Two former Datadog engineers, who previously sold their startup to Datadog, have secured $35 million in Series A funding. Their goal is to build an observability platform that keeps telemetry data inside each customer’s own cloud.

Tsuga runs directly in the customer’s cloud account, so there’s no need to send data through a vendor’s systems. This setup avoids the per-byte fees that have made older observability platforms too expensive for today’s AI workloads.

Just six months after launching publicly, Tsuga has already brought in several million dollars in revenue, with average contracts worth six figures. Its clients include Black Forest Labs and the French media group Le Monde.

Gabriel-James Safar and Sébastien Deprez sold their startup Madumbo to Datadog in 2019. Safar became a senior director of product management, while Deprez led the engineering team for Datadog’s fourth product. After leaving in 2023, they decided the business model they helped build was outdated. In 2024, they started Tsuga in Paris and have now raised $35 million in Series A funding to bring their new idea to life.

Singular led the Series A funding round, joined by General Catalyst and new investors DST Global Partners, QuantumLight, Databricks Ventures, and Picus Capital. With this round, Tsuga’s total funding reaches $45 million, following a $10 million seed round led by General Catalyst last November.