Funding led by One Peak with participation from Morgan Stanley Expansion Capital brings total funding to $160 million

San Francisco - July 29, 2026

groundcover, the world's leading bring-your-own-cloud (BYOC), eBPF and OpenTelemetry (OTel)-native observability platform, today announced a $100 million Series C funding round led by One Peak, with participation from Morgan Stanley Expansion Capital and existing investors Zeev Ventures, Angular Ventures, Heavybit and Jibe.

The round brings groundcover's total funding to $160 million and follows a year in which the company tripled annual recurring revenue and doubled its global headcount.

The capital will accelerate groundcover's mission to become the world's first true observability platform built for the AI era, designed for autonomous operations, large-scale, high-fidelity telemetry, privacy and control, as observability becomes core AI infrastructure.

AI is Where Legacy Observability Breaks

Observability never caught up. The telemetry volumes required to monitor modern production environments are doubling every few months with the rapid adoption of cloud-native technologies, and are only accelerating with AI - as teams require deeper visibility into their AI stack and agentic workflows.

While telemetry keeps exploding and driving up spend, AI-native teams have a growing need for it - with new emerging use cases powering their agentic and autonomous operations. Legacy observability platforms cannot scale to this level, forcing teams to sample, throttle, silo, or see less of their telemetry data.

groundcover is designed to power the companies defining the AI era that need a fundamentally different approach. groundcover was built on top of a BYOC architecture supporting AI-scale telemetry, stored and accessed privately and securely in the cloud premises of its customers.

"The AI era demands a completely different observability architecture, and groundcover is the only company that has built it," said David Klein, Co-founder and Managing Partner at One Peak. "We believe they will define the next chapter of this category."

The Grid Beneath the Next Generation of Software

Autonomous software operations need a foundational grid, much like every modern invention needed the electricity grid that came before it. That grid is observability.

Legacy observability platforms were designed to reduce data and require heavy manual instrumentation, creating gaps that engineers might tolerate but limit the power of AI agents. An agent turning raw observability data into autonomous actions in production is only as reliable as the data grid that powers it.

groundcover built its platform for that future. Its adaptive eBPF sensor deploys in minutes with no code changes and captures full-fidelity telemetry, unsampled, across infrastructure, application and AI workloads. With native OpenTelemetry support on top of that, this highly enriched telemetry is stored in groundcover's BYOC data plane, with zero sampling or cardinality limits - creating a data foundation where both engineers and agents can reach their full potential.

"We are the only platform to harness the potential of eBPF with the endless power of BYOC for observability," said Shahar Azulay, CEO and co-founder of groundcover. "On top of that unique architecture, groundcover has built Agent Mode, our agentic experience that helps engineers surface, troubleshoot and remediate issues in production. With this round we're announcing today, we plan to change the way engineers and agents collaborate to bring true autonomy into production operations."

Momentum Across Customers, Revenue and Partnerships

groundcover's growth over the past year included more than 250 paying customers, ranging from early-stage startups to Fortune 5 enterprises. The company achieved over 3x year-over-year ARR growth, closed multiple seven-figure deals in the past 12 months, and saw strong net revenue expansion from its existing customer base.

groundcover plans to use the Series C funding to accelerate its growth and trajectory in becoming the leading AI-era observability platform. A major part of the funds will be directed towards scaling its go-to-market motion as it expands its footprint in North America, where it already displaces legacy incumbents at a growing pace. groundcover will also use the funds to expand into new geographies and deepen its partner program and co-sell activity with major cloud providers. The funds will also be used to accelerate groundcover's product roadmap, expanding its AI capabilities and core observability platform into new use cases and product offerings.

To learn more about the company's vision for the next phase of growth, read Shahar's blog post. For additional details about groundcover's observability platform for engineers and agents, visit https://www.groundcover.com and book a demo.

About groundcover

groundcover is the full-stack observability platform for engineers & agents, allowing teams to monitor everything they run in their cloud, without compromising on data, control, or cost. It's deployed inside the customer's cloud premises and provides complete visibility into applications, infrastructure, and AI workloads without operational overhead. The platform offers unlimited data coverage at a fraction of the cost of legacy observability tools. Founded in 2021, the company is backed by leading global investors, including One Peak, Morgan Stanley Expansion Capital, Zeev Ventures, Angular Ventures, Heavybit and Jibe. Learn more at https://www.groundcover.com.

About One Peak

One Peak is a leading growth equity firm with more than $4bn in assets under management that invests in technology companies in the scale-up phase. One Peak provides growth capital, operating expertise, and access to its extensive network of exceptional entrepreneurs, with a view to help transform innovative and rapidly growing businesses into lasting, category-defining leaders. In addition to groundcover, One Peak's investments include Akur8, Ardoq, Cymulate, Datarails, Deepki, Docplanner, Elliptic, emnify, Hawk, iplicit, Keepit, Lucca, Neo4j, PandaDoc, Sparta, and many others. To learn more, visit https://www.onepeak.tech.

About Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets late-stage growth equity and credit investments within technology, healthcare, consumer, and other high-growth sectors. For nearly four decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 220 companies, leveraging the global brand and network of Morgan Stanley. For further information, please visit Morgan Stanley Expansion Capital.

About Zeev Ventures

Zeev Ventures is a Palo Alto-based $2.7 AUM One Man Venture Capital firm founded by Oren Zeev. Zeev has backed category-defining companies including Navan, Tipalti, and Audible. Learn more at https://www.zeevventures.com.

About Angular Ventures

Angular Ventures is a specialist venture capital firm that partners with inception-stage, deeply technical founders across Europe and Israel to help them achieve global scale. The firm invests with high conviction in durable technologies and difficult markets, leading early, pre-consensus rounds to help enterprise software and hardware companies establish a clear trajectory toward US market leadership from day one. Angular has back companies across data infrastructure, core AI, vertical AI, enterprise security, and hard tech. Angular Ventures acts as a dedicated partner to companies building next-generation infrastructure, including Firebolt, Reco, groundcover, cruxOCM, and Blue Energy. Learn more at angularventures.com.

About Heavybit

Heavybit is the leading early-stage investor in enterprise infrastructure. Since 2013, the firm has helped launch and scale visionary technical startups, from DevSecOps and feature flagging to AI code generation and beyond. Heavybit goes hands-on from day 0, backing founders as they turn code into companies and build the future of software from the bottom up to the top down. Heavybit co-led groundcover's Seed round and sits on its board. Learn more at heavybit.com.

About Jibe

Jibe is an Israeli early-stage fund with a mission to create real human connection with founders - from team building and ideation to go-to-market and more. The fund investors count over 150 founders and builders of fast growing startups who have successfully navigated the same challenges and create a unique, supportive community for the portfolio. Jibe's portfolio includes companies such as AIdoc, Exodigo, Overwolf, Tomorrow.io, Tenzai, Zyg among many others. Their recent exits include Deci and Illumex to Nvidia and Avalor to Zscaler. To learn more, please visit https://www.jibevc.com.