According to EU-Startups, Paris-based observability platform Tsuga has emerged from stealth with €8.7 million in Seed funding to accelerate product development and expand its teams. The round was led by General Catalyst with participation from Singular and notable angel investors including Amjad Masad (Replit), Charles Gorintin (Alan, Mistral AI), and Philippe Corrot (Mirakl). Founded in 2024 by Gabriel-James Safar and Sébastien Deprez, who previously founded and sold Madumbo to Datadog, Tsuga tackles the critical problem of data volumes growing 30% annually while IT budgets increase less than 10%. The company’s Bring Your Own Cloud (BYOC) architecture and open-source-first approach aim to give enterprises complete control over their observability data without the runaway costs that plague current solutions.
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<h2 id="observability-crisis”>The observability crisis is real
Here’s the thing – everyone in tech knows observability is broken, but few companies are doing anything truly innovative about it. Data volumes are exploding at 30% annually while budgets crawl along at less than 10% growth. That math simply doesn’t work. And now AI is making everything worse – autonomous code and ephemeral microservices are generating telemetry data faster than any human team can possibly process it. The promise of a “single pane of glass” has turned into tool sprawl, blind spots, and what Tsuga calls “existential risk” for enterprises. Basically, companies are flying blind while paying through the nose for the privilege.
Part of a bigger European wave
Tsuga isn’t alone in spotting this opportunity. Across Europe, we’re seeing a surge in observability and data infrastructure funding. Sweden’s Rerun just raised €15.6 million for physical AI monitoring, Ireland’s Bronto secured €12 million for AI-era log management, and Switzerland’s Qala AG picked up €1.7 million for data governance. But what makes Tsuga particularly interesting is their team’s background – these are the people who built and sold to Datadog, then experienced the limitations firsthand. They’re not just theorizing about the problem; they lived it. And their BYOC approach directly attacks the cost and control issues that plague SaaS observability platforms.
The Datadog alumni strike back
Look, there’s something compelling about a team that helped build the dominant player in a space now coming back to disrupt it. Safar and Deprez sold their previous company Madumbo to Datadog, then led key initiatives there. They’ve brought in Nils Bunge, formerly Director of Product Management at Datadog, and Valentin Jacquemont, one of Datadog’s first European sales hires. This gives them incredible insight into both the technical limitations and the customer pain points. They’re essentially taking everything they learned about what doesn’t work at scale and building the solution they wish they’d had. That’s a powerful founding story in enterprise software.
The control versus convenience battle
Tsuga’s BYOC model is essentially saying “you can have both control and convenience” – which directly challenges the trade-offs that have defined observability for years. Either you get the simplicity of SaaS but lose control and face unpredictable costs, or you get the control of on-prem but deal with operational nightmares. Their promise of “no missing data, no runaway costs, no trade-offs” sounds almost too good to be true. But if they can actually deliver on that while handling the 30% annual data growth that’s crushing existing solutions? They might just have something that could reshape how enterprises think about observability infrastructure. The €8.7 million suggests investors believe they can pull it off.
