New Relic competitor Datadog raises $94.5 million

SAN FRANCISCO (Reuters) - New York-based technology systems-monitoring company Datadog said on Tuesday it had raised $94.5 million in funding to help it take on competitors like New Relic and AppDynamics.

The cash infusion comes two months after San Francisco-based AppDynamics raised $158 million from investors in a funding environment less friendly to startups compared with the start of 2015.

Many enterprise startups have rattled investors with initial public offerings that assigned lower values to the company compared with their last funding rounds as privately traded companies.

New Relic, for example, held an offering in December 2014 that valued it just shy of $1 billion, compared with the $1.1. billion in its last funding round as a private company earlier that year. Although its shares jumped 50 percent on its first day as a public company, investors typically expect a higher price even before the shares start trading.

Iconiq Capital led Datadog’s round, with participation from existing investors Index Ventures, OpenView Ventures, Amplify Partners, Contour Ventures and others.

Datadog provides services such as troubleshooting when computer tasks slow down or problems emerge in software code.

Its customers include accommodation service Airbnb and video-streaming service Netflix.

Reporting by Sarah McBride; Editing by Peter Cooney