Neon

Neon

Fully managed, cloud-native serverless Postgres

Overview

Neon provides a cloud-native, serverless Postgres solution for developers. It offers a fully managed Postgres instance with on-demand compute and separated storage, enabling the database to scale automatically and to scale compute to zero when idle. Data can move to cold storage (like S3) for cost efficiency, while ensuring 100% Postgres compatibility and fast 3-second+ cold starts. The service is designed to simplify database operations for developers, with predictable, usage-based pricing through a subscription model. Neon differentiates itself by decoupling storage and compute, allowing true serverless Postgres, instant scale on incoming connections, and rapid cold starts. The goal is to provide developers with an easy-to-use, scalable, and cost-efficient Postgres backend that handles growth without manual capacity planning.

Significant Headcount Growth

About Neon

Simplify's Rating
Why Neon is rated
C+
Rated C on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Data & Analytics

Enterprise Software

Company Size

51-200

Company Stage

Acquired

Total Funding

$1.1B

Headquarters

Menlo Park, California

Founded

2021

Simplify Jobs

Simplify's Take

What believers are saying

  • Databricks' $1B acquisition in May 2025 boosts AI infrastructure integration.
  • Azure native integration expands enterprise distribution via Microsoft ecosystem.
  • Vercel partnership drives adoption among developers on that platform.

What critics are saying

  • Databricks integration delays alienate standalone Neon customers within 6-12 months.
  • AWS Aurora Serverless v2 commoditizes Neon's autoscaling in 12-18 months.
  • Supabase matches features at lower prices, eroding Neon's market share.

What makes Neon unique

  • Neon separates storage from compute for serverless Postgres autoscaling.
  • Database branching enables instant copies using copy-on-write technology.
  • Scale-to-zero activates compute in under 3 seconds on connections.

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Funding

Total Funding

$1.1B

Above

Industry Average

Funded Over

6 Rounds

Acquisition funding comparison data is currently unavailable. We're working to provide this information soon!
Acquisition Funding Comparison
Coming Soon

Benefits

Remote work environment

Equity & stock options

Top-notch equipment

Unlimited PTO

Paid parental leave

Growth & Insights and Company News

Headcount

6 month growth

1%

1 year growth

-9%

2 year growth

10%
Hostnoc
May 16th, 2025
Databricks To Acquire Neon for $1 Billion to Revolutionize AI Database Infrastructure

Databricks to acquire Neon is a strategic move to better compete with other major players in the artificial intelligence and data infrastructure space, such as Snowflake and Google Cloud.

Dataconomy
May 15th, 2025
Databricks bets big on serverless Postgres with its $1 billion Neon acquisition

Neon has raised $129.6 million in funding from investors such as Microsoft's M12, General Catalyst, Menlo Ventures, and Notable Capital.

Techstrong Group, Inc.
May 15th, 2025
Neon Serverless Postgres: Azure Native Integration Now Available

Microsoft and Neon have announced the general availability of Neon Serverless Postgres as a native integration within the Azure ecosystem.

36Kr
May 15th, 2025
Databricks Acquires Neon for Serverless Postgres

Databricks announced the acquisition of Neon, a company focused on serverless Postgres solutions, on May 14. Neon's co-founding team, known for their expertise in rearchitecting Postgres databases to achieve true storage and compute separation, will join Databricks. This move aims to provide developers with production-grade serverless Postgres services in the AI-native era.

Dolphin Publications
May 6th, 2025
Databricks looks to buy database startup Neon for over $1B

Databricks looks to buy database startup Neon for over $1B.

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