Tembo capitalizes on database boom, secures new funds for expansion

As the demand for artificial intelligence (AI) surges, so does the need for expertise in managing databases, a vital component of any AI pipeline. Databases are essential for storing the data used to train, operate, and refine AI systems, and effective data management can ease the pathway to AI adoption within enterprises. Benefiting from this database boom is Tembo, a startup developing a platform that allows developers to deploy various versions of Postgres, the open-source database system, to both cloud-based and local environments.

On Monday, Tembo announced it had secured $14 million in funding in a round led by GreatPoint Ventures, with involvement from Venrock, Grand Ventures, Wireframe Ventures, Defined VC, and Cintrifuse Capital. Tembo's founder and CEO, Ry Walker, highlighted the company’s mission: "We’re harnessing the power of Postgres for everyone to use. With Tembo, enterprises can reduce costs by streamlining their databases and improve efficiency through simpler data pipelines."

Walker, who studied computer science at the University of Cincinnati before dropping out to establish his web agency Sharkbytes in the '90s, later founded Differential, a venture studio that birthed Astronomer, an open-source data engineering pipeline. His experiences at Astronomer inspired him to create Tembo, with the intention of applying his model to the database industry for even greater impact.

Tembo offers managed, metered software-as-a-service Postgres solutions, as well as self-hosted options, enabling setup and orchestration of Postgres databases. Users can create databases featuring auto-scaling and soon, auto-tuning for self-maintenance. Recently, Tembo introduced Machine Learning Stack, facilitating the development and deployment of AI models, including the open generative AI models provided as a service, integrating workflows alongside their databases.

Walker emphasized the benefits of Tembo in addressing data management challenges: "The astronomical increase in data has led to massive sprawl, which is both inefficient and costly. With Tembo, enterprises can minimize their databases and simplify data pipelines, thereby reducing expenses and improving efficiency." With $20 million in capital and a team of around 25 based in Cincinnati, Tembo aims to prioritize product development, hiring, and marketing efforts.

Faced with competition from rivals such as the new startup by Postgres creator Mike Stonebraker, Tembo remains confident in its approach. "We’re at a pivotal moment to assist enterprises in leveraging Postgres for their growing data capture and storage needs," Walker noted. "The global database market is expanding at a rate of 15% annually, projected to reach $200 billion by 2027. Our goal is as ambitious as the opportunity ahead. We’re committed to harnessing the power of Postgres for everyone to use."