Formstack Raises $425M to Empower No-Code Automation
The Rise of Automation and No-Code Platforms
In recent times, platforms designed to enhance automation within the workplace, and those that empower individuals to construct tools for self-service work optimization, have experienced substantial growth in adoption. A company merging these two trends – offering a no-code platform for building automated workflows – has recently secured significant funding to capitalize on this expansion.
Formstack Secures $425 Million in Funding
Formstack, a provider of diverse templates and integrations enabling users to create custom workflow automations, has announced a $425 million equity funding round. The capital will be allocated towards acquiring new customers and extending its reach into additional international markets.
A Growing User Base
Currently, Formstack serves approximately 238,000 users across 25,000 organizations. Notable clients include prominent entities such as Twitter, Netflix, the NHL, and the Cleveland Clinic.
Focus on Empowering Non-Technical Users
“Our core mission is to assist users without technical expertise in achieving their objectives, thereby conserving both time and resources,” stated Chris Byers, CEO of Formstack. He emphasized that the funding was raised not out of operational necessity – the company is profitable – but due to the immense potential of enabling non-technical users, estimated at a $100 billion global market.
“Around 25% of our customer base is already international, indicating substantial growth opportunities,” Byers added.
Continued Product Investment
The funding will also facilitate ongoing investment in product development, including the addition of further integrations to complement the existing 250 connections with leading email, payment, CRM, CMS, and document storage services.
Investment Details and Company History
Silversmith Capital Partners and existing investor PSG are leading the funding round. PSG, alongside Greater Sum Ventures, previously invested in the company in 2018. This represents Formstack’s most significant financing event since then, although specific financial details and management information remain undisclosed, except that revenues have more than tripled since 2018 while maintaining profitability.
The Trend of Automation and No-Code Tools
Formstack operates at the forefront of current enterprise IT trends – RPA and other automation technologies are driving efficiency and cost reduction. The increasing sophistication of no-code tools has broadened access to IT development and implementation within businesses. However, the company’s longevity highlights the enduring relevance of low-code, no-code solutions and automation concepts.
From Online Forms to Comprehensive Automation
Established in 2006 in Fishers, Indiana, Formstack initially aimed to simplify the creation of online forms for customer data collection and automated integration with back-office applications.
“Our initial offering was a drag-and-drop form builder for lead capture,” explained Byers. “We’ve since expanded beyond data collection to include document generation.” The company has augmented its capabilities with native features like e-signature, alongside its extensive integration network.
Founder's Journey
Chris Byers joined the company approximately five years after its founding. Founder Ade Olonoh, who remains on the board, subsequently launched Formspring – a different venture initially focused on Q&A and social networking. While Formstack has thrived, Formspring faced challenges amid the rise of platforms like Facebook and is no longer operational.
Applications in Healthcare and Beyond
Formstack’s solutions have gained traction in sectors like healthcare, where automated workflows streamline patient data intake and triage processes, particularly crucial during times of workforce strain and the need to minimize physical contact.
Adapting to a Changing World
“The pace of digital transformation has accelerated, driving increased usage of our platform to enhance customer and employee experiences, and to support remote work,” Byers noted. Formstack is developing applications to assist organizations in complying with vaccine mandates, providing streamlined forms for status verification.
Investor Perspectives
“Many businesses are seeking to streamline and digitize processes, but often lack the technical resources for implementation and maintenance,” said Jim Quagliaroli, managing partner at Silversmith. “Formstack’s no-code solution empowers non-technical employees to become ‘citizen-developers’ and address these challenges. We are excited to partner with Chris, his team, and PSG to support the company’s rapid growth.”
Tom Reardon, managing director at PSG, added, “Formstack is a leader in workplace productivity innovation, consistently delivering solutions that enhance organizational efficiency. We’ve been pleased to witness their significant growth and look forward to continuing our partnership with Silversmith to support their expansion.”
Correction
Note: An earlier investment was not a leveraged buyout as previously stated.