According to EU-Startups, Paris-based observability platform Tsuga has emerged from stealth with €8.7 million in Seed funding led by General Catalyst with participation from Singular. The round also attracted angel investors including Amjad Masad from Replit and executives from companies like Alan, Mistral AI, and BlaBlaCar. Founded in 2024 by Gabriel-James Safar and Sébastien Deprez, who previously sold their company Madumbo to Datadog, Tsuga is building an AI-native observability platform using a Bring Your Own Cloud model. The funding will accelerate product development and expand engineering and customer success teams as data volumes grow approximately 30% annually while IT budgets increase less than 10%.
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<h2 id="european-observability-boom”>The European observability gold rush
Tsuga’s funding isn’t happening in isolation. There’s a clear pattern emerging across Europe where investors are pouring money into observability and data infrastructure startups. Sweden’s Rerun just secured €15.6 million for physical AI data tools, Ireland’s Bronto raised €12 million for log-data management, and Switzerland’s Qala AG got €1.7 million for data governance. Basically, everyone’s realizing that the current observability stack is breaking under AI-driven development pressures. Autonomous code and ephemeral microservices are generating telemetry data faster than any company can handle it.
Why this particular team might actually deliver
Here’s the thing about observability startups – everyone claims they’ll fix the problem, but most teams haven’t actually lived through the pain at scale. Tsuga’s founders aren’t newcomers to this space. They built Madumbo and sold it to Datadog, then led key initiatives there. They’ve seen firsthand how even the best tools on the market struggle with modern system monitoring. When you combine that experience with team members from Datadog, Palantir, and other infrastructure heavyweights, you get a team that might actually understand what enterprises need. They’re promising “no missing data, no runaway costs, no trade-offs between control and convenience” – which sounds exactly like what every CTO dealing with observability bills wishes for.
The BYOC model could be their secret weapon
Tsuga’s Bring Your Own Cloud approach is particularly interesting in today’s climate. Companies are getting smarter about cloud costs and data control. The traditional SaaS observability model often means sending all your data to a third party and hoping the bill doesn’t explode. With BYOC, enterprises keep their data in their own cloud environment while still getting the benefits of a modern platform. It’s a smart play at a time when cloud cost optimization has become a board-level concern. And given that data volumes are growing three times faster than IT budgets, controlling costs while maintaining visibility isn’t just nice to have – it’s becoming essential for survival.
When observability becomes existential
The company makes a compelling case that current observability tools aren’t just inefficient – they represent an “existential risk” for enterprises building AI-era applications. Think about it: if your systems are generating data 30% faster each year and your budget only grows 10%, you’re on an unsustainable path. Teams end up with fragmentation, tool sprawl, and dangerous blind spots. The promise of a “single pane of glass” has been broken for years. Now with AI development accelerating everything, the problem is reaching a breaking point. Tsuga’s timing might be perfect – enterprises are finally realizing they need a completely new foundation for observability, not just incremental improvements to what already exists.
