Logz.io Collects $23M Round Led by OpenView, Will Double Boston Staff
The flood of data flowing from machines keeps rising, and that means more demand for companies like Logz.io that aim to help IT departments effectively monitor all that information. Now, investors are pouring more money into the software firm to help accelerate its growth.
On Wednesday, Logz.io announced it raised $23 million in a Series C funding round led by Boston-based OpenView Venture Partners, with contributions from 83North, Giza Venture Capital, and Vintage Investment Partners. This marks Vintage’s first investment in Logz.io, but the others are return backers. Logz.io says it has raised $47 million from investors since it was founded in 2014 by Israel natives Tomer Levy (pictured above, right) and Asaf Yigal (left).
Logz.io helps companies track what’s going on behind the scenes with websites, apps, and other software, to avoid costly outages and other malfunctions. Every machine that runs software—computers, smartphones, tablets, smart watches, servers, and more—keeps a running log of every action it takes. The rise of mobile apps and cloud computing means devices produce a lot more data than before, making it more difficult for IT departments to keep tabs on these logs without help.
Logz.io is one of the companies that sells software to track and analyze all of this activity for businesses, ideally helping to make their operations more productive and secure. Related companies include Splunk and Sumo Logic, as well as products from big tech firms like Microsoft and CA Technologies.
Logz.io’s approach uses open-source software—specifically, the Elasticsearch, Logstash, and Kibana (ELK) stack—and offers it as a cloud service for analyzing enterprise companies’ logs. In addition, Logz.io has developed machine learning algorithms that study interactions users have with their log data. The algorithms also search the Web for known software bugs, with the goal of parsing out the log events that are important for companies and their IT departments to know about.
Logz.io seems to be gaining more traction in the marketplace. In an e-mail to Xconomy, CEO Levy says company revenues over the past year are more than triple the sales of the previous year, although he declined to share specific figures. He says Logz.io has more than 400 paying customers, including Oracle, Intel, British Airways, and Electronic Arts.
“Logz.io continues to show that it can enable some of the most data-driven companies in the world to optimize their applications and infrastructures through smart analytics on machine data,” OpenView venture partner Jim Baum says in a prepared statement.
Logz.io plans to use the cash infusion to boost sales and marketing, and continue enhancing the capabilities of its products. The company also intends to double the size of its Boston staff from 25 to 50 employees, Levy says. Logz.io currently employs 100 people across its Tel Aviv and Boston offices, according to a press release.