Supabase, an open source database founded in 2020, has announced a $200 million series D funding round, valuing the company at $2 billion. The round, led by Accel, with participation from Coatue, Y Combinator, Craft Ventures, and Felicis, marks a significant milestone for the New Zealand-based startup.

This fresh funding comes just seven months after Supabase raised $80 million, led by Peak XV (a Sequoia spinoff) and David Sach's Craft Ventures. The startup has now raised a total of approximately $398 million. According to PitchBook, Supabase's valuation stood at around $900 million during its previous funding round.

Supabase's success can be attributed to its unique approach to database management. The company offers an open source version of Firebase, Google's database AI app development platform, and hosts apps for up to $600 a month, or more for enterprise users. By combining the open source SQL database Postgres with other enterprise-grade open source tools, Supabase provides features like authentication, auto-generated APIs, file storage, and a vector toolkit, making it an attractive choice for developers.

The startup's popularity has been growing rapidly, especially among independent and enterprise developers. As a Y Combinator alum, Supabase has become a go-to tool for YC startups, but its appeal extends beyond that. Felicis managing partner Aydin Senkut notes that the company has experienced "insane growth" in the last two years, with its community of developers surpassing 1.7 million and growing by thousands every day. The project has also garnered over 81,000 stars on GitHub.

Supabase's growth can be attributed to its ability to ease the process of setting up a SQL database, making it an ideal choice for vibe coding tools like fast-growing Lovable. As Senkut puts it, "It's becoming the default back end for AI apps and myriad other categories of apps." The company's marketing tagline, "build in a weekend: scale to millions," resonates with developers who need to support thousands to millions of users.

As the tech industry shifts towards AI-developed, AI-powered, and AI-managed apps, Supabase is positioning itself as a leading choice for database management. While Oracle's dominance in the enterprise space is unlikely to be threatened, Supabase's rise is an interesting trend to watch. The next crop of billion-user apps will likely rely on AI, and Supabase is already establishing itself as a go-to database for these applications.

In conclusion, Supabase's $200 million series D funding round marks a significant milestone for the company, solidifying its position as a leader in the database management space. As the tech industry continues to evolve, it will be interesting to see how Supabase continues to grow and adapt to the changing landscape.