Supabase Secures $5 Billion Valuation in Series E Funding Round

Open-source database startup Supabase announced on Friday that it has achieved a valuation of $5 billion following its latest funding round. This significant milestone comes as investors continue to support companies capitalizing on the expanding artificial intelligence market. The $100 million Series E funding was led by venture capital firms Accel and Peak XV, with participation from Figma Ventures and other investors.

Supabase provides a backend platform that enables developers to build applications efficiently. The company’s growth has been bolstered by the increasing use of AI-powered coding assistants. Supabase is built on the PostgreSQL open-source database, an established system for organizing and managing online information. This latest funding round follows a Series D round earlier this year, which reportedly valued the company at $2 billion.

Investment Trends in AI and Supabase’s Growth

Investment activity in the AI sector has been notably robust, with more than half of the deals in 2025 directed towards AI startups, according to data from PitchBook. Founded in 2020 by Paul Copplestone and Ant Wilson, Supabase has raised over $500 million in total funding to date. The platform serves more than four million developers, including notable enterprises such as PwC, McDonald’s, and GitHub Next.

“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,” stated Caryn Marooney, a general partner at investment management firm Coatue. To further enhance its capabilities, Supabase has appointed Sugu Sougoumarane, co-creator of the database clustering system Vitess, to lead its development initiatives.

In a notable move to engage its community, Supabase has also set aside a portion of the funding for community members to co-invest alongside institutional investors. This effort underscores the company’s commitment to fostering a collaborative ecosystem as it positions itself at the forefront of backend solutions in the evolving tech landscape.

As Supabase continues to expand its influence and offerings, its ability to attract significant investment reflects broader trends in the technology sector, particularly the increasing demand for innovative solutions that streamline application development.