Neon provides a managed, cloud-based Postgres platform with a free tier and usage-based paid plans that let developers clone databases, preview changes, and autoscale processor, memory and storage. The platform emphasizes developer productivity via database branching workflows and targets both individual developers and enterprises. Neon reports hundreds of thousands of developers using its free tier, thousands of paying startups and SMBs, and more than 3,000 projects created on the platform daily. The company has benefited from demand tied to generative AI and is expanding product capabilities to support those workloads. Neon plans to expand its engineering headcount from about 100 to 120 by year-end and is investing in new database features and Azure integration. Financially, Neon says it has $130.6 million in the bank and "many years" of runway. Neon provides a multi-cloud, serverless Postgres platform purpose-built for modern workloads such as edge computing and AI. Its offering includes a fast, low-latency version of the node-postgres package that supports edge functions on providers like Vercel and CloudFlare. Neon Postgres is offered to developers as open-source software under the Apache 2.0 license. The company plans to use new funding to double headcount from 50 to 100 by year-end and to grow its leadership in edge computing and vector search. Neon also intends to continue investing in its partner base. The company is led by CEO Nikita Shamgunov. Neon provides a serverless Postgres cloud service with compute and storage that scale dynamically; compute activates on incoming connections and can scale to zero while cold data can be offloaded to third‑party stores such as Amazon S3. The platform implements a copy‑on‑write technique to enable checkpointing, branching and point‑in‑time restores, allowing developers to create database branches for test environments. Neon launched its service in beta on June 16 and offers a free tier; it reports 700 registered users and over 5,000 people on the waitlist. The company is currently pre‑revenue and plans to invest in expanding the free tier this year before shifting focus to monetization in 2023. Neon has 30 employees and expects to be “in the 40s” by year‑end; management says it targets 28–30 months of runway by keeping burn low. To date the startup has raised $55 million. Neon delivers a serverless PostgreSQL offering that lets developers run standard PostgreSQL queries without provisioning or maintaining servers. The company emphasizes a serverless model that separates compute from storage, off‑loading cold archival data to S3 to lower costs. Neon offers branching/quick-copy features so developers can experiment with database versions without full copies. The project is built on an open‑source foundation; Neon has open sourced its storage layer (written in Rust) and has hired active PostgreSQL core contributors to maintain compatibility. Pricing is usage‑based (transactions and data volume) and the company will provide a free tier for experimentation. Neon emerged from a fifteen‑month‑old startup and has raised capital through earlier financing rounds.

Total raised

$125M

Funding rounds

4

Latest round

Equity

Latest activity

Aug 2024