Serverless Postgres provider Neon scores $46M in series B funding round
Neon, a multi-cloud serverless Postgres provider, has successfully concluded a series B funding round, securing $46 million. Enabling databases to run near or at the edge is seen as a key component to enabling advanced edge applications that need to store data rather than only processing data as it streams in.
Menlo Ventures led the round alongside Founders Fund, General Catalyst, GGV Capital, Khosla Ventures and Elad Gil, all of whom had previously invested. New participants included Snowflake Ventures and Databricks, presenting potential options for future collaboration.
This funding round follows on the heels of a $30 million series A last year. With a total investment of $104 million to date, Neon says it has positioned itself as a leading supplier of serverless Postgres. This is further evidenced by its rapidly expanding customer base, which has grown usage of Neon’s products from 20,000 to 100,000 databases in six months.
Tim Tully, a partner at Menlo Ventures, will augment Neon’s board of directors. Tully lauds Neon’s business potential, highlighting its features like separation of storage and compute, branching and serverless architecture. He explains his vision for Neon, asserting that it would allow developers to focus on features, latency and development speed, instead of being burdened by database management.
Neon says the enhanced investment will drive the development of next-generation applications. The company also plans to double its team size and strengthen its edge computing and vector search leadership. With the new funding and a focus on its partner base, including trusted partners like Vercel, Replit, Hasura, and CloudFlare, Neon aims to empower developers with its open-source Postgres offering.
Neon’s CEO, Nikita Shamgunov, identifies edge and vector similarity search as game-changers for the Postgres as a Service sector.
“We are at the forefront of both with our Edge Aware Driver and our pg_embedding vector search extension,” explains Shamgunov. “This funding will allow us to cement our leadership position in these arenas.”
Earlier this year, Neon and Vercel joined forces to unveil Vercel Postgres, a serverless SQL database solution. This technology enables developers and organizations to focus on creating application logic, without the need for managing data storage infrastructure. By incorporating Neon’s serverless Postgres into Vercel applications, businesses can now deploy high-performance, low-latency serverless Postgres applications.
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Article Topics
database | DevOps | edge applications | Neon | Postgres | venture capital
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