UPDATE 2-Database startup Supabase valued at $5 billion in funding led by Accel, Peak XV

(Adds details on Supabase and background in paragraphs 3-4, 6-11) Oct 3 (Reuters) – Open-source database startup Supabase said on Friday it has secured a valuation of $5 billion in its latest funding round, as investors continue to back companies riding the wave of the artificial intelligence boom. The $100 million Series E funding was led by venture capital firms Accel and Peak XV. Figma Ventures and other investors also participated in the round. Supabase is a backend platform that helps developers build applications quickly and has benefited from the rise in AI-powered coding assistants. The platform is built on the PostgreSQL open-source database, a system for organizing and managing information online. The latest capital-raise comes just months after Supabase's Series D round, which reportedly valued it at $2 billion. Venture capital activity in the AI domain has continued to surge, with more than half of 2025 deals going to AI startups, according to PitchBook data. Founded by Paul Copplestone and Ant Wilson in 2020, Supabase has now raised more than $500 million in total funding. Coding platforms such as Lovable and Bolt run on Supabase, which caters to more than four million developers. The company's customers also include 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," said Caryn Marooney, general partner at investment management firm Coatue. Supabase has hired database clustering system Vitess' co-creator Sugu Sougoumarane to lead the effort. The company has also reserved an allocation for its community members to co-invest along with institutional investors, as part of the funding round. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)

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