Israeli Startup Groundcover Raises $100 Million to Expand AI Monitoring Platform

Israeli company Groundcover has completed a $100 million funding round led by One Peak, bringing its total capital raised to $160 million. Founded in 2021 by Shahar Azulai and Yehezkel Rabinovitch, both former cyber unit veterans from the Prime Minister's Office, Groundcover develops a platform for monitoring IT systems that integrates quickly without code changes and consolidates data within the organization's own cloud environment. The company currently employs 140 people, with 80 based in Israel and the rest in Boston and San Francisco, and serves over 250 paying customers, including Fortune 500 companies.

Groundcover has experienced rapid growth over the past year, tripling its revenue and doubling its workforce. The company reported several seven-figure deals and increased revenue from existing clients during this period. Its valuation is now estimated at $500 million. Investors in the latest round include Morgan Stanley Expansion Capital, Zeev Ventures, Angular Ventures, Heavybit, and Jibe.

The newly raised funds will be used to expand Groundcover's go-to-market strategy in the U.S., hire additional staff, accelerate product development, enhance AI capabilities, and deepen partnerships with strategic partners and cloud providers. The platform addresses the growing challenge of monitoring complex AI-driven IT environments by providing comprehensive and accurate system visibility without exposing data to external parties.