Cloud startup Nuon exits stealth with $16.5M in funding to bring BYOC to the masses

Much of what we know about cloud software today comes from early innovators like Facebook, Google, and Netflix. While these companies helped shape the consumer cloud, modern B2B software faces an entirely different set of challenges. Traditional SaaS models often demand complex integrations and require customers to move their data into developer-controlled environments. This not only increases costs but also raises security and efficiency concerns.

These pain points inspired Jon Morehouse to create Nuon, a platform built on the “bring your own cloud” (BYOC) concept. Instead of forcing data into a developer’s infrastructure, Nuon allows software to operate directly within a customer’s cloud environment. This approach combines the convenience of SaaS with the control and security enterprises demand.

$16.5M Funding Round

Nuon announced on Tuesday that it raised $16.5 million from venture capital firms including M12, Uncork Capital, Redpoint Ventures, and lumni Ventures. Additional investors include Essence VC, Mantis VC, and Red Swan Ventures. Angel investors like Quinn Slack (SourceGraph), Richie Artoul (WarpStream co-founder), and Michael Grinich (WorkOS) also participated.

The funding will support product development, customer acquisition, and preparations for a public launch in early 2025. Alongside the funding announcement, Nuon unveiled an early access release of its BYOC platform.

How Nuon Works

Nuon, Jon’s fourth startup, helps software companies deliver SaaS-like experiences directly within a customer’s cloud accounts. This approach addresses growing demands for data sovereignty, compliance, and security while unlocking new revenue opportunities. By meeting these requirements, Nuon allows SaaS providers to cater to new customer segments and offer enhanced product capabilities.

Jon Morehouse, Nuon’s founder and CEO, said: “Every enterprise software company eventually faces the same question from customers: ‘Can this run in our cloud account?’ Nuon makes BYOC deployment possible in minutes, helping companies meet compliance needs, gain deeper data integration, and tap into new markets.”

The Evolution of BYOC

Companies like Databricks, Redpanda, and Retool have explored BYOC-like models, but many founders hesitate due to the technical challenges involved. Jon recognized BYOC as the future of software deployment and built Nuon to simplify this model for all companies. The rise of AI has only heightened the demand for BYOC, making this approach more urgent for businesses that rely on advanced data handling and infrastructure.

Nuon’s platform offers tools like a control plane for managing installations, APIs, SDKs, and CI/CD systems for monitoring and debugging. This framework makes BYOC a seamless option for companies looking to complement their existing SaaS offerings.

The Road Ahead

Jon, a seasoned entrepreneur with a decade of experience in cloud technologies at Amazon and BuzzFeed, founded Nuon in 2021. He saw a larger opportunity to redefine software delivery by allowing applications to run within customer environments.

Andy McLoughlin, managing partner at Uncork Capital and a Nuon board member, said: “We invested in Nuon because we believe BYOC will redefine software deployment. Nuon is well-positioned to lead this shift and build a transformative infrastructure company.”

Nuon’s platform is already being used by several AI and data infrastructure companies to deliver BYOC solutions. The company aims to make its platform widely available by the first quarter of 2025.

Founded in late 2021, Nuon is a venture-backed software company rethinking how AI, data, and critical infrastructure software are deployed. By enabling SaaS providers to implement BYOC in minutes, Nuon simplifies software management, expands product capabilities, and opens up new revenue opportunities—all within customers’ cloud environments.

Nuon Team