Today (Wednesday), Israeli startup Epsagon, which provides a cloud observability platform capable of analyzing, monitoring, detecting, and remediating different cloud issues, announces another funding round, the second in the last 6 months. The round was led by DTCP, while existing investors also got back in on the action including Lightspeed Venture Partners, USVP, and StageOne Ventures. The official investment sum was not released but the company did note that its total raised funds increased to $30 million, and considering that the last round totaled $20 million up-to-date, you can do the math on your own.
“The investors offered us money”
Epsagon’s service connects with different containers including Kubernetes, serverless architectures, and among them some of the main cloud space providers like Google, AWS Cloud, and Microsoft’s Azure. The company’s product provides distributed tracing capabilities, meaning a complete automated tracker of every application transaction over numerous servers.
The company notes that there is no product on the market quite like theirs, taking pride in the unique capability it offers, claiming that “the alternative to our product is weeks and months of hard work, implementing tracing libraries in code, while Epsagon provides a 5-minute solution with zero work needed from the client’s side.”
How does the service work?
Following an online registration process, the client chooses the different operational environments it uses and connects the accounts. Epsagon’s system then immediately scans the environment, creating a list of issues and existing notifications. The next stage enables the client to add Epsagon’s code library to the environment (can be done manually or automated using CI/CD plug-ins and code injection), which will lead to deeper data insight regarding each application’s activity, while also securing 100% of the data.
While talking to Geektime, CEO Nitzan Shapira explains that the company decided to embark on the funding round despite already raising $16 million in January: “We were advancing smoothly throughout the COVID-19 crisis and a number of investors inquired to see if we would be interested in further investment. Our pockets were already pretty full, but we decided on the round thinking we could accelerate business development, which weirdly enough saw increase in client demand.” Shapira goes on to expand, that many of the company’s clients are transitioning to the cloud due to the effects of the Novel Coronavirus which is causing system overloads.
Shapira says that closing the previous round before the COVID-19 crisis really helped the company financially, further adding that the whole cloud management industry is experiencing a rise in demand because of the ongoing pandemic. He notes both the mobile and e-commerce industries experienced a boost, saying “they are receiving a lot more traffic these days, making monitoring more critical than ever for them.”
Epsagon was founded in 2017 by Shapira and company CTO Ran Ribenzaft, and currently employs a team of 30 split between Tel Aviv, NYC, and San Fransisco offices. The company aims to use the funds to further accelerate R&D and secure talent.