Neon, a two-year-old company, has raised $46 million to advance its serverless Postgres offering in the cloud, aiming to become the default choice for developers seeking a modern database infrastructure. Despite the dominance of major cloud hyperscalers, Neon positions itself as a streamlined alternative by focusing on serverless Postgres and innovative features like Edge Functions and Vector Search. The company capitalizes on the widespread adoption of Postgres, which is favored for its stability and open-source nature, and aims to simplify developer workflows and database operations. Neon partners with companies like Vercel, Replit, and Hasura and provides a solution for those looking to distribute or embed Postgres within their platforms. Neon's strategy is to gradually expand its capabilities and become the go-to database for modern cloud developers, leveraging its partnerships and innovative offerings to capture market share from larger cloud providers.