n8n Raises $60M to Revolutionize AI Workflow Automation

The Rise of AI-Powered Workflow Automation: n8n Secures $60 Million

The landscape of developer tools is undergoing a significant transformation driven by advancements in Artificial Intelligence. Consequently, companies facilitating the integration of AI into existing workflows are experiencing substantial growth. n8n, a workflow automation platform, witnessed a remarkable 5X increase in revenue after strategically shifting towards AI compatibility in 2022, with revenues doubling in the most recent two months.

Significant Funding Round

TechCrunch has verified that n8n has successfully raised €55 million ($60 million) in a funding round. Sources familiar with the deal indicate a company valuation of approximately €250 million ($270 million).

Based in Berlin, n8n currently serves over 3,000 enterprise clients and boasts around 200,000 active users. This Series B funding will be allocated to continued technological investment and expansion into new markets, particularly the U.S., where over half of n8n’s user base resides.

Investor Details

Highland Europe spearheaded this funding round, with participation from HV Capital, Sequoia, Felicis, and Harpoon – all previous investors. Sequoia initially led n8n’s seed funding in 2020, while Felicis guided the Series A round in 2021.

From Low-Code Automation to AI Integration

Founded in 2019, n8n initially gained prominence by offering low-code and no-code automation solutions. These tools simplified the process of connecting diverse applications without extensive coding requirements.

The company also distinguished itself through its commitment to “fair code,” a concept extending beyond open source. Fair code establishes principles for compensating open-source creators when their work is commercialized. Jan Oberhauser, n8n’s founder and CEO, championed this idea and maintains a dedicated website promoting fair code practices.

AI as a Catalyst for Growth

While built upon the principles of fair code and benefiting from organic growth within the open-source community – evidenced by over 70,000 “stars” on GitHub – n8n attributes its recent surge in growth to the integration of AI capabilities.

AI, specifically generative AI, naturally complements automation, a strategy also adopted by competitors like Tines and Workato, as well as broader automation platforms such as UiPath.

Simplifying Automation with Generative AI

Automation and low-code solutions have already reduced the complexities of integrating different applications and services. Generative AI further streamlines this process by minimizing the need for technical expertise.

Oberhauser anticipated the potential of AI integration approximately a year and a half ago. He recognized the opportunity to simplify automation implementation by translating instructions into natural language.

“It’s a prompt to build workflow,” explains Oberhauser. Instead of writing extensive code, users can now describe their desired outcome in plain language, such as “get information from X and send it to Y.” He emphasizes the increased ease of making modifications to these workflows.

A Flexible Platform

The platform is designed to accommodate various Large Language Models (LLMs). Users already utilizing specific LLMs can seamlessly integrate them into n8n’s environment. Furthermore, n8n benefits from a robust contributor community actively engaged on platforms like GitHub, providing support and developing workflow templates.

The Tipping Point

Despite initial skepticism, the AI-powered version of n8n experienced a significant turning point last year. This shift coincided with increased discussion surrounding AI in coding, exemplified by substantial funding rounds for companies like Poolside, Codeium, and Magic.

Ease of Use Drives Adoption

Ultimately, n8n’s user-friendliness and practical utility proved to be key factors in attracting both users and investors. The platform’s ability to deliver tangible results distinguished it from the broader hype surrounding AI.

David Blyghton, General Partner at Highland, who led the funding round, stated, “Everyone is trying to leverage AI but struggling to find practical use cases.” He highlighted n8n’s design, scalability, and throughput as crucial factors enabling widespread adoption.

Widespread AI Tool Usage

Oberhauser acknowledges that market acceptance took time, but now reports that approximately 75% of n8n’s customer base actively utilizes the AI tools integrated into the platform.