Chronosphere, a cloud-native data observability company, announced Tuesday it raised $115 million in growth funding at a valuation of $1.6 billion.
The company is tacking this fresh funding to its $200 million Series C round from October 2021, when it achieved unicorn status with a $1 billion valuation. With just 80 employees at the time of its initial Series C raise, Chronosphere has since tripled its annual recurring revenue and its employee headcount.
Chronosphere now has more than 250 employees worldwide. The remote-first company is headquartered in New York and has additional hubs in Seattle and Lithuania.
The recent funding round, which included new investors like GV — formerly known as Google Ventures — and Geodesic Capital, will support Chronosphere’s continued innovation and go-to-market efforts, according to a statement.
“This funding underscores the crucial market need for powerful cloud native observability solutions to generate positive business outcomes — especially critical now as companies seek more efficient and effective ways to improve customer experiences,” Chronosphere co-founder and CEO Martin Mao said in a statement. “We plan to use this latest investment to bring our forward-looking observability solution to the broader market as we continue to disrupt legacy solutions that provide too little, too late for too much cost.”
Chronosphere was founded in 2019 by Mao and CTO Rob Skillington, who previously worked together at Microsoft and Uber. While they were at Uber, they developed M3, an open-source metrics engine that is now at the foundation of Chronosphere’s platform.
Chronosphere’s enterprise client list includes Robinhood, Snap, DoorDash, Zillow and Visa. An economic impact study conducted by Forrester Consulting on behalf of Chronosphere found that clients realized a net $4.9 million in cost savings over the course of three years. The study took into consideration the reduced staff time spent on observability administration and downtime incidents caused by poor reliability.
“In a cloud-native world where businesses are looking for both efficiency and effectiveness, there’s a dire need for organizations to get observability right,” Sangeen Zeb, partner at GV, said in a statement. “Chronosphere has cracked the code to tame the data deluge in complex environments and provides better tools that quickly sift through the most meaningful data for better customer experiences and business outcomes.”
