In 2021, Roy Lavon, Asaf Riveanu, and Izar Gilboa joined forces to found Finout, an enterprise toolset that helps manage and optimize cloud costs. (We covered the company's stealth releases in 2022.) Lavon, CEO of Finout and previously director of engineering for observability platform Logz.io, says that when trying to understand cloud costs, said that obstacles he personally encountered prompted him to found Finout.
“One of the main challenges enterprises face is the widespread adoption of cloud cost management tools, which is first and foremost an organizational change,” Ravhon told TechCrunch. “AI can have significant cost implications, either due to third-party influence or the rise in regular cloud costs for infrastructure used for AI purposes.”
In fact, amid the AI boom, companies are investing heavily in cloud products and services, but at the same time, they are struggling to gain insight into and control those costs.
According to a report from Canalys, global spending on cloud infrastructure services grew 21% year over year to $79.8 billion in the first quarter of 2024, an increase of $13.4 billion. However, according to a study by CloudZero, two-thirds of enterprises are unable to accurately report unit cloud costs, and 58% say costs are too high.
So how does Finout solve this problem? provides a comprehensive view of Beyond analytical dashboards, Finout hosts tools to reallocate and adjust cloud spend across departments, teams, and individual projects, giving businesses options they might not have been able to reach on their own. Masu.
“For C-level IT managers, Finout's technology provides comprehensive visibility into cloud spend, helping IT leaders identify inefficiencies and effectively optimize resources,” said Ravhon. “Advanced cost allocation capabilities allow for accurate allocation of cloud costs across departments, supporting better budget control and accountability.”
Image credit: Finout
Finout's competitors in the field of cloud spend management tools, also known as FinOps, include Broadcom's CloudHealth and IBM's Cloudability, as well as startups such as Vantage, Exostellar and Ternary. Despite this crowded market, Finout has attracted high-profile clients such as the New York Times, Tenable, and Wiz, and has grown annual recurring revenue nine times as much from 2022 to his 2023.
Looking toward further growth, Finout this week closed a $26 million Series B round led by Red Dot Capital with participation from Maor Investments, Team8, Pitango, and Jibe Ventures. This brings Finout's total funding to $45 million, which will be used to grow Finout's team from 45 to 75 people by the end of the year, with a focus on R&D, go-to-market and customer success teams.
“The technology slowdown has led many companies to focus on optimizing unit economics, making cloud spending a key factor,” Lafon said. “Finout is growing as organizations seek to improve financial efficiency.”