Groundcover Raises $35M Series B to Disrupt Legacy APM Platforms

groundcover Co-Founders: Shahar Azulay (CEO) and Yechezkel Rabinovich (CTO)     

In the increasingly crowded world of observability software, one startup is betting that deep visibility and on-premise data control will win over enterprises looking to escape the spiraling costs and complexity of legacy platforms. Israeli startup groundcover announced Tuesday it has raised $35 million in Series B funding, led by Zeev Ventures, with participation from Angular Ventures, Heavybit, and Jibe Ventures, bringing its total funding to $60 million.

The company’s pitch is audacious: replace entrenched monitoring giants like Datadog, New Relic, and Grafana Cloud by offering a radically different architecture that gives customers control over where their data lives—without sacrificing the ease of a managed service.

“We are the only solution built with eBPF at the forefront from day one,” said Shahar Azulay, CEO and Co-Founder of groundcover. “We’re pioneering a ‘bring your own cloud’ approach that lets organizations keep their observability data on premise while enjoying the benefits of SaaS.”

Groundcover was founded in 2021 by Azulay (previously ML Manager, Apple) and Yechezkel Rabonivich (previously Chief Architect, CyberMDX). The two served together in an elite cyber unit in the Israeli Prime Minister’s office where they dealt with frustration caused by APM issues.

eBPF, or extended Berkeley Packet Filter, is a kernel-level technology that allows for high-performance, low-overhead monitoring. Groundcover uses it to pull data directly from the Linux kernel, giving developers visibility into infrastructure metrics, application logs, traces, and more—all without invasive code instrumentation.

That technical differentiation appears to be resonating. Groundcover says it has grown 500% in annual recurring revenue (ARR) since last year, with a customer base that includes Fortune 100 firms and fast-growing tech startups alike. The company now employs 60 people and is expanding aggressively in the U.S.

The migration process is often a major barrier in the observability market, but groundcover claims to have cracked the problem with an AI-powered migration tool that helps customers transfer dashboards, monitors, and data from platforms like Datadog in days, not months.

The company is currently building deeper partnerships with AWS, Google Cloud, and other infrastructure providers—seeking to embed itself into the fabric of cloud-native development at a time when the stakes for performance and cost efficiency have never been higher.

Source: CTech