Tsuga Raises €30 Mn in Series A Round

The round was led by existing investor Singular, with participation from General Catalyst. New investors DST Global Partners and Quantumlight also joined the round, along with Picus and Databricks Ventures.

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The company plans to use the new funding to expand its go-to-market efforts and speed up the development and deployment of its AI agent platform.

“The incumbents built good businesses on a model that no longer works. Sending your telemetry to a vendor’s cloud made sense when data volumes were manageable and AI was not writing and deploying your code. Neither of those things is true any more. Every customer we speak to is paying more for observability than they were two years ago and getting less reliable coverage. We built Tsuga to end that,” says Gabriel-James Safar, co-founder and CEO, Tsuga.

“By staying out of the data path entirely, Tsuga removes every structural disadvantage the rest of the market is built on. The infrastructure tax disappears. The sampling compromise disappears. The AI governance gap disappears. What is left is a better platform at a lower cost, inside the customer’s own environment,” adds Henri Tilloy, Partner at Singular.

“Tsuga has the architectural scalability, flexibility and distributed platform support that the coming generation of AI-native applications and agents require in their observability platform. This is a step-function change only possible because of their innovation across the full stack, from the storage layer to the business model,” says Alexandre Momeni, Partner of General Catalyst.

Founded in 2024, Tsuga's platform runs directly inside a customer's own cloud environment, allowing companies to keep full control of their data. Because the data stays within the customer's infrastructure, the platform can help reduce infrastructure costs and enable AI to analyze complete datasets rather than sampled data.

Just six months after emerging from stealth mode, Tsuga has grown to several million dollars in revenue and secured high-value contracts worth hundreds of thousands of dollars on average. Its customers include AI companies such as Black Forest and enterprise organizations like Le Monde, Camunda, and Buk.

According to Tsuga, the traditional observability industry relies on collecting customer data, storing it in third-party cloud platforms, and charging higher fees as data volumes increase. The company aims to offer a more efficient alternative by keeping data within the customer's own environment.