Tsuga Raises €8.7 Million Seed to Launch AI‑Native Observability Platform for Modern Enterprises
Paris‑based tech startup Tsuga has emerged from stealth with a €8.7 million ($9–10 million) seed funding round that underscores growing investor enthusiasm for next‑generation observability solutions tailored to the AI era. The financing, announced in November 2025, will be used to accelerate product development, expand engineering and customer‑success teams, and bring Tsuga’s AI‑native platform to market as enterprises struggle with skyrocketing telemetry data volumes.
Founded in 2024 by cloud infrastructure veterans Gabriel‑James Safar and Sébastien Deprez, Tsuga aims to redefine how organisations monitor, analyse and act on logs, metrics and traces — the core data that drives observability. The company’s platform is built on a Bring‑Your‑Own‑Cloud (BYOC) model that deploys directly within a customer’s cloud environment, giving businesses full control over their data, governance and costs while leveraging scalable AI‑driven insights. Tsuga’s founders and early team bring deep experience from leading infrastructure firms, including prior roles at Datadog, where they helped solve observability challenges at scale.
The seed round was led by General Catalyst, a global investment firm known for backing transformative technology companies from early stages through growth. Joining the round was Singular, a venture capital firm focused on early‑stage startups. Tsuga also attracted participation from several prominent angel investors, including Amjad Masad — co‑founder of Replit; Charles Gorintin — associated with companies like Alan and Mistral AI; Jonathan Benhamou — founder of Resilience; Olivier Bonnet — co‑founder of BlaBlaCar; and Philippe Corrot — co‑founder of Mirakl.
With the new capital, Tsuga plans to drive product innovation and market expansion amid a landscape where observability has become mission‑critical for modern software architectures. Enterprises now generate telemetry data — the logs, metrics and traces that reflect system performance — at roughly 30 % annual growth rates, while IT budgets have increased at far lower rates, creating pressure on traditional observability solutions. Tsuga’s platform is designed to handle these demands without the runaway costs and data governance challenges typical of legacy SaaS monitoring tools.
Tsuga’s BYOC approach gives engineering teams the ability to leverage their own cloud infrastructure — whether on AWS, Google Cloud or Microsoft Azure — while retaining full control over sensitive operational data and avoiding vendor lock‑in. By running directly within a customer’s cloud account, the platform ensures compliance with corporate and regulatory policies and simplifies security and retention management. This architecture also enables more transparent and predictable cost scaling, helping organisations avoid the exponential billing patterns that can accompany hosted observability services.
The startup stresses its open‑source‑first philosophy, building on standards such as OpenTelemetry and other open data formats so that customers can route telemetry into broader analytics and AI workflows as needed. Tsuga positions itself as combining the ease of a SaaS experience with the control and governance traditionally associated with on‑premises solutions, offering a unified observability layer that scales with modern cloud‑native systems.
Tsuga’s platform appeals to teams operating complex microservices, dispersed cloud environments and AI‑centric software stacks — all areas where existing observability tools can fall short. The founders contend that current tools often force trade‑offs between control, cost and convenience, leaving engineering teams with blind spots and fragmented toolchains. Tsuga’s vision is to “see everything, without compromise,” delivering comprehensive visibility, intelligent alerts, and deeper contextual insights that help organisations proactively resolve issues and improve system reliability.
The company’s seed funding round places Tsuga alongside a broader wave of European infrastructure startups attracting capital around observability, telemetry and AI‑driven data infrastructure. With strong backing from both institutional and angel investors, Tsuga is now positioned to expand its reach beyond Europe, targeting customers in North America and other regions where cloud‑native observability needs continue to expand rapidly.
As Tsuga moves into 2026, the startup will focus on growing its engineering and product teams, refining its AI‑native observability capabilities, and scaling customer adoption. In a technology landscape where organisations increasingly prioritise full‑stack observability, data governance, and cost‑efficient monitoring, Tsuga’s funding success reflects a broader shift toward tools that deliver high‑performance insights while giving customers sovereignty over their data infrastructure.
