- OllyGarden has secured $4 million in funding in order to help reduce unnecessary software telemetry.
- Datadog, Grafana Labs and Dash0, which also invested in 2025, took part in this most recent funding round.
- The founder of OllyGarden says its solutions remain with customers even if they decide to switch to a different vendor.
Datadog, Grafana Labs, and Dash0 all offer platforms to store and search software telemetry, and they have since invested further in a Berlin-based startup that believes much of this data is unnecessary.
The $4 million increase in OllyGarden’s funding was provided by Next Frontier Capital, Grand Ventures, and ACTAI Ventures. DIG Ventures, which is based in London, joined once more.
The company was established in 2025 and currently has 10 employees.
Why established companies are investing in reducing data
Telemetry involves the logs, metrics, and traces produced by software, and OllyGarden points out that AI-generated code has increased this level of noise.
“The evolution of code generated by AI made it clear that bad telemetry isn’t economically acceptable in 2026: 10x more code cannot mean 10x more dollars spent on observability solutions,” says Juraci Paixão Kröhling, co-founder and CEO, in a conversation with Tech Funding News.
This creates a problem for vendors, as many charge based on data volume, so customers who send less data end up paying less. Yet Datadog, Grafana Labs, and Dash0 have invested in a firm that intends to keep low-quality data off their platforms.
The reason is AI: Datadog, which earned $3.43 billion in 2025, and Dash0, valued at $1 billion after a $110 million funding round, both provide AI agents for analyzing telemetry, and agents that depend on noisy data give unreliable results.
On competitors, Kröhling mentions his own investors: “Backend vendors, like Datadog, Grafana, or Dash0 (who also happen to be investors) have some quality control mechanisms further down the track, but aren’t able to catch things at source. We detect bad telemetry and fix the bad instrumentation that caused it in the first place.”
The engineer who helped create the standard
Kröhling, an engineer from Brazil who currently resides in Germany, worked on the Jaeger and OpenTracing projects at Red Hat before moving to Grafana Labs. He sits on the governance committee for OpenTelemetry, the open standard for collecting telemetry, and initially concentrated on developing the Instrumentation Score, an open method for measuring telemetry quality.
Product development then took place. Rose, an AI agent, examines the OpenTelemetry code and submits pull requests for human approval. The new Minimum Viable Instrumentation extends Rose’s capabilities to apply to code that does not already have telemetry, setting a baseline for each team and repository while keeping data volume low.
Kröhling also states that Rose will keep on “tweaking the telemetry to respond to new questions and reducing the telemetry for questions that are no longer relevant.”
OllyGarden states it has helped companies reduce their log volume by as much as 85%, although this figure has not been verified.
A mostly US-based group of investors backs a 10-person team
A $4 million fundraising round came after a $1.6 million pre-seed round in July 2025, this time involving returning investors and angels, bringing the total raised to about $5.6 million.
The money will fund engineering work, go-to-market initiatives, and expanded offerings for open-source projects, enabling Kröhling to let them use its AI agent without worrying about tokens.
Rytis Vitkauskas, partner at DIG Ventures, stated: “Telemetry quality is a foundational enterprise problem that everyone has and nobody owns, and now AI has made it urgent. When the basics cannot be relied on, everything built above them breaks, and it breaks faster now because there is no human in the loop to catch it. Having backed Juraci and the team at OllyGarden’s inception, we are excited to double down.”
Amanda Terry, managing partner at ACTAI Ventures, added: “Every wave of AI has needed someone to make its input data trustworthy before the wave could deliver on its promise. Agentic operations are at exactly that inflection point. OllyGarden is building the trust layer for the data AI agents to run on, and Juraci is the rare founder who helped create the open telemetry standards and who can now build a highly scalable business on top of it.”
One major question remains: who is responsible for the quality of the telemetry? Although OllyGarden is not a backend vendor, its strategic investors are.
