Observe, an observability platform, was founded in 2017 in response to the changing nature of software observability. Companies began releasing new software versions more frequently, generating significantly more data in the process. Today, Observe is adapting to the latest technological shift: AI.
Based in San Mateo, Observe helps companies monitor their software’s status, making it easier for engineers to identify and resolve disruptions and outages. The rise of AI presents both opportunities and challenges for the company. Observe’s platform integrates AI agents to help customers detect and fix issues faster. However, AI advancements also mean companies are deploying software even more rapidly, leading to an explosion of data.
CEO Jeremy Burton explained to TechCrunch that as AI agents evolve, observability becomes increasingly complex. He predicts that in a few years, networks will host hundreds or thousands of AI agents interacting with employees or each other. While beneficial, this complexity creates challenges when troubleshooting issues.
To keep pace with industry changes, Observe introduced the Model Context Protocol (MCP) server earlier this year. This tool enables developers to access observability data directly from AI coding tools and large language models, streamlining workflows. Burton shared that some customers are already using the MCP server for advanced troubleshooting, such as analyzing tickets and suggesting problematic code—a capability that seemed like science fiction just a year ago.
Observe is also working to support Apache Iceberg, an open-source data table format that allows businesses to standardize their data. Burton noted strong customer interest in this approach, with support expected by year-end.
In 2024, the company nearly tripled its revenue and achieved a 93% gross customer retention rate, though specific figures were not disclosed. Its client base includes major enterprises like CapitalOne, Paramount, and Dialpad.
Observe recently secured $156 million in a Series C funding round led by Sutter Hill Ventures, with participation from Madrona Ventures, Alumni Ventures, and strategic investors like Snowflake. The funds will support research, development, and hiring. The company plans to launch a private preview for Apache Iceberg support soon.
Burton remarked that while Observe has made significant progress, he believes the company is just getting started.