Hydrolix Raises $80M Series C to Address Log Data Cost and Scale

Hydrolix, a company specialising in large-scale log data infrastructure, has closed an $80 million Series C funding round. The round was led by Prysm Capital with participation from new investors including Next47 and Wing Ventures, as well as continued support from AV8 Ventures and Wing Venture Capital. This brings Hydrolix’s total funding to $110 million.

Background and Context

As organisations increase their use of digital services and AI technologies, they are generating growing volumes of machine-generated log and telemetry data. This data is essential for use cases such as security monitoring, product analytics, system observability, and AI model governance. However, the cost and performance limitations of traditional observability tools have created challenges for organisations attempting to store and query large volumes of log data.

Hydrolix aims to address these issues by offering a log data platform that enables lower-cost storage and faster query performance at scale. The company separates storage and compute and uses compression techniques that avoid the need for upfront indexing. This approach allows organisations to retain more data over longer time periods and analyse it using standard SQL, while reducing infrastructure costs.

Platform Capabilities

Hydrolix’s platform can handle ingestion rates exceeding 1 million events per second with sub-second query latency. The system is designed for schema-on-read processing, which adds flexibility for users working with varied or evolving data structures. These capabilities are particularly relevant for enterprise environments where log data volumes can reach terabyte or even petabyte scales.

Hydrolix’s architecture is positioned as an alternative to traditional SIEMs and observability platforms, many of which charge based on volume or retention and may become cost-prohibitive at scale.

Implications of the Raise

The $80 million Series C will support Hydrolix’s international expansion, continued product development, and broader go-to-market efforts. The company is expected to deepen its focus on infrastructure optimisation, especially for use cases where cost, performance, and data retention are critical.

This investment also reflects broader trends in infrastructure software funding, particularly in areas related to data platforms, observability, and tools that support AI readiness. As AI adoption grows, so does the importance of scalable data pipelines that can support real-time monitoring, auditability, and model feedback loops.

Market Perspective

The Hydrolix raise is consistent with a wider pattern of investment into companies solving back-end infrastructure challenges. In an environment where data volumes are increasing rapidly, but budgets remain constrained, organisations are looking for platforms that optimise both performance and cost.

Infrastructure providers that can help companies manage data more efficiently - particularly in log and telemetry-heavy environments - are likely to remain a focus of both enterprise buyers and investors.