Chronosphere Acquires Observability Platform Calyptia

Chronosphere, a Prime Unicorn Index component, has acquired Calyptia, as disclosed in recent filings with the states of California and Delaware. The Prime Unicorn Index is the first to report this acquisition.

Chronosphere is an observability platform that provides enterprises with cloud-native monitoring and distributed tracing solutions. The company, founded by Martin Mao, offers open-source technologies to help organizations succeed on their cloud-native journey. Chronosphere, valued at $1.74 billion, has raised $369 million over four rounds. Its most recent round was a $115 million Series C-1 in January 2023. Investors include Founders Fund, Google Ventures, Geodesic Capital, Lux Capital, General Atlantic, Greylock, Addition Ventures, and Glynn Capital Management.

Calyptia, founded in 2020, is a San Francisco-based company that focuses on enabling organizations to gain insight and value from their data pipelines. The company is known for its First-Mile Observability platform, built on open-source projects Fluent Bit and Fluentd. Calyptia’s solutions are designed to help companies collect and analyze system data at its source, providing immediate insights and control over the data flow. Calyptia raised $5 million of seed funding in a deal led by Sierra Ventures and Carbide Ventures in March 2022, valuing the company at $25 million.

This deal was disclosed through a Notice of Exchange Transaction filing with California, effective December 27, 2023, and a Certificate of Merger filed with Delaware on December 18, 2023. In addition to these disclosures, Chronosphere authorized a new Series C-2 and C-3 in a Certificate of Incorporation filed with Delaware on December 18, 2023, at the same price as its Series C-1 round, $5.4152.

The acquisition was likely motivated by Chronosphere’s aim to enhance its observability platform by integrating Calyptia’s telemetry pipeline solution, Calyptia Core 2.0, which includes fleet management features to unlock time savings and engineering productivity. Additionally, Calyptia’s expertise in open-source telemetry agents, such as Fluent Bit, may have been a strategic fit for Chronosphere, as evidenced by their collaboration in workshops and events related to metrics monitoring and observability. This acquisition could further strengthen Chronosphere’s position in the observability market and help it better serve engineering organizations dealing with data growth and cloud-native complexity.