Farukh Kitchlew | Feb 19, 2024 | 0
Neon’s series B funding: A $46 million boost
Neon, a two-year-old startup specializing in relational databases, has been making waves in the tech industry. With a team of just over 50 people, Neon is dedicated to advancing Serverless Postgres in the cloud. In a recent blog post, the company secured $46 million in a new funding round. The funding round has brought Neon’s total raised capital to $104 million.
The new cash injection will enhance Neon’s developer experience and sponsor R&D in the AI space, according to CEO Nikita Shamgunov. Neon also plans to double its workforce by the end of the year. Despite not yet being profitable, Neon is focused on growing its free tier which already has hundreds of users. The company plans to shift its efforts toward monetization by the end of the year.
“It’s important for us to invest in our free tier, making Postgres in the cloud affordable and accessible for small teams and individual developers,” Shamgunov said.
Neon’s architecture separates storage and computing for a serverless, multi-cloud Postgres database. It supports branching for testing and development and point-in-time recovery for restoring databases to specific historical times. Neon plans to become the default for Postgres in the cloud. With a focus on the very thin edge of innovation around Serverless, Edge Functions, and Vector Search, Neon is outengineering its competitors.
With a clear vision and a commitment to innovation, Neon marks a significant milestone in its journey through its recent $46 million investment. Neon is poised to become a leading player in the cloud database market.