Supabase, a Postgres development platform which has positioned itself as an open source competitor to Google's Firebase, continues to demonstrate just how commercially successful open source projects can be. Supabase had its valuation shoot to $5 billion after it raised a recently confirmed Series E funding round $100 million led by Accel and Peak XV. Despite external interest in the round, Supabase's Series E was nearly exclusively comprised of existing investors, with the only newcomer being Figma.

Alongside its Series E announcement, Supabase confirmed it will hold a $1M community round in which early customers and contributors will be allowed to pitch in. Relatedly, Supabase confirmed that part of the raised funds will be destined towards liquidating employee secondaries. Historically, Supabase has enabled its employees to sell 25% of their vested stock in every single funding round it has held, and the recent Series E was no exception.

The round is also notable for being Supabase's third in about a month, as it follows a $200M Series D which took place this April, and an $80M Series C in September last year. While Supabase's valuation was not publicized after the Series C, it was estimated to have hit $900 million, which means the company's value has increased more than fivefold in the span of about a year.

The ongoing investor interest in Supabase is not unfounded: the company claims its developer community has reached 4 million, and more importantly, Supabase has profited enormously from the rise of vibe-coding. While Supabase actually had its start as a Y Combinator alum a few years before the advent of generative AI, it is now the database development platform of choice for those building with AI tools including Cursor and Claude Code. It is also the default in tools like Lovable, Bolt and Figma, and has been chosen as a default backend to build and scale apps by over 1000 Y Combinator graduates, as well as industry-leading enterprises like PwC, McDonald’s, and 1Password.