Paris-based Tsuga raises €8.7 million to help enterprises cope as data volumes grow 30% a year

Paris-based observability platform Tsuga has secured €8.7 million in seed funding, signaling growing investor interest in European startups focused on data infrastructure and AI-driven monitoring. The funding round, led by General Catalyst with participation from Singular, aims to accelerate product development and expand Tsuga's engineering and customer success teams as it brings its AI-native observability platform to market. This development aligns with a broader trend in Europe, where startups are addressing the challenges of growing data volumes, which increase by 30% annually, and the demands of the AI era. Tsuga's platform is built on a Bring Your Own Cloud (BYOC) model and an open-source-first approach, setting it apart in the market. The company’s founders previously led product and engineering initiatives at Datadog, giving them firsthand knowledge of the problems enterprises face. Early team members also come from top companies like Datadog, indicating a strong focus on technical expertise. The company aims to provide enterprises with a competitive advantage in the AI era by offering a platform that provides data control, cost transparency, and scalability. This focus on control and cost efficiency is particularly relevant for European companies, as it empowers them to benefit from cloud-native platforms while retaining ownership of their data. This approach is intended to disrupt traditional SaaS models. This funding round highlights the confidence in French DeepTech engineering teams and their ability to address critical challenges in data management. Tsuga's emergence, along with other European startups in the observability space, suggests the rise of innovative solutions tailored to the needs of modern enterprises.