Observe, a San Mateo, CA-based AI-powered observability platform, has raised $156 million in a Series C funding round.
Investors
The round was led by Sutter Hill Ventures, with participation from Madrona Ventures, Alumni Ventures, Snowflake Ventures, and Capital One Ventures.
Sutter Hill Ventures is a Palo Alto-based venture capital firm founded in 1964. It specializes in early-stage investments, particularly in enterprise software, AI, cloud infrastructure, and deep technology.
Observe Use of Funds
The company will use the funds to accelerate product development, enhance AI capabilities, and scale global hiring to meet increasing demand from enterprise customers.
About Observe
Observe provides AI-powered observability that unifies logs, metrics, traces, and other telemetry data into a single solution. Built on an open data lake with a proprietary Knowledge Graph and AI SRE, Observe enables users to troubleshoot faster and at significantly lower cost. Headquartered in San Mateo, California, Observe powers observability for modern SaaS and AI-native companies seeking speed, scale, and savings.
Funding Details
Company: Observe Inc.
Raised: $156.0M
Round: Series C
Funding Date: July 2025
Lead Investor: Sutter Hill Ventures
Additional Investors: Madrona Ventures, Alumni Ventures, Snowflake Ventures, Capital One Ventures
Company Website: https://www.observeinc.com/
Software Category: AI-powered Observability / DevOps
Source: https://www.prnewswire.com/news-releases/observe-closes-156-million-series-c-as-enterprises-shift-to-ai-powered-observability-at-scale-302516560.html