CloudZero Secures $56M in Series C Funding to Enhance Cloud Cost Optimization Platform

Cloud cost optimization startup CloudZero closes $56M investment - SiliconANGLE

Cloud cost optimization startup CloudZero closes $56M investment Startup CloudZero Inc. has raised $56 million from investors to enhance its namesake software platform, which helps enterprises lower their cloud expenses. The company announced the Series C round on Wednesday. It was led by BlueCrest Capital Management and Innovius Capital with participation from MongoDB Inc., Matrix Partners, Threshold Ventures, Underscore VC and G20 Ventures. The round brings CloudZero's total outside funding to more than $85 million. Companies search for opportunities to lower cloud costs by analyzing their infrastructure- and software-as-service bills. Each cloud provider formats spending data differently, which means that the data has to be organized into a single, consistent format before it can be reviewed. CloudZero says that its platform automates the task to save time for finance teams. After normalizing spending data, the company's software breaks it down by source. CloudZero can display the costs incurred by each of a company's cloud environments, workloads and business units. It also provides more granular information. The platform can calculate, among others, the cloud expenses associated with specific application features. Mapping cloud costs to specific software assets is a challenge in Kubernetes clusters. The reason is that such clusters can contain hundreds of containers, automation tools and other components. Often, each component has a label that describes what it does, but the descriptions aren't always up-to-date. CloudZero says that its platform can provide visibility into Kubernetes spending regardless of label quality. One way companies reduce their cloud costs is by making long-term purchase commitments. When an enterprise agrees to use an instance or a cloud application for an extended period of time, it can secure significant discounts. The more of a company's cloud spending is folded into longer-term purchase agreements, the more it saves. CloudZero can measure how effectively a company uses long-term purchase agreements. It also identifies spending spikes. Built-in artificial intelligence models measure out the average hourly cost of running a cloud workload and detect sudden increases. On occasion of this week's funding round, the company disclosed that it experienced "triple-digit growth" in the past year. CloudZero now manages more than $14 billion in cloud spending for customers. It claims that those customers take an average of three months to make back what they spend on its software.

CloudZero Raises $56 Million In Latest Funding Round

Development database provider MongoDB was among those investing in the cloud cost optimization platform company. CloudZero, startup developer of an industry-leading cloud cost optimization platform, has raised $56 million in a Series C funding round that included a "strategic investment" from development database provider MongoDB. CloudZero said the funding round followed "another year of triple-digit growth" without disclosing actual financials. The Boston-based company said it would use the additional financial resources to accelerate development of AI-driven cost analytics and forecasting, build deeper integrations across developer and finance workflows, and expand strategic partner and cloud alliances. [Related: The Coolest Cloud Computing Companies Of 2025] CloudZero, founded in 2016, provides a cloud FinOps system that automates the collection and analysis of cloud and AI spending data, providing businesses and organizations with visibility into their cloud and AI infrastructure spending and helping them quantify and maximize ROI. Cloud spending is expected to reach $2 trillion by 2030 and AI workloads are reshaping IT infrastructure needs, the company said. "AI is redefining what's possible -- but without a deep understanding of cloud unit economics, innovation becomes unsustainable," said Phil Pergola, CEO of CloudZero, in a statement. "CloudZero is pioneering a new standard for cloud cost optimization, giving companies the precision they need to scale cloud and AI responsibly." The funding round was led by BlueCrest Capital Management and Innovius Capital, with participation from Matrix Partners, Threshold Ventures, Underscore VC and G20 Ventures. "Organizations that optimize their cloud costs gain a competitive advantage, while those that neglect cost management risk limiting their growth and innovation," said Michael Platt, founder and CEO of BlueCrest Capital Management, in a statement. "CloudZero gives customers financial control and predictability in the cloud -- helping them boost profit, eliminate surprises, and reinvest in the next wave of innovation in critical areas like AI." CloudZero also said MongoDB made a "strategic investment" as part of the funding round. "This was a perfect time to partner with CloudZero," said Benjamin Cefalo, senior vice president of product management at MongoDB, in a statement. "The future of FinOps goes far beyond simple cost-cutting -- it's about cloud business efficiency. CloudZero is the only player in the market that truly understands this and is actively innovating toward that broader vision."