Supabase in Talks to More Than Double Its Valuation to $5 Billion
The Takeaway
The Takeaway
Supabase, a startup that provides back-end services for ‘vibe coding’ startups like Lovable, is discussing investment offers that could lift its valuation to $5 billion or more. It has told investors that revenue has reached a $70 million annual rate.
Supabase, a database startup that has benefited from the rise of artificial intelligence-powered coding assistants, is in talks with investors about offers that could raise its valuation to at least $5 billion, according to two people with direct knowledge of the discussions.
The investment, if finalized, would more than double its valuation from April, when investors led by Accel valued the five-year-old startup at $2 billion including the investment.
Supabase sells database management software to AI application developers, charging a monthly fee based on the database size and storage needs of the customer. It also offers a free option with more limited features. The startup enables developers to build upon PostgreSQL, an open-source database known for supporting financial and e-commerce applications. It competes with Google’s Firebase, which also provides back-end tools for app developers.
The AI app boom has boosted the growth of Supabase and a number of other startups that sell software tools to app developers. These include cloud and AI services company Vercel, database software provider ClickHouse and Neon, which Databricks recently bought for about $1 billion to meet expected demand for apps developed by AI-powered agents.
Revenue at Supabase has recently increased to an annual rate of $70 million, up from $20 million a year ago, the company has communicated to some prospective investors.
The amount the company is raising couldn’t be learned and the valuation could change. The San Francisco-based startup could use the new money to grow the business by acquiring other startups, according to one of the people.
Supabase didn’t respond to requests for comment.
The company is getting a tailwind from popularity of AI coding assistants, including Cursor-maker Anysphere and Bolt-maker Stackblitz. App makers using these assistants need databases to support their apps.
Lovable, a coding assistant that enables developers to design apps and set up Supabase databases without leaving Lovable, said in July it was generating revenue at a $100 million pace, up from $1 million eight months before. It recently received investment offers that value it at $5 billion, up from a $1.8 billion valuation in a July round.
Existing investors in Supabase include Accel, Felicis, Coatue Management and Craft Ventures. The company has raised almost $400 million, according to The Information’s Generative AI Database.
The startup was founded in 2020 by Paul Copplestone and Ant Wilson, who launched the business after participating in the Y Combinator accelerator program later that year.