Data is the new oil. However, it's only worth what you do with it. A startup that built a new type of production analytics platform that allows developers, security engineers, and data scientists to monitor and understand the movement of data around their networks, announced today a round funding. This is an indication of the market demand for their technology. Coralogix, a provider of stateful streaming services for engineering teams, has raised $55 million in Series C funding.Greenfield Partners led the round, along with StageOne Ventures and Red Dot Capital Partners. Eyal Ofers O.G. was also involved. Tech, Janvest Capital Partners and Maor Ventures were also present.The company's Series C comes about 10 months after its Series B of $25m. According to our understanding, Coralogix' valuation now stands at $300 million-400 million. This is a huge jump for the startup. It has racked up some 2,000 paying clients, small teams paying $100 per year through large companies paying $1.5 million/year.Coralogix, a Tel Aviv-based company with a San Francisoc headquarters, had previously raised $10 million.Coralogix was initially founded as a platform that provided quality assurance support to R&D teams and engineering teams. This platform is still a major part of the company's business. It focuses on log analytics and metrics that are useful for platform engineers. Coralogix's tools have been used to augment threat intelligence and cloud security services. They can be used to monitor data for inconsistencies that could indicate a breach or other incident. It integrates with Alien Vault, and other security services for this purpose.The third area is still in its infancy and will be further developed. One of the benefits of this investment will be to improve Coralogix's business intelligence capabilities. This area is particularly fascinating because it affects how Coralogix works, providing analytics on data before it's indexed.Ariel Assaraf (Coralogixs CEO) said that it is about high volume but low-value data. Customers don't want to store or index the data, but they want to be able to see it live and to visualize it. We are beginning to see the potential for business information and analytics being combined to analyze sentiment and other areas.Numerous companies are providing tools to support log analytics and data observation, which is a testament to the importance of DevOps. These include Splunk, Sumo Logic and DataDog.Assaraf believes his company's uniqueness is in its approach. It has essentially created a method of observing and analysing data streams before they are indexed. This gives engineers more freedom to query the data in different ways and allows them to gain more insight, much faster. He also said that indexing can have a negative impact on latency which can lead to increased costs.Many of Coralogix' competitors believe that turning around the business's nature to concentrate on indexing first would be like completely rebuilding it, difficult at their scale (although Coralogix actually did this when it was a small company, several years back, and Assaraf assumed the CEO role). Confluent is a company Assaraf believes may be a more direct competitor.Confluent will soon be able to observability because they have streaming capabilities but not the tools that we have. Salesforce's potential move in this area underscores the changing sands of enterprise IT investment decisions.Assaraf noted that Salesforce already has Slack, Tableau and Heroku. These are the three most important tools for developers who use data to track and work with it. There were also strong rumors about Salesforce trying to buy DataDog. So we can see where they are headed. They are aware of the changes taking place. When Salesforce was first launched, all budgets were allocated to marketing and sales. You now sell to IT. Salesforce recognizes the shift to developers and is moving in that direction.This makes for an interesting future for Coralogix companies, and one that investors believe Coralogix will continue to shape.According to Shay Grinfeld (Managing Partner at Greenfield Partners), the dramatic shift in digital transformation is creating an explosion of data that has until now forced enterprises into difficult decisions about cost and coverage. Coralogix's real-time streaming analytics pipeline uses proprietary algorithms to overcome this tradeoff and help companies save significant money. Coralogix's customer list includes some of the most innovative and large companies around the globe. We were thrilled to be a partner with Ariel, the Coralogix team, and help them on their quest to redefine data observationability.
