Hydrolix announced the closing of an $80 million Series C investment round, led by QED Investors, joined by Blumberg Capital, Frontline Ventures, Pruven Capital and Sozo Ventures, alongside existing investors that include Akamai, AV8 Ventures, Ericsson Ventures, Nava Ventures, Oregon Venture Fund, S3 Ventures, Uncorrelated Ventures and Wing Venture Capital. Chuckie Reddy, QED partner and head of growth investments, will join the Hydrolix board as a director.
Portland-based Hydrolix solves the problem of ever-ballooning volumes of log data and an existential need to perform analytics on that data to meet demanding security, compliance and service performance expectations. The fast-growing startup has seen an eightfold sales increase in the past year, driven by these trends. Its platform transforms the economics and analytics performance of log data retention. The Hydrolix streaming data lake platform powers security, observability, e-commerce, advertising technology and other log-intensive use cases.
Investors in the Series C were drawn to the deal largely due to Hydrolix’s success in building sales momentum behind a comprehensive channel strategy. The cornerstone of that strategy is a partnership with Akamai, whose TrafficPeak offering is a white label of Hydrolix. Additionally, Hydrolix recently added Amazon Web Services as a go-to-market (GTM) partner and built connectors for massive log-data front-end ecosystems like Splunk. These and similar efforts have driven the company’s sales growth, and the Series C is intended to amplify this momentum.
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“This round builds on the discovery that 400-plus new Hydrolix customers have made in the past year,” reflected Marty Kagan, co-founder and CEO of Hydrolix. “Successful global streaming events like the Super Bowl and the Olympics, alongside cloud platform launches like AWS and integrations with ecosystems like Splunk, Databricks and Kibana have greatly expanded our availability and value proposition. This round will help extend Hydrolix availability to additional cloud platforms for the biggest security, observability, adtech and RUM platforms. We’ll also expand the sources of data we ingest while giving customers the power to maintain existing interfaces and processes. Hydrolix is radically reducing the cost to store and apply analytics to our customers’ valuable log data, and that’s propelling our tremendous growth.”
“At QED, we believe data is one of the most powerful assets to a business, especially in the fintech industry,” said QED partner and head of growth investments Chuckie Reddy. “The ability to collect, store and compress data is critical to a company’s success. It was immediately clear to us that Hydrolix leadership’s approach to the market, explosive growth and the world-class team they’ve built were providing the best solution to the market. As data needs increase geometrically, Hydrolix will be instrumental in keeping costs low and increasing the effectiveness of using that data. We are thrilled to partner with Marty and his team on the journey to bringing the Hydrolix solution to financial services and beyond.”
Each investor in the round has expertise and relationships in different vertical markets and geographies. QED brings strong financial services connections, as the firm was co-founded by Nigel Morris, co-founder of Capital One, while Pruven adds insurance, real estate and healthcare to the mix. Sozo Ventures and Frontline Ventures will help accelerate Hydrolix‘s already substantial penetration of the Asian and European markets respectively. Blumberg Capital offers expanded access to technology leaders across verticals through its global Innovation Council.
Source: PRNewswire