Neon, an open-source, fully-managed, multi-cloud Postgres as-a-service, has raised $30 million. With assistance from an angel investor group that included Nat Friedman, Ajeet Singh, Guillermo Rauch, Wes McKinney, Ryan Noon, and Sren Brammer Schmidt, GGV Capital led an investing group that also included Khosla Ventures, General Catalyst, Founders Fund, and Elad Gil. Neon has now more than quadrupled its overall investment to $54.3 million after a successful previous funding round.
Heikki Linnakangas and Stas Kelvich, two Postgres hackers, co-founded Neon, which was nurtured at Khosla Ventures by Nikita Shamgunov, who joined as CEO early this year. With this additional money, Neon would be able to bootstrap a GTM team in addition to expanding its product line and growing overall.
Neon provides a fully managed Postgres as-a-service platform with bottomless storage and autoscaling, which would result in significant cost savings. The company says it will continue to prioritize developer experience while concentrating on developing relationships with developers.
Neon’s distinct architecture, which separates storage and processing, is the foundation for features that enhance the developer experience while reducing expenses. Following the release of its Technical Preview, over 3,600 developers ‘starred’ Neon on GitHub, and this excitement led to a first page placement on Hacker News.
Cloud-Native Architecture
“Neon’s scalable features contain costs, provide elasticity, offer bottomless storage, and easily integrate with Amazon S3,” said Nikita Shamgunov, Chief Executive Officer (CEO) at Neon. “The company will further improve application development with its substantial roadmap, including features such as branching, which will enable developers to instantly branch their production database, saving time and resources. The Postgres community is already responding to what’s possible with a modern, cloud-native architecture. This additional investment ensures Neon is well-positioned to build and ship new features that will transform developer experience.”
This significant fundraising round would demonstrate the trust of investors in Neon’s vision, objectives, and capabilities. Neon will keep adding functionality as it develops in order to give developers a more cutting-edge, serverless Postgres experience.
“Modern applications are cloud-based, distributed, run at the edge, and perform at unparalleled speeds. At GGV Capital, we’ve been looking for a serverless Postgres-based backend solution that’s tuned to the needs of modern application developers,” said Glenn Solomon, Managing Partner at GGV Capital and Neon board member. “Nikita Shamgunov and the Neon team have built an incredible solution, empowering developers with the cloud-based backend database they need to complement their front-end projects. Given the strong developer traction, Neon’s future is very bright.”
