Upstash introduced a $1.9 million seed spherical nearly precisely two years in the past, and an thought for constructing a serverless knowledge platform for data-intensive purposes constructed with Redis and Kafka. That doesn’t really feel like that way back, however quite a bit has modified within the knowledge panorama since then.

Quick-forward to now and the corporate is boasting ARR of $1 million, a $10 million Sequence A led by a16z and a shiny new vector database. What’s modified in these two brief years for the reason that firm launched is the expansion of generative AI, which as you could have seen is a fairly data-intensive utility.

Firm founder and CEO Enes Akar says that his thought to create a consumption-based pricing mannequin, which means you don’t pay till knowledge begins shifting by the system, has been a compelling one to builders, particularly these utilizing Kafka or Redis for knowledge.

He says that the pricing mannequin reduces the danger for creating purposes. “Consumption pricing is our greatest differentiation out there as a result of it removes boundaries for builders. As a developer, if I begin an organization I don’t must pay till I get some actual site visitors and it turns into actually fashionable,” Akar instructed For Millionaires.

The method appears to be working with the corporate rising from 12,000 builders in March 2022 to 85,000 immediately. That type of traction tends to draw consideration, and Akar says Andreessen Horowitz truly approached him about funding, not a narrative you hear a lot lately in occasions of tightening purse strings from traders.

He bought an unsolicited e-mail final June from a16z providing a gathering, however Akar says he wasn’t in search of further funding. Actually, he was extra enthusiastic about staying unbiased whereas he constructed up the enterprise, however once they provided to have a chat over Indian meals in downtown Palo Alto, he determined to at the very least have a chat, as a result of he joked, he actually needed to attempt that restaurant anyway.

Over dinner it got here up that he didn’t have to begin a board of administrators to get this funding, and that bought his consideration due to his want to stay unbiased so long as he may. “I felt prefer it was nonetheless early. I nonetheless had cash. I additionally had some aggressive aims like creating new merchandise, however I instructed them I wasn’t ,” he stated.

By August, nevertheless, as he watched generative AI start to essentially take maintain, he had second ideas. Akar, who’s from Eskisehir, Turkey, was again residence on trip when he determined to name again to see in the event that they had been nonetheless enthusiastic about offering the funding. It turned out that they had been and so they started negotiating. The deal closed a couple of month later.

The brand new vector database, which performs a key function in serving to discover data in generative AI purposes is a direct response to the large curiosity on this know-how, and is particularly concentrating on AI builders. “So earlier than Upstash Vector, we had seen many builders utilizing Upstash to develop AI purposes along with OpenAI APIs or Hugging Face APIs and so they use Upstash Redis for caching and storing knowledge. Now we’ve launched Upstash Vector, which they’ll use identical to Pine Cone or different vector databases,” he stated.

The corporate, which at the moment has round 16 staff, with lots of the staff nonetheless primarily based in Turkey, just lately employed Melek Pelen Esin, his longtime pal, whose background contains an MBA from MIT, a stint at McKinsey and time at Fb in a gross sales administration place, as COO. She’s working the enterprise aspect of the home, whereas Akar runs engineering. They’re each primarily based in Silicon Valley.

They plan to rent one other 15 or so staff within the subsequent yr, concentrating on skilled help and buyer success.