Supabase, a startup fostered by Y Combinator that provides an open-source alternative to platforms like Google’s Firebase, has announced a $6 million funding round. This investment was spearheaded by Coatue, with additional participation from YC, Mozilla, and approximately 20 individual angel investors.

Currently, Supabase offers support for PostgreSQL databases and authentication features, with plans to soon include storage and serverless capabilities. It delivers a complete set of tools for database interaction – including real-time change notifications – alongside a user-friendly web interface for database management. While comparisons to Google’s Firebase are natural, the team emphasizes that Supabase isn’t intended as a direct substitute. A key distinction is Supabase’s utilization of PostgreSQL, unlike Firebase’s NoSQL database approach.

The team actively leverages and contributes to established open-source projects. For instance, a dedicated Supabase employee maintains the PostgREST tool, which facilitates the creation of APIs built on top of the database.

“Our goal isn’t to create an entirely new system,” explained Paul Copplestone, co-founder and CEO of Supabase. “We believe robust, scalable, and well-established open-source products already exist, but often lack ease of use. Supabase currently integrates six tools, with a seventh on the horizon. We develop tools internally when suitable options aren’t available, and we always open-source our creations. Otherwise, we prefer to utilize existing solutions.”

Traditionally, open-source projects launch a tool and then offer a hosted version – potentially with added features – to generate revenue. Supabase adopted a different strategy, launching a hosted version immediately.

While the code is available for self-hosting, running a PaaS independently presents significant challenges, which is why the team chose this approach. Copplestone highlighted that Firebase offers a streamlined setup process, and Supabase aimed to replicate that experience. “Self-hosting simply can’t deliver the same immediate impact,” he stated. “The ‘wow factor’ comes from a hosted platform where everything is ready with a single click and a few minutes of setup time.”

He also pointed out the importance of ensuring the company could support its expanding suite of tools, and monetizing through its database services proved to be the most effective method.

Similar to other Y Combinator startups, Supabase finalized its funding round following the accelerator’s demo day in August. The team considered a SAFE agreement but ultimately secured an institutional round with favorable terms from a suitable group of investors.

“Competing with Firebase’s generous free tier will require substantial investment,” Copplestone noted. “Databases are inherently stateful, meaning they can’t simply be shut down to reduce costs. This funding provides a substantial runway and, crucially, allows developers building on our platform the time they need to develop and monetize their own projects.”

The company intends to use the new funding to further develop its tools and expand its team to support its growth.

“Supabase’s ability to enable rapid development and scaling resonated strongly with us,” said Caryn Marooney, general partner at Coatue and former VP of Global Communications at Facebook. “We are pleased to collaborate with this team and are impressed by their dedication to developers, speed, and reliability.”