Hydrolix Closes $80M Series C on 8X Revenue Growth

I am pleased to announce that Hydrolix just closed an $80M funding round (Series C), building on 8x revenue growth in 2024. While we could easily turn this post into a victory lap, what’s more interesting is to connect the dots: what’s happened over the last year between our Series B funding and now, how we achieved 8x growth year over year, and what’s coming next.

From scaling our library of integrations to expanding partnerships, our focus on collaboration and growth has been key to our success.

Highlights

Revenue growth: 8x revenue growth YoY.
Observability at hyperscale: Hydrolix has become the go-to for monitoring massive, high-stakes events such as Black Friday, the Super Bowl, the Olympics, and AAA video game launches.
Deep channel partnerships: Akamai TrafficPeak, an observability solution powered by Hydrolix, saw 11x customer growth YoY, and Hydrolix was named Akamai’s 2024 North America Qualified Computing Partner (QCP) Partner of the Year.
Expanding into new clouds, including AWS: Hydrolix for AWS is a CloudFront Service Ready partner and recently joined ISV Accelerate, AWS’s main co-selling program.
Building a robust infrastructure for integrations: We released connectors for Splunk, Databricks, and Kibana in the past year—with many more integrations on the horizon.
Powering more use cases: The value of analyzing high-volume logs extends far beyond observability and cybersecurity—and we are expanding our reach to fintech, adtech, ecommerce, and beyond.
Building a team for long-term success: We’re nearing 200 employees—with a 50% increase in staffing in 2025 alone.

From The Olympics to The Super Bowl

“Months of meticulous preparations and rigorous load testing coordinated across dozens of partners can be undone in an instant without a real-time observability solution like Hydrolix that can scale with a record-breaking audience.”

Mayur Srinivasan, senior vice president, FOX

FOX Sports relied on Hydrolix to provide a smooth online viewer experience for this year’s Super Bowl. Our unique ability to scale to ingest tens of millions of log events per second from multiple sources, process the logs into a common format, and query the data within seconds sets it apart from other solutions on the market.

And it’s not just the Super Bowl. Hydrolix has become the go-to solution for some of the biggest events in the world when it comes to ingesting “mahoosive data” (100 terabytes/hour and beyond), including the 2024 Summer Olympics and cricket matches in India with 60 million viewers.

Scale doesn’t just apply to ingesting and analyzing data for events—it also means keeping that data easily and quickly available long after the event is over. We achieve this by keeping all data “hot” for queries in cost-effective storage. It’s not just about ingesting 100 terabytes in an hour—it’s about the ability to query that data six months or a year later, and to do so without blowing up budgets. As a result, enterprises can get real-time monitoring for Black Friday and they can also compare this year’s Black Friday with last year’s event to uncover new patterns and insights.

Enterprises can keep their data for longer for lower costs, thanks to our high density compression, allowing them to unlock new opportunities in areas ranging from machine learning to business intelligence.

This combination of scale, cost-effectiveness, and long-term retention is a differentiator for our 400+ customers.

Expanding Channel Partnerships

“Hydrolix embodies everything we hope for from a partner in our QCP program, working with the Akamai teams and our customers as a trusted collaborator, helping to unlock TrafficPeak’s full value.”

Dan Lawrence, vice president of global enterprise sales, cloud, Akamai Technologies

One cornerstone of our growth has been a deep and lasting partnership with Akamai. Akamai TrafficPeak is a white label observability solution powered by Hydrolix, and Akamai is also an existing investor. TrafficPeak saw an 11x growth in customers in 2024 to more than 370 customers— a big part of the reason that Hydrolix was named Akamai’s 2024 North America Qualified Computing Partner (QCP) Partner of the Year.

Navy Federal Credit Union is a TrafficPeak user that requires both reputation management and security. It uses Hydrolix to store SIEM firewall data and to monitor and troubleshoot issues with logins. It cites data granularity and query performance as keys to reducing time-to-resolution for user-reported issues. One example is when users see authentication errors. Before Hydrolix, this issue required Navy Federal to spin up a team of twenty operations and security professionals to diagnose the issue. Now, with Hydrolix, that issue is resolved in minutes and with fewer operations resources required.

Hydrolix for AWS

Over the last year, we’ve continued our expansion into other clouds. We now offer Hydrolix for AWS, a managed observability solution for enterprises to collect, store, and analyze high-volume logs. With Hydrolix for AWS, enterprises can monitor logs from CloudFront, WAF, and Elemental—with more sources coming soon. And with the ability to add custom data sources, enterprises can also use Hydrolix for AWS for business-specific use cases so that teams can quickly find and fix issues while gleaning new insights.

Hydrolix for AWS is a CloudFront Service Ready partner and recently joined ISV Accelerate, AWS’s main co-selling program.

Hydrolix is compatible with all major clouds, including AWS, GCP, and Azure, and enterprises can ingest and store their log data in multiple clouds.

Akamai TrafficPeak and Hydrolix for AWS are just the beginning—we plan to continue expanding into other clouds, building new partnerships, and expanding our existing channel relationships.

Better Together: Building a Robust Infrastructure for Log Data

Log data is most valuable when it can be used for many different use cases. It’s not just about observability and monitoring—log and event data is critical for data science, building machine learning models, and use cases ranging from fintech to cybersecurity.

Over the last year, we’ve released connectors that allow teams and enterprises to combine the scale and cost-effectiveness of Hydrolix with other major platforms.

Splunk connectors: We’ve released two Splunk connectors so that teams can ingest their log data into Hydrolix and query it directly in Splunk. Hydrolix Search for Splunk is compatible with Splunk Search Processing Language (SPL) while our JDBC connector allows teams to use SQL. With these connectors, ops and cybersecurity teams as well as other practitioners can combine Splunk searches and a UI that practitioners love with long-term, “hot” log data in Hydrolix—all while reducing the total cost of observability (TCO) by up to 6x.
Hydrolix Connector for Apache Spark: With our Hydrolix Connector for Apache Spark, teams can query their Hydrolix data from Apache Spark and Databricks, unlocking the power of Hydrolix for more use cases in machine learning, business intelligence, and data science. That includes access to vast troves of log data for machine learning models and the ability to apply business-critical data science use cases like fraud detection.
Kibana connector: Kibana, a dashboard and data visualization tool in the Elasticsearch ecosystem, is well-loved—but many enterprises are running into high costs and scalability issues with both Elastic Cloud and open source Elasticsearch deployments. Hydrolix can solve both scalability and cost issues—and with our Kibana connector, created through a partnership with Quesma, enterprises can get all the benefits of Hydrolix while continuing to use Kibana.

Our goal is to be better together by combining the power, ubiquity, and flexibility of these platforms with the scalable architecture of Hydrolix. Like an electric grid or public utility, Hydrolix is designed to power log data for the world’s biggest platforms more efficiently and at scale.

Powering More Use Cases: From Observability to Fintech

Hydrolix has always been a natural fit for use cases like observability and CDN monitoring. The ability to ingest logs from many different sources and query them in seconds—at any scale—is mission critical for teams that need to resolve issues as quickly as possible.

But we’ve also recognized from the very beginning that the use cases for Hydrolix extend far beyond observability. We’re not simply a log management solution—though Hydrolix can do that, too—but rather, a platform that combines a high-volume streaming pipeline for ingesting and transforming data with a storage infrastructure that’s flexible, cost-effective, and infinitely scalable. Add sub-second queries to the mix, regardless of whether the data queried is a minute or a year old, and Hydrolix offers value that no other platforms in the market can provide.

QED, our lead investor for the Series C round, sees tremendous potential for combining Hydrolix with fintech.

“When I co-founded Capital One, few companies at the time understood the power of capturing and analyzing data to make informed business decisions. And because customer data was so expensive to store, it was getting destroyed. We started capturing and retaining the data on our customers to harness extensive data sets and pioneered customized credit card products based on specific customer attributes. And now Capital One is poised to become one of the largest credit card issuers in the world. Today, data is generated in increasingly larger volumes to make these same business decisions, yet companies still lack cost-effective ways to store, index and query data at scale. Hydrolix has created a product to uniquely solve just this problem.”

Nigel Morris, co-founder and managing partner, QED Investors

Chuckie Reddy, QED partner and head of growth investments, will be joining the Hydrolix board as a director as we continue to expand into the fintech space.

“At QED, we believe data is one of the most powerful assets to a business, especially in the fintech industry. 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.”

Chuckie Reddy, partner and head of growth investments, QED Investors

Beyond QED, each investor in the Series C round brings fresh expertise. Pruven adds expertise in the areas of insurance, real estate, and health care.

“We are thrilled to partner with Marty and his team! Hydrolix’s groundbreaking approach to high-performance, cost-efficient data streaming and analytics is transforming the industry. Its rapid growth—at a scale rarely seen—underscores the strength of its product and the immense value it delivers to enterprise customers. We see a significant opportunity for our corporate partners in financial services to leverage Hydrolix’s solutions for data-in-motion use cases in security and observability, and we look forward to supporting the team as they continue to scale.”

Sudip Chakrabarti, partner, Pruven Capital

Frontline Ventures will help further accelerate Hydrolix’s presence in European markets.

“What attracted us to Hydrolix was not just that they have a product that’s proven itself in production on the largest global stages, but that their timing aligns with market opportunities we already identified. Hydrolix already has a strong European presence, with customers such as Volkswagen, TUI Travel, and the Paris Olympics, and we’re excited to support their continued expansion and investment across Europe.”

Brennan O’Donnell, partner, Frontline

Meanwhile, Sozo Ventures will help similarly expand Hydrolix’s presence in Asian markets.

“We’re excited to partner with Hydrolix as they accelerate their journey to becoming the category leader—both in APJ and globally—for enterprises seeking real-time insights at petabyte scale.”

Spencer Foust, managing director, Sozo Ventures

The writing is on the wall: there is tremendous opportunity in the log management market. The products that serve this market must be able to handle petabytes of data cost-effectively. Incumbent data solutions are struggling to handle the load, and runaway costs for high log volumes are leaving many enterprises with gaps in their data.

Enterprises can instead turn to Hydrolix and platforms powered by Hydrolix for a proven solution to ingest, store, and query log data at scale.

A Team Built for Long-Term Success

Our team has become the go-to platform for massive-scale, high stakes events. We’ve built a global team of data engineers and SREs that have learned the intricacies of scale in the heat of battle. That includes helping major ecommerce enterprises prevent massive DDoS attacks the last two Black Fridays, observability for major events like the Super Bowl, and supporting SIEM, observability, and real user monitoring (RUM) for the world’s leading financial institutions.

We’ve expanded our experience in the C-suite, too. Over the last year, our leadership team has grown to include CTO Todd Persen, a cofounder of Influx Data (the creator of InfluxDB, a time series database) and Era Software, which was acquired by ServiceNow, along with CFO Angela Lee and CISO Joshua Scott.

And on the engineering side, we continue to grow our talent—including with Innovation Labs, a team of creative thinkers building high-value products like our Hydrolix Connector for Apache Spark. We’re increasing the pace of integrations to further develop our ecosystem, building partnerships with new cloud providers, continuing to improve core systems, and just released Hydrolix 5.0.

We’re nearing 200 employees— with a 50% increase in staffing in 2025 alone.

Connecting the Dots: From B to C and Beyond

We’ve seen tremendous growth in the last few years, validating both the hard work our team has put in and the huge demand for our core product. So what does the future hold for Hydrolix?

The log management market is expected to grow from $2.6 billion in 2022 to $7.8 billion in 2032. Meanwhile, according to a survey of DevOps and SRE professionals, log data has grown 5x at their enterprises over the three-year period leading into 2023, and nearly a quarter of respondents (22%) experienced a growth rate of 10x or higher. According to that same survey, 37% are already seeing daily log volumes over 1 TB/day, with 12% in the 10TB-50TB range and 3% ingesting 50TB or more per day.

The products that serve this market must be able to handle petabytes of data cost-effectively. Incumbent data solutions are struggling to handle the load, leaving next-generation solutions like Hydrolix to take their place.

Meanwhile, the enterprises that find innovative new ways to harness their log data (through AI model training, deeper insights, better application performance, and more) will have a competitive edge over the enterprises that discard their data. When enterprises discard data, they’re not just discarding facts about what’s happening now—they’re also giving up on future insights that data could provide.

Log data doesn’t just provide a history—it tells a story. And it’s not just about what happened in the past. It provides the ability to make educated guesses about the future.

Based on our trajectory over the last few years, we can make an educated guess about the future of Hydrolix even without consulting the underlying logs. We see new partnerships, robust expansion in the area of integrations, and many enterprises choosing Hydrolix over incumbent solutions due to the value and scale we can provide. Because the volume of log data will just keep growing, and enterprises will need to find ways to grow with it.