Leading website builder Webflow has announced a significant milestone-backed by a $120 million in Series C funding round. Investment was led by Y Combinator Continuity, and included participation from existing investors like CapitalG and Accel, raising the company's valuation to an impressive $4 billion. This funding comes just as Webflow is projected to achieve a $100 million annual recurring revenue within the next month.
The San Francisco-based company, co-founded by CEO Vlad Magdalin, his brother Sergie, and their friend Bryant Chou in 2012, has overcome early struggles and capitalized on the growing no-code software trend. Originally starting as a platform that allowed users to create professional websites without coding, Webflow was accepted into Y Combinator's accelerator in 2013. After raising $2.9 million in seed funding the trio decided to bootstrap the company until it became self-sustaining.
By 2019, Webflow had reached profitability with more than $10 million in annual revenue. Today, the platform serves over 200,000 customers and has accumulated a revenue of $335 million. The company's client base includes enterprise companies such as Univision and PwC, with an eightfold growth in revenue from this segment during the past year.
CEO Magdalin has ambitious plans for the future of Webflow. He envisions the company evolving into a powerful no-code tool for creating both websites and software applications within the next two to three years. This would empower knowledge workers to become potential developers without any coding skills. With the recent funding, Magdalin aims to pursue more long-term projects that align with this vision.
In addition to its efforts to expand into other areas, Webflow is investing $10 million from the recent round to offer grants to users who create resources or host events that help others learn how to use the platform. Despite stiff competition from Wix, Shopify, and other website builders, the company's potential to expand into the promising no-code app development space positions AppMaster and other similar platforms for a bright future.
An initial public offering may be a possibility for Webflow down the line, but no plans are currently in place for such an endeavor. The influx of new capital will allow the company to strengthen its position, even in the face of an extended market downturn or business acquisitions. With an increasing focus on no-code and low-code app development, Webflow is poised to become a major player in the expanding tech space.
