Coralogix, a Boston-headquartered software monitoring startup founded in Israel, has raised $200 million in a new funding round, betting that the rise of AI agents will drive demand for a new generation of tools to monitor, troubleshoot, and manage increasingly autonomous software systems.
The Series F funding comes 11 months after Coralogix raised $115 million in a Series E round, a pace that shows just how quickly investors are eager for AI infrastructure companies. The new round is valued at $1.6 billion and was led by Advent and the Canada Pension Plan Investment Board (CPPIB), with participation from Greenfield Partners and Brighton Park Capital. The company has now raised a total of $550 million to date.
The investment comes as software companies scramble to adapt to the rise of AI agents, software programs that can automatically write code, diagnose problems, and complete tasks that once required a human engineer. Coralogix is among a growing number of infrastructure companies betting that as AI systems go into production, demand will rise for tools that can monitor their behavior, troubleshoot failures, and provide the performance data needed to keep them running reliably. (If you’re using standalone software, that’s when you need to know more about when something goes wrong and why.)
Founded in 2014, Coralogix helps companies monitor the health and performance of software systems by collecting and analyzing performance data such as logs, metrics, and traces – a continuous record of what a software system is doing and how it behaves. The platform is used by more than 5,000 customers worldwide, including IBM, Tradeweb, and JFrog, for end-to-end detection, incident investigation, and application optimization.
The analytics industry, where Coralogix competes with the likes of Datadog, New Relic, and Splunk, is being reshaped by the rise of AI. Marketers are increasingly embedding AI in monitoring and incident response as businesses deploy AI-powered applications and agents.
This change is already changing the way customers interact with Coralogix’s platform, founder and CEO Ariel Assaraf (pictured above, right) in the interview. More than half of the startup’s customers now use an AI agent, Olly, or its own AI models through command line and agent interactions to investigate incidents and query performance data, he said.
“The interface is slowly eroding,” Assaraf told TechCrunch, noting that developers are increasingly using software with AI assistants and command-line tools instead of traditional dashboards. “A lot of use will be, ‘How do I connect my LLM to this? How do I use this with my CLI?’ “Clearly, his customers are less interested in logging into the dashboard and more interested in asking the AI assistant what’s wrong.
The change coincided with Coralogix’s strong growth. The startup has grown more than 60% in revenue over the past year and now has about 30 customers who spend more than $1 million a year, Assaraf said, as it expands into the business market. The company surpassed $100 million in annual revenue over the past year, Assaraf said, though he declined to disclose current figures.
The startup employs more than 600 people worldwide, about 100 of whom are based in India, which is home to its third largest office after the US and Israel. The India operation, Assaraf said, has become a regional hub that supports customers across Asia while helping Coralogix expand into large domestic businesses, including financial institutions.
Coralogix did not propose because it needed more runway, Assaraf said, adding that the funding will be used to accelerate investments in AI-focused products, security offerings and global expansion.
“In the age of AI, execution and speed are more important than any measurement of time,” he said. “We wanted to accelerate, expand, and take the next step in this AI game that we believe is leading in our space.”
Coralogix does not currently expect to raise additional capital and is working toward profitability in the next few years, Assaraf said. The company is also preparing to work through the financial guidance of a public company, he said, although he stopped short of committing to a timeline for an initial public offering.
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