CloudZero Secures $32M Investment for Cloud Cost Management Startup

CloudZero, a cloud cost management startup, has secured $32 million in a Series B funding round led by Innovius Capital and Threshold Ventures, bringing its total raised to over $52 million. The tranche will enable the company to expand its platform and scale its go-to-market efforts, with a focus on savings insights and self-service analytics, according to CEO Erik Peterson. CloudZero provides engineering teams with cost data in a unified dashboard, combining data with different types of business- and system-level telemetry. All this is laid on top of cloud billing data, enabling CloudZero to answer questions such as how much an individual product or feature costs. CloudZero’s platform analyzes hourly cloud spend data to alert engineers of abnormal spend events and identifies cost drivers and anomalies instantly, enabling engineers to proactively address cost spikes. Despite competing in the cloud cost optimization market, CloudZero has over 100 customers and its revenue has increased tenfold since 2021, according to Peterson.