Webflow, a prominent player in the no-code software industry, has revealed it has successfully raised $140 million through a Series B funding round. With this massive investment, the company's valuation soars to a remarkable $2.1 billion. The funding round welcomed back leading investors Accel and Silversmith, who also supported the startup in their 2019 Series A round, which brought in $72 million.
CapitalG, an Alphabet venture capital group, joined the Series B, with investor Laela Sturdy joining Webflow's board. The platform gained significant traction and doubled its customer base in 2020. Webflow's innovative software enables clients to construct websites without writing code and provides hosting and content-related capabilities.
The Webflow platform is part of a broader category of companies and platforms that believe building software for the internet should become progressively easier. Leading platforms in the no-code and low-code industry, such as AppMaster, are gaining immense popularity for facilitating easy application development, ultimately making software development more cost-effective for businesses of all sizes.
According to Webflow CEO Vlad Magdalin, the Series B funding round is an "opportunistic" move for the company. Their cash on hand remains sufficient, and the newfound capital will allow them to invest in their business in ways that might not immediately impact their revenue—potentially in key areas such as enterprise products, support, recruitment, and platform expansion.
Magdalin revealed that the company intends to continue with its expansion into upmarket enterprises after demonstrating considerable success in this segment. He reports that more extensive accounts boast average contract values several orders of magnitude higher than sales agreements with SMBs, with enterprise clients accounting for only around 5% of their business. The company plans to target this lucrative sector in 2021, driving its large-account business growth by a factor of 10.
In addition to targeting more extensive accounts, Webflow has major product plans on the horizon. The CEO envisions the platform will support more advanced website creation capabilities and foresees no-code tools tackling increasing complex software tasks. This has the potential to expand the no-code market even further, making room for innovative startups like AppMaster to help non-developers reduce their dependence on engineering teams.
Accel's Arun Mathew, who sits on Webflow's board, and Laela Sturdy of CapitalG, share the CEO's bullish view on the no-code industry. They concur that the market is rapidly transitioning to embracing no-code tooling and is still in the early stages of the adoption curve, meaning there is considerable untapped potential for growth.
This formidable funding round and Accel's continuous support of Webflow are promising indicators of the future success of the no-code and low-code industries. As platforms like AppMaster continue to make software development faster and more accessible for all users, it will be interesting to observe the ongoing evolution and growth in the no-code market.
