- Developer observability solutions company Honeycomb recently announced it raised $11.4 million in funding led by Scale Venture Partners
Honeycomb — a leader in observability solutions for modern developer teams to rapidly understand and better debug production systems — recently announced it closed $11.4 million in funding led by Scale Venture Partners with participation from existing investors including Storm Ventures, eVentures, NextWorld Capital, and Merian Ventures. Along with this funding round, Ariel Tseitlin of Scale Venture Partners will be joining Honeycomb’s Board of Directors. This investment brings Honeycomb’s total funding to $26.9 million.
With this round of funding, Honeycomb plans to grow its team across all business functions especially around sales, marketing, and customer success in order to support customers and drive revenue growth. In the last 6 months, Honeycomb doubled its annual recurring revenue (ARR) and doubled the number of six-figure contracts. And the company is on pace to triple its ARR by the end of the year. By dropping the time to value for self-serve customers, the company has seen significant growth in new customers quickly onboarding within days of trialing the product.
“Looking ahead, we’re very excited for this next chapter in our history and we remain committed to delivering value to our customers,” said Honeycomb CEO Christine Yen. “We have learned so much over the last few years, and with the combination of our deep market understanding, the close relationships we have with our customers, and a rock-solid group of employees, we are very well positioned in this growing observability market. We will continue to listen to our customers’ needs and deliver the highest quality product so they can be successful and delight their customers.”
With companies across all industries are developing their own customer-facing applications, the reliability and performance of those systems are critical to revenue growth and customer loyalty. However, traditional system-level monitoring and log management tools do not help developers understand how their code is behaving in production at scale and through the experience of the end-user. And Honeycomb is committed to helping developers spend more time innovating and less time debugging in order for systems to advance and drive customer loyalty.
“Honeycomb is enabling a long-overdue shift in the way developers interact with and operate the software they build,” added Ariel Tseitlin, a partner at Scale Venture Partners. “As production systems become more complex and distributed, the company is taking advantage of the massive market opportunity and establishing itself as a leader in real-time observability. It’s no wonder developers say they can’t live without it after they try it.”
Majors and Yen launched Honeycomb in 2016 with the mission to empower engineering teams to ask new questions of their production systems and gain a deep understanding of their systems to quickly resolve issues with minimal impact. And Honeycomb’s differences lie in the way data is stored and queried — which helps cross-functional teams inspect and conduct real-time analysis on the state of production.
“Modern systems are dynamic and ephemeral, far-flung and loosely coupled; every problem is a high cardinality problem, and it is impossible to predict in advance which questions you will need to ask,” explained Charity Majors, co-founder and CTO of Honeycomb. “Honeycomb gives users the power to understand any system state without shipping new code to handle or describe that state, and that is why users love Honeycomb.”
