Coralogix raises $200 million betting that someone needs to monitor AI agents

CoralogicsA Boston-based software monitoring startup founded in Israel has raised $200 million in a new funding round, betting that the rise of artificial intelligence agents will boost demand for a new generation of tools to monitor, troubleshoot and manage increasingly autonomous software systems.

The Series F funding comes just 11 months after Coralogix Raised $115 million in Series E roundThis is a pace that reflects how quickly investor appetite for artificial intelligence infrastructure companies is accelerating. The new round values ​​the startup 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.

Investment comes as software companies The race to adapt to the rise of AI agentssoftware systems that can independently write code, investigate problems, and complete tasks that previously required a human engineer. Coralogix is ​​among a growing number of infrastructure companies betting that as AI systems move into production, demand will rise for tools that can monitor their behavior, troubleshoot problems, and provide the operational data needed to keep them running reliably. (The more standalone software you deploy, the more you need to know when something goes wrong and why.)

Founded in 2014, Coralogix helps companies monitor the health and performance of software systems by collecting and analyzing operational data such as logs, metrics, and traces — essentially a continuous record of what a software system does and how it behaves. The platform is used by more than 5,000 customers worldwide, including IBM, Tradeweb and JFrog, to detect outages, investigate incidents and improve applications.

The surveillance industry, where Coralogix competes with the likes of Datadog, New Relic, and Splunk, is being reshaped by the rise of artificial intelligence. Vendors are increasingly integrating AI into monitoring and incident response workflows as organizations deploy more AI-powered applications and agents.

This shift is already changing how customers interact with the Coralogix platform, co-founder and CEO Ariel Asaraf (pictured above, right) said in an interview. More than half of the startup’s customers now use either its AI agent, Olly, or their own AI models through command line and agent interfaces to investigate incidents and query operational data, he said.

“The interface layer is slowly eroding,” Al-Sarraf told TechCrunch, noting that engineers are increasingly interacting with software through AI assistants and command-line tools rather than traditional dashboards. “Most of the usage will be about ‘How do I connect my MBA to this?’ How do I run this through my command line interface?’” In plain terms, his customers are less interested in logging into the dashboard and more interested in asking the AI ​​assistant what the problem is.

This transformation coincided with Coralogix’s strong growth. Al-Sarraf said the startup has increased its revenues by more than 60% over the past year, and now has about 30 clients who spend more than $1 million annually, as it expands further into the enterprise market. Al-Sarraf added that the company exceeded $100 million in annual revenues more than a year ago, although he refused to reveal current numbers.

The startup employs more than 600 people globally, about 100 of whom are in India, home to its third-largest office after the US and Israel. The India operation has evolved into a regional hub supporting clients across Asia while helping Coralogics expand into large local institutions, including financial institutions, Al-Sarraf said.

Coralogics has not raised its shares because it needs additional runway, Al-Sarraf said, adding that the funding will be used to accelerate investment in AI-focused products, security offerings and global expansion.

“In the age of artificial intelligence, execution and speed are more important than any timely evaluation,” he said. “We wanted to accelerate, expand and take another step in this AI game that we believe we are leading in our field.”

Al-Sarraf said that Coralogics does not currently expect to raise additional capital and is working to achieve profitability over the next few years. He said the company is also preparing to operate with the financial discipline of a public company, though he stopped short of committing to a timeline for an initial public offering.