The Israeli start-up for systems monitoring Corlogix Announced today (Wednesday) the raising of $ 142 million. Most of the raising amount will go to the company but the round also includes scandalous, sale of shares by existing shareholders.
Until a few months ago such raising was considered a standard matter, nothing special, but Korlogics completed it in early May, while the start-up investment market entered a significant slowdown in the impact of declines in Wall Street technology stocks, inflation, rising interest rates and the war in Ukraine.
According to Corlogics CEO Ariel Asraf, the recruitment was not eIt is particularly difficult and lasts a month until the memorandum of understanding is received and another month for final closure. “Venture capital funds still have money, they have only become more selective in its distribution,” he says. “But we are a company that does deep tech and has complex intellectual property. We work in a market based on a product that every company uses. We are a company that makes a lot of money and has Unit Economics (unit economy), an efficient company that does not burn cash with significant profit margin. “.
Asraf does not provide figures on the company’s revenues or value and is content to say that “we have grown by 150% in the last 12 months.” Including the current round, Corlogix has raised $ 238 million, but as mentioned some of the current round will go to Scandry. The company was founded in 2014 by Asraf and Yoni Perrin (VP of Technology) and employs about 180 people.
“Save storage space”
Corlogics competes in the Observability market, which indeed every company that operates a system or software and wants to monitor their performance needs its services, but this market is also full of competitors. The company specializes in collecting, sorting and analyzing machine information emitted by computer software and systems, such as logs (textual documentation of every action on a computer), matrices (numerical metrics) and traces of use (Traces). Based on this collection and analysis, the system sends alerts that something is not working related and then helps the developers interrogate the performance in real time. Corlogics began from analyzing logs and expanding into the other worlds.
The veteran player in the market is Splank, Which was established in 2003 and is currently worth $ 16.5 billion on the stock exchange. Splank is considered a player who works with older, older entities like banks for example. He is a younger player Data Dog, A public company that was established in 2010 and is worth about $ 30 billion. Another public actor is New Relic Compare over $ 3 billion. It is the fourth public company in the market worth a little less than $ 6 billion Elastic The Dutch, among its Israeli founders Shai Benon. The Israeli Logz.io also operates in the field.
Tal Slobodkin, partner in the Stage One Foundation and director of Korlogogics / Photo: Dudi Moskowitz
Korlogics’ specialty is primarily in large corporations with contracts that can reach hundreds of thousands of dollars a year. What can Corlogics offer in a world with so many competitors? According to Tal Slobodkin, a partner in the Stage One fund and a director at the company, “The uniqueness of Korlogics is that it analyzes the logs on arrival, without having to physically save them. This reduces the storage volume that customers have to pay ten times and reduces costs. It also Improves speed and stability. “
Entered the world of security
The world of observability has merged in recent years with the world of security. Cyber companies like Sentinel One andCrowd Strike Startups have already been acquired from the worlds of observation, to improve the coping and analysis of data from various sources for identifying intrusions and attacks. Observation companies also collaborate with cyber players to offer a solution that knows how to collect and analyze information from all of the organization’s security systems. Korlogics also established a security division in March, which operates and is managed from Tel Aviv and New Delhi, India.
According to Asraf, “Our goal right now is to grow and see how we sell the four products we have. We need to remember that three years ago we were a company of 11-12 people, so there is a big challenge in preserving the culture of the company as we grow.”
The current round was led by Advent and Baritone Park Capital. It was also attended by Revaia Ventures and existing investors Stage One, Red Dot Capital Partners, Greenfield Partners, the OG Tech Fund of Eyal Ofer, Joule Ventures and Maor Investments.