The Rise of Low-Code/No-Code Platforms and Genesis's $45 Million Funding

Enterprises are increasingly adopting low-code and no-code tools to enhance their technological capabilities, particularly when lacking the resources for intricate integrations. Today, Genesis, a startup specializing in low-code finance solutions, announced a significant funding round aimed at capitalizing on this growing trend and broadening its market reach.

Genesis Secures $45 Million in Series B Funding

Genesis, which has primarily served financial services firms by providing non-technical personnel with tools for real-time risk monitoring, high-frequency trade management, and other critical activities, has successfully raised $45 million. The company intends to utilize these funds to extend its offerings to additional sectors facing similar risk management and compliance challenges, such as healthcare and manufacturing, while simultaneously enhancing its existing platform.

Strategic Investors Back Genesis

This Series B funding round features a combination of financial investors and strategic partners who already integrate with Genesis’s tools. The investment was led by Accel, with participation from GV (formerly Google Ventures) and Salesforce Ventures. Existing investors, including Citi, Illuminate Financial, and Tribeca Early Stage Partners, also contributed to this round.

Genesis's Established Customer Base

Genesis currently collaborates with prominent institutions like Citi, ING, London Clearing House, and XP Investments, demonstrating its established presence within the financial industry.

Company Origins and Growth

Founded in 2012 in Brazil by British co-founders Stephen Murphy (CEO) and James Harrison (CTO), both with backgrounds in investment banking, Genesis initially operated with limited external funding. The company primarily relied on bootstrapping and leveraging the founders’ existing network within the finance sector to expand its customer base.

Leadership and Location

Currently, Stephen Murphy leads the business from Miami, having relocated from New York at the onset of the COVID-19 pandemic. James Harrison, as CTO, oversees a team based in the U.K.

Strategic Use of Funding for Accelerated Growth

Despite its longevity, Genesis maintained financial stability prior to this Series B round. The new funding will be specifically allocated to accelerate growth beyond its organic trajectory. The company has not disclosed its valuation at this time.

Focus on Opportunity, Not Valuation

“We weren’t primarily concerned with valuation,” stated Murphy in an interview. “Our priority was the future potential and how additional funding could propel the company forward… this will enable us to rapidly scale up.” He also mentioned that the funding offers received contained “remarkable numbers and multiples,” reflecting the current market enthusiasm for low-code and no-code technologies.

The Convergence Driving No-Code/Low-Code Adoption

The increasing popularity of no-code and low-code technologies stems from the convergence of two key trends. Firstly, sophisticated services are being encapsulated with APIs and simplified interfaces, allowing for broader integration and implementation. This eliminates the need for complex development from scratch and expands access to underlying processes.

Democratization of Tech Knowledge

Secondly, technological proficiency has become increasingly widespread, with individuals across various professions routinely utilizing digital tools. This has fostered a demand for greater access to these technologies among non-technical professionals.

Empowering Citizen Developers

“We are witnessing the emergence of a ‘citizen developer’ segment, such as business analysts who understand the desired outcome but may lack the technical expertise to achieve it,” explained Murphy. “While we initially cater to experienced developers, this investment will allow us to introduce more low-code and no-code tools to empower a wider range of users.”

Finance as a Starting Point

Genesis initially focused on the finance sector due to the founders’ prior experience and the existing infrastructure of microservices – collections of services functioning as applications – which facilitated the development of low-code solutions. “We recognized the potential of creating a low-code entry point to microservices,” Murphy noted.

The Appeal to Financial Institutions

Investment banks, historically inclined to build custom solutions, were particularly receptive to Genesis’s offerings, as purchasing off-the-shelf software often entails vendor dependency.

Leveraging Financial Expertise for Broader Application

Unlike many no/low-code companies targeting specific verticals, Genesis intends to leverage its expertise in finance to address similar demands in other industries.

Expansion into Healthcare and Manufacturing

Murphy stated that Genesis will remain focused on financial markets in 2021 but has identified healthcare and manufacturing as promising verticals. The company is already receiving inbound inquiries from these sectors.

Similarities in Regulatory and Data Requirements

Healthcare, like finance, faces stringent data auditing and regulatory requirements. Manufacturing shares parallels with equity algorithmic trading in terms of complex event processing – how external events trigger transactions.

Market Growth Forecasts

Analysts predict continued growth in the low-code market. Gartner forecasts that low-code platforms will account for at least 65% of all application development activity by 2024.

Accel's Perspective on Genesis

“Low-code empowers business users to make independent technology decisions and even build their own applications without relying on IT,” said Andrei Brasoveanu, a partner at Accel. “Steve and the Genesis team are revolutionizing software development in financial services, challenging established vendors and delivering on the promise of low-code. Their success with large institutions demonstrates a genuine and urgent need for a specialized low-code solution for financial markets. We are thrilled to partner with Genesis and support their global expansion.” Brasoveanu will join the startup’s board as part of this funding round.