Webflow, a Cloud-based low-code vendor, has secured US$140 in investment. The new round of investment values the vendor at US$2.1 billion.
Why it’s Important
The low-code market exploded over the last year. Newer entrants, such as Webflow (founded in 2012), are attracting significant venture capital. Just 17 months ago, Webflow took $72 million investments which valued the company at $400 million. The new investments thrust the vendor into unicorn status. At the same time, well-established low-code vendors such as Nintex and Microsoft are consolidating and expanding their portfolios to include robotic process automation, process modelling and integration tools.
The market for low-code is not yet at the peak of its feverish growth, but IBRS cautions that current rates of investment and hype are unsustainable. There will be turmoil as the mark begins to consolidate, likely in 2023 to 2026.
- Development team leads
- Workforce transformation leads
Low-code development is not a new concept. However, the uptake of Cloud platforms, common data models, robot process automation and business modelling are extending the notion of low-code development from simple ‘e-forms’ tools to services that enable enterprise-grade process digitisation.
The pandemic and working from home has supercharged the need for process digitisation, and low-code vendors are all seeing strong sales growth.
Unfortunately, the term ‘low-code’ is starting to become meaningless, as vendors that provide very different application development tools and platforms attach the term to their products. IBRS recommends organisations view ‘low code’ as a broad term that covers a spectrum of capabilities, as detailed in 'How to succeed with eforms Part 1: Understand the need'. It is likely that most organisations will need to acquire two low-code products to cover different parts of this spectrum: one product aimed at non-technical staff for simple e-forms, and another product to increase the agility of pro-developers in the ICT group.
Consider the financial backing and stability of a vendor when selecting low-code tools, as market consolidation is on the horizon. You do not wish to be developing business processes on a platform they will outlive.
Related IBRS Advisory
- How to succeed with eforms Part 1: Understand the need.
- Workforce transformation part 4: Non-techies are taking over your developers’ jobs – Dealing with the fallout
- Aussie vendor radar: Nintex joins the mainstream business process automation vendor landscape
- IBRSiQ: Can IBRS assist in identifying a mobility platform other than Xalt?