The San Mateo, California-based company behind the open-source Neo4j graph database used by businesses such as eBay and Walmart says the new money will go into software development inhouse, as well as expanding the community and its sales operation.
Graph databases use nodes and the connections between them to describe networks and contexts. Early last year, Forrester Research predicted that just over a quarter of enterprises will be using such databases by 2017 to support next-generation business applications that need connected datasets.
"Graph databases simplify and speed up access to data that is complex and contains many connections. [They] use graph structures with nodes, edges, and properties to store and access connected information, and can traverse parts of the data without touching the whole graph," Forrester said.
In the latest DB-Engines chart on database popularity changes, graph databases emerge as the category seeing the greatest growth, while Neo4j sits in first position in the DB-Engines league table of graph databases ranked in terms of popularity.
According to Neo Technology, Neo4j 2.0 has been downloaded more than 500,000 times since its launch last January, with thousands of production deployments. The database is being used for applications including real-time pricing, online product and service recommendations, fraud detection, graph-based search and the internet of things.
The $20m series C funding round, led by Creandum with Dawn Capital and existing investors Fidelity Growth Partners Europe, Sunstone Capital and Conor Venture Partners, takes the total raised by Neo Technology to $44.1m.
"There are two strong forces propelling our growth: one is the overall market's increasing adoption of graph databases in the enterprise. The other is proven market validation of Neo4j to support mission-critical operational applications across a wide range of industries and functions," Neo Technology CEO and co-founder Emil Eifrem said in a statement.
As part of the funding announcement, Neo Technology said Johan Brenner of Creandum is joining the company's board.
More on databases
- MongoDB snaps up WiredTiger and its storage expert team
- Why 2015 will be big for NoSQL databases: Couchbase CEO
- MongoDB CTO: How our new WiredTiger storage engine will earn its stripes
- Splice Machine's SQL on Hadoop database goes on general release
- Postgres and MySQL: EnterpriseDB unveils new way to link these open source databases
- MySQL: Why the open source database is better off under Oracle