Investment Focus Areas: Early-stage companies in technology, enterprise software, and cloud infrastructure.
  • Notable Investments: Pure Storage, Snowflake, Sumo Logic.
• Madrona Ventures
  • Details: Madrona Venture Group first invested in Observe in June 2021 and has participated in every subsequent round, including Series A2, A3, B, and Series C.
  • Investment Focus Areas: Early-stage technology companies in cloud computing, AI, and SaaS.
  • Notable Investments: Amazon, Smartsheet, Redfin.
• Capital One Ventures
  • Details: Capital One Ventures joined as a new investor in the Series A2 round (May 2022) and has participated in Series A3, Series B, and Series C rounds.
  • Investment Focus Areas: Enterprise software, fintech, and data infrastructure.
  • Notable Investments: Various enterprise technology and data companies.
• Alumni Ventures
  • Details: Alumni Ventures participated in Observe's Series C funding round announced July 2025.
  • Investment Focus Areas: High-growth startups across various sectors.
  • Notable Investments: Various high-growth startups across different sectors.
• Snowflake Ventures
  • Details: Snowflake Ventures, the investment arm of Snowflake, joined as a new investor in Observe's Series B (March 2024) and also participated in the Series C (July 2025).
  • Investment Focus Areas: Data cloud, analytics, and enterprise software companies.
  • Notable Investments: Companies in the data and cloud ecosystem.

What's Next for Observe?

Observe stands at the cusp of significant growth, driven by the expansion of its Hubble platform and the integration of generative AI features. The company is poised to capitalize on the increasing demand for advanced observability solutions, with opportunities to enhance productivity and streamline data analysis. The market for observability tools is projected to grow substantially, offering a vast landscape for Observe to expand its customer base and product offerings.

Future fundraising opportunities appear promising as Observe continues to innovate and scale its operations. The successful Series A3 round and the company's growth trajectory suggest potential for additional funding rounds to support further expansion. However, challenges such as competition from established players and the need to continuously innovate will require strategic planning and execution.

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