Tsuga, a Paris-based startup founded by two former Datadog engineers, has raised a $10 million seed round led by General Catalyst and Singular. The company is tackling the spiraling costs of software monitoring with a "bring your own cloud" (BYOC) model.
Round two: Founders Gabriel-James Safar and Sébastien Deprez are veterans of the observability space, having previously co-founded Madumbo, an automatic testing startup that was acquired by Datadog in 2018. Their experience inside the industry leader gave them a direct view of the market's pain points.
The broken promise: Tsuga argues the current observability paradigm is fundamentally broken, creating a paradox of "technical complexity, exponential costs, and growing operational risk." The company's position is that as AI development accelerates data volumes, the "blank-check" SaaS model of charging per gigabyte is becoming unsustainable for large enterprises.
Your cloud, your rules: Instead of transferring massive amounts of data to a vendor, Tsuga’s solution deploys its platform directly into a customer's own cloud environment. This BYOC architecture gives customers predictable costs by eliminating data transfer markups and keeps sensitive data secure. Built on open-source standards like OpenTelemetry, the platform is designed to prevent vendor lock-in.
As CEO Gabriel-James Safar puts it, the goal is to deliver "the simplicity of SaaS without runaway costs, the control of on-prem without the operational pain, and the context and intelligence to deliver outcomes."
Also on our radar: Tsuga's funding is part of a broader 2025 European trend of investors backing startups in the observability and data infrastructure space. Meanwhile, the company is already signaling its path to market with a listing on the AWS Marketplace, a key distribution channel for enterprise software.
