Hydrolix: Can Non-AI Companies Go From $1M to $40M ARR in 2 Years?

I can't usually talk about portfolio companies' revenue traction. But since the figure was already reported in the news today: Hydrolix went from $1M to $40M of good-gross-margin ARR in 2 years, with 8x ARR growth just in 2024, and just raised a $80M Series C led by QED.

When they had $1M in ARR two years ago, I was lucky enough to invest in their $20M Series A, thanks in part to the kindness of Ishani Thakur and founder Manish Patel of Nava, the Series A lead, who allowed Uncorrelated to co-invest, perhaps hoping that my infrastructure software background might be of some use to the company. But multi-time founder & CEO Marty Kagan is a very special entrepreneur – no-nonsense, super-technical, creative, and masterful executor. I'm proud to say that I have not helped him at all, in any way. It's just a pleasure to watch great people do their work.

Now having invested super pro rata over three rounds in addition to purchasing some secondary, I'm thankful that Uncorrelated has a few million dollars invested in this company. Hydrolix helps companies manage massive volumes (petabytes) of log data. As a venture investor it's heartening to see that just solving a problem -no matter how old or boring- in a better way, can result in a big company.

“Log data doesn’t just provide a history — it tells a story,” Marty said in a blog post. “And it’s not just about what happened in the past. It provides the ability to make educated guesses about the future.”