Neon Secures $30 Million in Series A-1, Validating Investor Confidence in Serverless Postgres Database Service

With increased investment in the company's developer-friendly, multi-cloud, fully-managed Postgres, Neon more than doubles funding to $54.3M.

SAN FRANCISCO, July 26, 2022 /PRNewswire/ -- Neon, Inc., the first open-source, fully-managed, multi-cloud Postgres as a service, has raised $30 million in its Series A-1 round. GGV Capital led an expert investment group that includes Khosla Ventures, General Catalyst, Founders Fund, and Elad Gil with support from a group of notable angels, including Nat Friedman, Ajeet Singh, Guillermo Rauch, Wes McKinney, Ryan Noon, and Søren Brammer Schmidt. Following a successful Series A round, Neon has now more than doubled its total funding to $54.3 million.

Neon, co-founded by Postgres hackers Heikki Linnakangas and Stas Kelvich, was incubated at Khosla Ventures by Nikita Shamgunov, who joined as CEO earlier this year. With this new funding, Neon will continue to build its engineering team, accelerate product expansion and overall growth as well as bootstrap a GTM team. The company is also focused on building developer relations with continued plans to prioritize developer experience. Neon offers a modern, robust platform that includes bottomless storage, and autoscaling, leading to substantial cost savings.

Neon's unique architecture separating storage and compute underpins features to improve the developer experience and save costs. Over 3,600 developers "starred" Neon on GitHub after its Technical Preview launch, with interest generating a front page listing on Hacker News.

"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."

Neon's scalable features contain costs, provide elasticity, offer bottomless storage, and easily integrate with Amazon S3. 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," said Neon CEO Nikita Shamgunov. "This additional investment ensures Neon is well-positioned to build and ship new features that will transform developer experience."

This impressive funding round validates investor confidence in Neon's mission, goals, and capabilities. As Neon continues its growth, the company will continue expanding features to further empower developers with a modern, serverless Postgres experience.

About Neon
Neon is an open-source, multi-cloud, fully-managed Postgres as a service backed by an impressive list of top-tier investors, including GGV Capital, Khosla Ventures, General Catalyst, and Founders Fund. By separating storage from compute, Neon offers autoscaling, one-click start, multi-cloud compatibility, and bottomless storage to give developers a simple, reliable, and powerful experience. With a generous free tier, developers can quickly start and efficiently scale at will. Learn more at neon.tech.

Contact: press@neon.tech

SOURCE Neon