On November 12, 2024, LocalStack announced it has successfully raised $25 million in a Series A funding round led by Notable Capital, with participation from CRV and Heavybit.

This new funding will enable LocalStack to enhance its market presence in the U.S. and develop advanced features like chaos engineering and application resiliency testing, aimed at boosting developer productivity.

Founded in 2017 by Waldemar Hummer and Gerta Sheganaku, LocalStack began as an open-source project designed to help developers work offline while commuting.

The startup transitioned to a full-time business in 2021 and has since expanded its offerings, serving around 900 paying customers, including major companies like Apple and IBM.

Glenn Solomon from Notable Capital praised LocalStack for its strong community engagement, which includes over 56,000 GitHub stars and 25,000 Slack users.

LocalStack allows developers to run a full AWS environment on their laptops, significantly accelerating development cycles and reducing reliance on costly cloud resources.

As organizations grapple with rising cloud costs, which have surpassed $79 billion annually, LocalStack's localized testing environment emerges as a cost-effective alternative.

LocalStack currently handles over 8 million weekly sessions and has achieved more than 280 million Docker pulls, indicating its widespread adoption among developers.

Looking ahead, LocalStack aims to expand its offerings to support Snowflake and Microsoft Azure, with hopes of launching Azure support by 2025.

LocalStack's platform supports over 100 AWS services with near-exact emulation, providing a reliable alternative to traditional AWS tools.

The company offers two main products: an emulator that allows local use of AWS APIs via a Docker image, and a cloud platform that includes features such as telemetry data and collaboration tools.

LocalStack retains an open-source community version with about one-third of AWS services available publicly, while two-thirds are reserved for paying customers.