CloudZero Raises $32 Million To Transform Cloud Cost Management
On the back of another year of triple-digit growth, CloudZero announced today that it closed $32 million in Series B funding to expand its cloud cost intelligence platform. The round was led by Innovius Capital and Threshold Ventures with continued support from existing investors Matrix Partners, Underscore VC, and G20 Ventures. As part of the financing, CloudZero welcomes Justin Moore from Innovius Capital to its board of directors and Arpit Mittal from Threshold Ventures as a board observer.
In a world where every business is focused on driving cost savings, CloudZero is addressing one of the largest and most opaque expense buckets for modern organizations — cloud spend — which will reach nearly $600 billion worldwide in 2023. That is why 73% of companies surveyed identify cloud costs as a board-level issue.
CloudZero's unique ability to provide granular insights for any cloud provider empowers software teams to collaboratively manage cloud spend down to how a specific product feature or customer impacts margin. This means engineering teams can see real-time, hourly data showing the consequences of software development decisions and can proactively optimize costs before waste occurs — something no other cost management solution can provide.
"Cost management is a challenge for every business that leverages the cloud. Most vendors in the market address small pieces of the overall problem, only providing surface-level insights into underlying cost drivers," said Justin Moore, CEO of Innovius Capital. "We were looking to invest in a company that unified all sources of cloud costs into a single platform that was granular enough to help an individual engineer identify the exact line of code or SQL query that was spiking costs, yet broad enough to help finance and operations accurately understand and forecast the company's unit economics. We found that platform in CloudZero."
Unlike other solutions on the market, the CloudZero platform provides:
CloudZero AnyCost™ ingests 100% of cloud spend (IaaS, PaaS, SaaS) in real time, normalizes it in a common data model, and presents it in a single pane of glass. This gives every stakeholder the most complete, accurate, and granular source of truth.
CloudZero CostFormation® combines billing and telemetry data to allocate every penny of taggable and untaggable spend — including shared resources, multi-tenant architecture, and Kubernetes. This enables software teams to understand what is driving their spend — customers, features, teams, microservices, etc. — and minimize time spent on manual tagging or in spreadsheets.
CloudZero makes it easy for engineers to optimize the fixed and variable costs associated with their cloud consumption, including AI-powered anomaly detection. This empowers engineers to prioritize cost efficiency as they build and operate their entire software stack.
With over $5 billion in cloud costs currently under management, these differentiators are why customers ranging from leading startups to Fortune 500 companies rely on CloudZero to build cost-efficient software. "CloudZero has one of the most powerful cloud cost intelligence platforms on the market," said Mike Rosenberg, senior director of engineering at Nubank. "As a fellow data-driven organization, CloudZero is a strong cultural fit for Nubank and we're glad to partner with the team."
"Product and engineering leaders are under as much pressure as ever to deliver innovation, but now they are being asked to do so on leaner budgets," said Josh Stein, co-founder and managing partner at Threshold Ventures. "CloudZero provides engineers with the right data at the right time to make cost-efficient decisions without disrupting their workflow or slowing down new feature delivery."
With the new round of funding, CloudZero will expand platform features, advance its enterprise functionality, and scale headcount with the goal of helping more customers get the most value out of their cloud investments.
"Despite the existence of first-generation cloud cost management solutions, the number one pain for FinOps professionals is consistently getting engineers to take action," said Phil Pergola, CEO of CloudZero. "CloudZero recognizes that every engineering decision is a buying decision, which is why our platform is purpose-built for engineers. It is invigorating for the CloudZero team to come to work every day knowing that we are helping thousands of engineers drive tens of millions of dollars in cost savings, and we are just getting started."