Is groundcover profitable?

No profitability has been disclosed. groundcover is a VC-backed startup that raised a $35M Series B in April 2025 (total funding $60M) and claimed ARR grew over 500% year-over-year as of that date, but no profit figures have been published.

Who are groundcover's biggest competitors?

groundcover competes with observability giant Datadog and with better-funded eBPF/BYOC challengers like Coralogix and Chronosphere. As of June 2026, Coralogix is reported to have raised roughly $200M at a $1.6B valuation, dwarfing groundcover's $60M total raised.

Could AI replace groundcover's product?

AI is disrupting the observability dashboard layer, not groundcover's core moat. Its kernel-level eBPF sensor and BYOC data-residency architecture (SOC 2 Type II, ISO 27001:2022 certified as of March 2026) resist thin-wrapper AI replacement, though rivals like Coralogix report over half of enterprise users now query via AI agents instead of dashboards.

Is groundcover a safe company to join?

groundcover has grown headcount and shipped products steadily since its April 2025 Series B ($35M, total $60M raised), with 200+ customers claimed as of April 2026. However, no Series C has been announced as of mid-2026 despite a stated US expansion push, a watch point for stability.

Who owns groundcover?

groundcover is a privately held, Israeli VC-backed company founded in 2021 by CEO Shahar Azulay and CTO Yechezkel Rabinovich, both former Israeli Prime Minister's Office cyber unit members. Lead investor is Zeev Ventures, which led both its Series A (2022) and Series B ($35M, April 2025).

How much funding has groundcover raised?

groundcover has raised $60M total, per company statements as of April 10, 2025: a $20M Series A led by Zeev Ventures in September 2022, followed by a $35M Series B also led by Zeev Ventures in April 2025, alongside a smaller earlier seed round.

Telecom operators · Israel

groundcover

groundcover.com ↗

Israeli startup selling eBPF-based cloud observability that keeps customer data in their own cloud.

Losing its protection

Assessed 22 July 2026 · Evidence as of 22 July 2026

The structural protection is eroding.

On the recordSince 22 July 2026 · Checkable from H1 2026 · Every call on the record Checkpoint: Series C round announcement or stall, 15+ months after April 2025 Series B

The call

groundcover has real customers and a genuine data-residency angle, but it is one of several funded challengers chasing the same niche while Datadog watches from above.

Groundcover sells monitoring software that watches what happens inside servers using a low-level technology called eBPF, letting customers keep their data on their own cloud instead of Groundcover's. The advantage is real: companies that need to keep data private (for rules or contracts) like this, and it is harder for competitors to copy than regular software. But Datadog, the big player, could build the same thing if it wanted to, and three or four other scrappy startups are already pitching the exact same locked-down setup. The one thing that matters now is whether Groundcover can raise new money at a high price and grab more customers before those rivals do, or whether it ends up as one small option among many that bigger companies could just buy.

Why

AI pressure: Coralogix and other AI-agent observability interfaces. Coralogix claims over half of enterprise users now investigate via AI agent, not dashboards, pushing value away from groundcover's UI layer. Could AI do the core job? Only partly.

Bigger players: Datadog. Datadog dominates observability spend and could ship a bring-your-own-cloud tier if it decides margins allow, but hasn't yet. Could a giant copy it? Probably.

What protects it. Kernel-level eBPF data capture plus bring-your-own-cloud residency, which locks in regulated customers and is hard to copy fast.

What would change this call

groundcover announces or fails to announce a Series C within 12-18 months of April 2025 Series B. shows whether investors still back its growth story and runway is secure.
Datadog launches a bring-your-own-cloud deployment tier. would erode groundcover's main compliance/residency differentiator.
Coralogix or Chronosphere announces a major win in defense, healthcare, or EU sovereignty accounts. would show a peer pulling ahead in the same BYOC niche groundcover targets.

Key numbers

$60M total raised across Seed, A, B (2025-04-10)
ARR estimates range $7.9M to $31.9M (2026-06-23)
200+ customers including Workday, Cargill (2026-04-22)

Named risks

No Series C announced as of mid-2026 despite stated US expansion burn 15 months post-Series B. Severity: high
Better-capitalized peers (Coralogix ~$1.6B valuation) pursuing identical BYOC/eBPF/AI-agent positioning. Severity: high
Third-party ARR estimates for the company range wildly from ~$7.9M to ~$31.9M, indicating unclear real scale. Severity: medium
Industry shift toward AI-agent-driven investigation could erode value of groundcover's dashboard UI layer. Severity: medium
Datadog could eventually ship a credible BYOC tier given sufficient margin tolerance. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Datadog	contesting	groundcover offers AI-powered Datadog dashboard migration tool since April 2025; Datadog remains $50B+ cap as of 2026-07
Coralogix	gaining on	Reportedly raised ~$200M at ~$1.6B valuation vs groundcover's $60M total, as of 2026-06
Chronosphere	contesting	Pitches same BYOC/eBPF wedge as groundcover in crowded cloud-native observability niche, 2026

Questions people ask

Is groundcover profitable?: No profitability has been disclosed. groundcover is a VC-backed startup that raised a $35M Series B in April 2025 (total funding $60M) and claimed ARR grew over 500% year-over-year as of that date, but no profit figures have been published.
Who are groundcover's biggest competitors?: groundcover competes with observability giant Datadog and with better-funded eBPF/BYOC challengers like Coralogix and Chronosphere. As of June 2026, Coralogix is reported to have raised roughly $200M at a $1.6B valuation, dwarfing groundcover's $60M total raised.
Could AI replace groundcover's product?: AI is disrupting the observability dashboard layer, not groundcover's core moat. Its kernel-level eBPF sensor and BYOC data-residency architecture (SOC 2 Type II, ISO 27001:2022 certified as of March 2026) resist thin-wrapper AI replacement, though rivals like Coralogix report over half of enterprise users now query via AI agents instead of dashboards.
Is groundcover a safe company to join?: groundcover has grown headcount and shipped products steadily since its April 2025 Series B ($35M, total $60M raised), with 200+ customers claimed as of April 2026. However, no Series C has been announced as of mid-2026 despite a stated US expansion push, a watch point for stability.
Who owns groundcover?: groundcover is a privately held, Israeli VC-backed company founded in 2021 by CEO Shahar Azulay and CTO Yechezkel Rabinovich, both former Israeli Prime Minister's Office cyber unit members. Lead investor is Zeev Ventures, which led both its Series A (2022) and Series B ($35M, April 2025).
How much funding has groundcover raised?: groundcover has raised $60M total, per company statements as of April 10, 2025: a $20M Series A led by Zeev Ventures in September 2022, followed by a $35M Series B also led by Zeev Ventures in April 2025, alongside a smaller earlier seed round.

Timeline

2026-04-22Expanded AI Observability to Google Vertex AI and Azure Agent Mode; cited 200+ customers
2025-10-21Named a Gartner Cool Vendor in Container Management
2025-08-19Launched zero-instrumentation LLM Observability for OpenAI and Anthropic workflows
2025-07-14Named Honorable Mention in Gartner Magic Quadrant for Observability Platforms
2025-05Launched MCP server for LLM-driven querying of observability data
2025-04-10Raised $35M Series B led by Zeev Ventures, total funding reaches $60M
2022-09-14Raised $20M Series A led by Zeev Ventures
2021Founded in Tel Aviv by Shahar Azulay and Yechezkel Rabinovich

Revision history

22 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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