Convex raised $24 million in November 2025 in a round led by Andreessen Horowitz and co-led by Spark Capital. This follows the company's $26 million Series A in April 2022, also led by a16z.

The company initially raised a $3.5 million seed round in November 2021 from investors including Neo Ventures, Netlify's Jamstack Innovation Fund, General Catalyst, SV Angel, Fathom, #ANGELS, Alumni Ventures, and Upscalers.

Altogether, Convex has raised $53.5 million in total funding.

Convex is a reactive database and backend runtime that lets frontend developers treat backend state like React component state. When underlying data changes, every subscribed client automatically invalidates and re-renders without manual cache management or polling.

The platform has three integrated layers that work together.

The database layer is a document store that developers interact with entirely through TypeScript calls rather than SQL. When you run `npx convex dev`, Convex automatically provisions a database that tracks every field your queries touch. This enables automatic live updates with strong consistency guarantees (when a mutation commits, Convex knows which queries to re-run and which WebSocket subscriptions to refresh).

The function runtime handles different types of operations through isolated V8 environments. Queries are pure and deterministic for reads, mutations provide ACID transactions for writes, actions handle side effects like third-party API calls, and HTTP actions create REST endpoints. The system automatically queues, retries, and manages scheduled functions and cron jobs.

The client ecosystem includes official SDKs for React, Vue, Svelte, React Native, Next.js, Swift, and Kotlin. Hooks like `useQuery()` keep UI state synchronized with backend changes automatically. The platform also generates OpenAPI specifications for teams using other languages.

Convex Components act like mini-backends that developers can install with a single line in their configuration. These components handle common patterns like rate limiting, work queues, and RAG pipelines while maintaining isolated tables and transactions to avoid schema conflicts.

Convex operates as a B2B SaaS platform targeting frontend developers who want to build real-time applications without managing backend infrastructure. The company positions itself as the most developer-friendly option in the backend-as-a-service category.

The monetization model combines subscription tiers with usage-based pricing. Teams start on a generous free plan that supports substantial development and prototyping. The Starter plan introduces pay-as-you-go pricing for growing applications, while the Professional tier at $25 per developer per month targets teams that need collaboration features and higher limits.

Enterprise customers pay based on scale, compliance requirements, and support needs. These accounts often require data sovereignty options, service level agreements, and dedicated engineering support, commanding significantly higher monthly fees.

The business model benefits from strong expansion dynamics. As applications grow in complexity and user base, they naturally consume more database operations, storage, and compute resources. Teams also tend to add more developers over time, driving per-account revenue growth through both usage expansion and seat expansion.

Convex maintains relatively lean operations by building on cloud infrastructure and focusing on developer experience rather than enterprise sales complexity. The product-led growth model allows the company to scale efficiently while maintaining high gross margins typical of developer-focused SaaS platforms.

The component marketplace represents a potential new revenue stream where third-party developers can monetize backend modules, with Convex taking a platform fee while expanding the ecosystem's value proposition.

Google Firebase dominates this category with over a decade of ecosystem development and deep integration with Google Cloud Platform. Firebase offers comprehensive real-time database capabilities, authentication, storage, and cloud functions with a generous free tier that attracts millions of developers.

AWS Amplify Gen 2 provides a TypeScript-first development experience with automatic infrastructure provisioning and deep hooks into the broader AWS ecosystem. While powerful, it requires developers to learn AWS-specific patterns and locks them into Amazon's cloud services.

Cloudflare D1 with Workers offers serverless SQLite that runs at the edge with compelling pricing and global distribution. However, it lacks the reactive-by-default behavior that makes Convex distinctive and requires more manual setup for real-time features.

Supabase has emerged as the fastest-growing player in this space, reaching $70M ARR by leveraging the explosion in AI coding tools. Its Postgres-first approach and comprehensive feature set make it the default recommendation for many AI-powered development platforms.

PlanetScale focuses specifically on database excellence with MySQL-compatible serverless databases and branching workflows. Rather than competing as a full backend platform, it positions itself as the graduation path for applications that outgrow simpler solutions.

Appwrite and Pocketbase offer open-source alternatives with self-hosting options, appealing to developers who want more control over their infrastructure while maintaining the convenience of backend-as-a-service features.

ElectricSQL and SurrealDB target the local-first application market with sophisticated offline sync capabilities. These platforms appeal to developers building mobile-heavy applications that need to work reliably without internet connectivity.

Liveblocks specializes in collaborative features like real-time cursors, comments, and presence indicators. While narrower in scope than Convex, it competes for mindshare among developers building collaborative applications.

The Convex Components marketplace transforms the platform from a database service into an application platform where developers can package and monetize backend modules. This creates a new revenue stream while expanding the platform's capabilities without internal development costs.

Built-in OLAP and dashboard capabilities will move Convex upstream into business intelligence budgets. By eliminating the need for separate analytics warehouses, Convex can capture more value from each customer relationship and compete with the traditional extract-transform-load workflow.

Local-first sync and offline support will open mobile-heavy verticals like field operations, retail point-of-sale, and creator tools. These markets require instant optimistic updates and reliable offline functionality that current web-centric solutions struggle to provide.

Vector search and AI capabilities position Convex to capture growing spend on LLM context management, recommendation engines, and RAG pipelines. As AI features become standard in applications, having native vector search eliminates integration complexity.

Free-tier preview deployments lower friction for hobbyists and independent developers who often become the decision-makers at larger companies. This bottoms-up adoption model has proven effective for developer tools that achieve viral growth through side projects.

Migration tools and documentation for Postgres-to-Convex transitions reduce switching costs for the massive installed base of relational database applications. As teams hit scaling challenges with traditional databases, Convex provides a clear upgrade path.

Community growth initiatives including build bounties, hackathons, and active Discord engagement seed thousands of experimental projects. Many of these eventually graduate to production workloads as developers gain confidence with the platform.

EU data-sovereign hosting launched in early 2026 with Canada and Australia planned next. This immediately opens markets with GDPR, SCHREMS-II, and data residency requirements that represent substantial untapped demand.

The enterprise plan waitlist indicates significant demand for compliance features, forward-deployed engineering, and service level agreements. Converting these prospects requires building out sales and support capabilities but offers much higher per-customer revenue potential.

International developer communities represent massive growth opportunities as coding education and startup ecosystems expand globally. Convex's focus on developer experience and generous free tiers position it well for international expansion.

Hyperscaler competition: Google, AWS, and Microsoft have vastly more resources to invest in developer tools and can bundle backend services with their broader cloud platforms. If they prioritize reactive database features, they could commoditize Convex's core differentiators while offering better pricing through cross-subsidization from other cloud services.

AI coding platform integration: As Bolt.new, Lovable, and Replit launch their own platform-native databases, they may reduce recommendations for third-party backend services. These platforms have direct relationships with millions of developers and strong incentives to capture recurring revenue rather than just creation fees, potentially cutting off Convex's primary growth channel.

Open source fragmentation: The proliferation of open-source alternatives like Supabase, Appwrite, and PocketBase creates pricing pressure and feature competition. If the backend-as-a-service market becomes commoditized around open-source solutions, Convex's proprietary approach may struggle to justify premium pricing despite superior developer experience.