SAN FRANCISCO, Aug. 7, 2024 — Neon, the innovative serverless Postgres database tailored for developers, has announced a significant strategic investment of .6 million, spearheaded by M12, Microsoft’s Venture Fund. This round of funding also saw participation from existing investors including Abstract Ventures, General Catalyst, Menlo Ventures, and Notable Capital. With this latest infusion, Neon’s total funding has now reached an impressive 0.6 million since its inception in 2021.
Investment Insights
Andrew Smyth, managing partner at M12, emphasized the growing preference for Postgres among developers, stating, “Postgres is quickly becoming the database of choice for developers, and we are investing heavily in that ecosystem. Neon is a leading Postgres platform, and this strategic investment underscores our commitment to deeply integrate Neon into Azure.”
This investment reflects Microsoft’s dedication to addressing the evolving needs of modern developers. Recent data from the Stack Overflow survey indicates that Postgres has overtaken MySQL as the most favored database among professional developers, thanks to its open ecosystem, stability, and robust performance.
Neon’s Modern Database Features
Neon distinguishes itself by decoupling compute and storage components while remaining true to core Postgres principles. This innovative approach enhances the database’s integration into contemporary developer workflows, making it more automated, manageable, and ready for AI applications. The new capital from M12 is set to propel the development of next-generation AI applications on Azure.
- Instant provisioning: Neon’s architecture features a custom-built storage engine that allows for the provisioning of new databases in under a second, thanks to its unique decoupling of storage and compute.
- Efficient scaling: During the building phase, Neon saves engineering time, and when scaling is necessary, it manages resource allocation automatically according to load. This ensures optimal performance during traffic spikes without the need for preemptive overprovisioning. Additionally, Neon offers on-demand storage, eliminating the hassle of disk management.
- Integrated developer workflows: Neon’s database branches facilitate shorter software lifecycles by allowing developers to seamlessly integrate their databases into CI/CD pipelines in a cost-effective manner. This enhanced developer experience, coupled with improved cost efficiency, has contributed to the rising popularity of Neon’s serverless Postgres technology.
Nikita Shamgunov, CEO of Neon, expressed confidence in the platform, stating, “We’re confident that Neon provides the best developer experience for Postgres users. This new investment ensures Neon is well-positioned to build and ship features that will transform the developer experience within Microsoft Azure.”
About Neon
Founded in 2021 by a team of seasoned database builders and Postgres contributors, Neon aims to empower developers and teams to accelerate their shipping processes with Postgres through a serverless cloud platform. Currently, over 3,000 projects are initiated on Neon each day, supporting a diverse range of applications from startups creating cutting-edge AI tools to established platforms like Vercel, Replit, and Retool.
Source: Neon
