Israeli Startup Groundcover Raises $100 Million in Third Funding Round

Israeli company Groundcover has completed its third funding round, raising $100 million 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 members of the Prime Minister's Office, Groundcover develops a platform for monitoring IT systems that integrates quickly without code changes and stores data securely within the client's cloud environment.

The company currently employs 140 people, with 80 based in Israel and the rest in Boston and San Francisco. Groundcover serves over 250 paying customers, including Fortune 500 companies, and has tripled its revenue and doubled its workforce in the past year. Its valuation is now estimated at $500 million. The startup has also closed multiple seven-figure deals and expanded revenue from existing clients.

The new 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 collaborators and cloud providers. Investors in the round included Morgan Stanley Expansion Capital, Zeev Ventures, Angular Ventures, Heavybit, and Jibe.

Groundcover addresses the growing challenge of monitoring complex IT infrastructures amid increasing AI integration, providing organizations with comprehensive and accurate system visibility to support AI decision-making.