Chronosphere Secures $115M in Additional Series C Funding at a $1.6 Valuation
January 11, 2023
has raised an additional $115 million Series C funding. New investors include GV
(formerly Google Ventures) and Geodesic Capital, bringing Chronosphere's total
funding to $343 million, and increasing the company's valuation to $1.6 billion.
Existing Chronosphere investors also participated in the round including:
Addition, Founders Fund, General Atlantic, Greylock, Glynn Capital, and Lux
Capital. The round will support continued innovation and go-to-market efforts
for its market-leading cloud native observability platform.
The funding comes on the heels of a record year for Chronosphere. As of their
most recent quarter, Chronosphere tripled its ARR and headcount, attained
greater than 145% net revenue retention,retained 100% of its customers, and was
named to Otta's "ROCKET LIST 2022 - 100 of the fastest-growing companies to
accelerate your career."
Chronosphere also chalked up key wins at Robinhood, Snap, Obsidian Security, and
Astronomer who join Chronosphere's growing list of enterprise customers that
include DoorDash, Zillow, and Visa.
"Chronosphere's game-changing platform gives us the visibility and control to
manage our observability data, especially with our unprecedented growth," said
Ryan Sokol, VP of Engineering at DoorDash. In fact, customers that use
Chronosphere's cloud native observability platform, which enables customers to
transform their data based on the need, context, and utility to optimize costs,
improve user experience, and solve problems faster. The average customer
optimizes their data set by 48% for significant additional cost savings.
DoorDash's success is in line with results from a recent Total Economic Impact™
(TEI) study, conducted by Forrester Consulting on behalf of Chronosphere. The
study examined cost savings and business benefits enabled by Chronosphere, and
found that customers using the company's cloud native observability platform
returned on average $7.9 million in benefits over three years. During the same
timeframe, companies on average also saw $4.9 million in cost savings for 165%
return on investment, with an average payback period of less than six months.
a cloud native world where businesses are looking for both efficiency and
effectiveness, there's a dire need for organizations to get observability
right," said Sangeen Zeb, Partner at GV. "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."
"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," said Chronosphere CEO and co-founder, Martin Mao. "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."