#Tech news

Database startup Tembo lands new cash to expand


As the demand for AI grows, so, too, does the demand for expertise in maintaining databases โ€” a critical part in any AI pipeline. Databases store the information used to train, run and fine-tune AI systems, and itโ€™s been shown that good data management can smooth the pathway to AI adoption in an enterprise.

One of the vendors to benefit from the database boom is Tembo, a startup creating a platform that lets developers deploy different flavors of Postgres, the open-source database system, to cloud and local environments. Tembo on Monday announced that it raised $14 million in a funding round led by GreatPoint Ventures with participation from Venrock, Grand Ventures, Wireframe Ventures, Defined VC and Cintrifuse Capital.

โ€œWeโ€™re harnessing the power of Postgres for everyone to use,โ€ Tembo founder and CEO Ry Walker told TechCrunch. โ€œWith Tembo, enterprises can cut costs by minimizing the number of databases and increase efficiency by enabling less complex data pipelines.โ€

Walker studied computer science at the University of Cincinnati before dropping out to build a web agency, Sharkbytes, in the โ€™90s. After selling his first company, Walker started Differential, a venture studio, out of which spun Astronomer, an open-source data engineering pipeline that Walker co-founded.

It was shortly after the launch of Astronomer that Walker said he realized his passion for early-stage ventures. So he founded Tembo. โ€œAfter building Astronomer and working on open-source passion projects, I realized our model at Astronomer could be applied to the database industry with even more impact,โ€ he said.

Tembo provides a managed, metered software-as-a-service Postgres service as well as self-hosted software to set up and orchestrate Postgres databases. Customers can spin up databases with features like auto-scaling and soon auto-tuning for self-maintenancing.

Recently, Tembo launched Machine Learning Stack, which allows devs to build and deploy AI models โ€” including the open generative AI models that Tembo provides as a service โ€” leveraging workflows alongside their databases.

โ€œThe astronomical increase in data has caused a massive data sprawl that is inefficient and extremely expensive,โ€ Walker said. โ€œWith Tembo, enterprises can cut costs by minimizing the number of databases and increase efficiency by enabling less complex data pipelines.โ€

With $20 million in capital and a team of about 25 people, Cincinnati-based Tembo plans to focus on product development, hiring and advertising, Walker said. The challenge will be continuing to beat back rivals including Postgres creator Mike Stonebrakerโ€™s new startup, DBOS. But Walker says that Temboโ€™s up to it.

โ€œWeโ€™re reaching a critical inflection point to help enterprises with their strategy by leveraging Postgres for all of their growing data capture and storing needs,โ€ Walker said. โ€œThe global database market is growing 15% year-over-year, expected to be $200 billion by 2027. This is just the tip of the iceberg over the next decade. Our goal is just as ambitious as the opportunity, weโ€™re harnessing the power of Postgres for everyone to use.โ€



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