Supabase hits $5 billion valuation with $100 million funding led by Accel and Peak XV

Supabase is having a breakout year. The open-source database startup, widely embraced by developers building AI-fueled apps, has secured a fresh $100 million Series E round that pushes its valuation to $5 billion, the company announced Friday. The funding, led by Accel and Peak XV with participation from Figma Ventures and others, underscores how much investor appetite remains for infrastructure companies powering the current AI boom.

The raise comes just weeks following reports that Supabase was in talks to top the $5 billion valuation, less than five months after its previous round. That speed reflects how quickly demand for AI-driven development is intensifying. As coding assistants reshape how apps get built, Supabase has become a key part of the backend stack, making that shift possible.

Founded in 2020, the San Francisco-based startup started as a Firebase alternative and built its platform on PostgreSQL. Over time, it turned that foundation into a full-service backend that lets developers plug in authentication, APIs, file storage, real-time subscriptions, and vector databases—all without being locked into a proprietary system. Its promise is simple: “build in a weekend, scale to millions.”

Database Startup Supabase Doubles Valuation to $5 Billion Amid AI Vibe Coding Boom

As part of the Series E round, Supabase is setting aside a portion of the funding for its community members to invest alongside institutional backers. The move highlights the founders’ deep ties to their open-source roots and gives longtime supporters a chance to share in the company’s growth.

“Our community is what makes Supabase special, and it’s a priority to give them the opportunity to co-invest in what we’re building,” said Paul Copplestone, co-founder and CEO of Supabase. “With the new capital we’ll continue serving our community of over 4 million developers while building open source tools to scale Postgres.”

Supabase’s momentum mirrors the surge in AI-assisted coding, often called “vibe coding.” Developers now lean on AI tools to sketch, test, and deploy products quickly, and Supabase has positioned itself as the infrastructure that turns those quick experiments into scalable applications. Platforms like Lovable and Bolt run on Supabase, and 40% of startups in the latest Y Combinator batch are reportedly building on it. More than 1.7 million developers use the platform, and its GitHub presence has grown to 81,000 stars. The company now manages over a million databases, with 2,500 new ones created daily.

The business side has been just as aggressive. Supabase told investors it has hit a $70 million annual recurring revenue run rate, up from $20 million a year earlier. That growth caught the attention of investors. In April 2025, it closed a $200 million Series D at a $2 billion valuation, led by Accel with participation from Coatue, Y Combinator, Craft Ventures, and Felicis. That came only seven months after an $80 million Series C led by Peak XV Partners. Altogether, the company has raised more than $500 million.

“ This new financing aims to accelerate Supabase’s efforts to become the backend for everyone, from startups to some of the most demanding, data-intensive enterprise workloads,” said Caryn Marooney, general partner at Coatue. To strengthen its database expertise, Supabase has brought on Vitess co-creator Sugu Sougoumarane to lead clustering efforts. The company is also opening a slice of this funding round to its community members, allowing them to co-invest alongside institutional backers.

Supabase’s timing couldn’t be sharper. Venture activity in AI is surging, with more than half of 2025’s deals going to AI startups, according to PitchBook. The backend-as-a-service market itself is projected to grow from $5.1 billion in 2023 to $23.3 billion by 2032. Competitors like Firebase, Appwrite, Hasura, and Neon are all chasing the same space, but Supabase’s open-source roots and push into AI infrastructure have helped it stand out.

With this new funding, Supabase is doubling down on its ambition to be the go-to backend for the AI era—one database cluster at a time.

Supabase Team (Credit; Supabase)