The archive · Developer & Business Tools · Product decision · 2024–2026
Tsuga: BYOC Observability; $45M Total
Former Datadog team's BYOC observability platform; seed €8.7M, Series A $35M.
Tsuga
What the business is
Tsuga builds an AI-era observability platform: deployed into customers' own cloud environments via Bring Your Own Cloud (BYOC), unifying logs, metrics, and traces in OpenTelemetry format, with a focus on controllable cost and data sovereignty.
How it started
In 2024, Gabriel-James Safar and Sébastien Deprez founded Tsuga in Paris; the two had previously founded Madumbo (acquired by Datadog) and later led product and engineering at Datadog. Their core judgment was that data volume had a ten-year CAGR of about 30% while IT budget growth was under 10%, AI development made telemetry explode faster, existing 'single pane of glass' promises failed, and what remained was tool fragmentation and runaway bills.
What happened
In November 2025 (2025-11), Tsuga came out of stealth and completed a €8.7M seed round led by General Catalyst, with participation from Singular and several angels (Amjad Masad of Replit, Charles Gorintin of Mistral, etc.); the team came from Cognition, Datadog, and Palantir. In June 2026 (2026-06), it raised a $35M Series A led by Singular, with General Catalyst, DST Global, Quantumlight, Picus, and Databricks Ventures participating, for about $45M cumulative; the funds were used to expand GTM and launch the platform, focusing on observability in the AI agent era.
How it ended up
Expanding: as of September 2026, the product uses BYOC plus OpenTelemetry to focus on AI-era observability; after Series A, the team expanded sales and platform implementation, and revenue and customer count have not been disclosed.
Background
Tsuga was founded in Paris in 2024 by Gabriel-James Safar and Sébastien Deprez: the two first founded Madumbo, and after the company was acquired by Datadog, they led product and engineering at Datadog. The product is an 'AI-era observability platform' deployed into customers' own cloud via Bring Your Own Cloud (BYOC), unifying logs, metrics, and traces in OpenTelemetry format, with a focus on controllable cost, scalability, and data sovereignty.
The bet is a structural mismatch: over the past decade telemetry data (logs, metrics, traces) grew about 30% per year, while IT budgets grew less than 10%; AI-driven development made telemetry from autonomous code and temporary microservices explode faster. Tsuga believes existing 'single pane of glass' promises failed; reality is tool fragmentation, runaway bills, and compliance blind spots - enterprises need an observability foundation deployed in their own environment and open-source-first.
In November 2025 (2025-11), Tsuga came out of stealth and completed a €8.7M (about $10M) seed round led by General Catalyst, with Singular participating; angels included Amjad Masad of Replit, Charles Gorintin of Alan/Mistral, Philippe Corrot of Mirakl, etc.; the team came from Cognition, Datadog, and Palantir.
In June 2026 (2026-06), the company raised an additional $35M Series A led by Singular, with General Catalyst, DST Global Partners, Quantumlight, Picus, and Databricks Ventures participating, for about $45M cumulative. The funds were used to expand sales and market actions and accelerate platform launch; the official framing was to support observability needs for 'the next generation of AI agents'.
What has to be true
- Team knows pain: Madumbo acquired by Datadog; core members saw fragmentation and runaway bills.
- Structural mismatch: telemetry grows 30% yearly, budgets <10%; usage-based billing worsens in AI era.
- BYOC plus open-source-first differentiates: deployed in customer cloud, ensuring sovereignty, governance, cost control.
- Rapid scaling: Series A within 7 months of seed; DST Global and Databricks Ventures invested.
What can be applied
Find a paradigm gap: observability demand exists, but cost model fails at new data volume; BYOC plus open-source-first turns autonomy into a selling point.
Aftermath
As of 2026-09-01: Tsuga completed a seed round (€8.7M, 2025-11) and Series A ($35M, 2026-06), for about $45M cumulative; investors include General Catalyst, Singular, DST Global, and Databricks Ventures; the funds are used for GTM expansion and platform launch, focusing on observability in the AI agent era. The company remains in early expansion and has not disclosed customer count or revenue.
Sources
- Tsuga Raises €8.7 Million to Help Enterprises Manage Exploding Data Volumes
- Tsuga: €8.7 Million Raised To Help Enterprises Manage Rapidly Increasing Data Volumes
- Paris-based observability startup Tsuga raises $35 million Series A
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