n8n Raises $12M to Advance Fair Code Low-Code Automation

The Rise of Low-Code Automation: n8n Secures Series A Funding

As organizations increasingly prioritize operational efficiency, a leading provider of low-code tools for application integration is announcing a new funding round following substantial initial success.

n8n, headquartered in Berlin, delivers a framework enabling both technical and non-technical users to synchronize data and automate workflows. The company has successfully raised $12 million in a Series A funding round.

Expansion Plans and Platform Development

The startup intends to allocate these funds towards continued team expansion, currently at 16 members, and the enhancement of its platform and associated user services.

Currently, n8n facilitates connections and integrations between over 200 established applications, alongside custom apps and services utilized within specific organizations. Since its launch in October 2019, the platform has attracted a community of 16,000 members, encompassing developers and “citizen developers” – individuals with limited technical expertise who proactively seek solutions to improve workflows – as well as contributors and automation consultants.

The company now aims to simplify the service for a broader range of non-technical users.

“We are currently perceived as a product geared towards technical users, rather than citizen developers,” stated founder and CEO Jan Oberhauser. “Our objective is to streamline n8n’s usability, making it more accessible for wider adoption. We aspire to empower everyone with technical capabilities, be it the marketing or IT department.” This includes developing more sophisticated chatbots and innovative data visualization methods within platforms like Slack.

Investment Details and Key Participants

The funding round is spearheaded by Felicis Ventures, with participation from Sequoia Capital, firstminute Capital, and Harpoon Ventures. Sequoia and firstminute previously co-led n8n’s seed round approximately a year ago, alongside contributions from Eventbrite’s Kevin Hartz and Supercell’s Ilkka Paananen. Unidentified early employees from Google and Zendesk also contributed to this round, bringing the total funding raised to around $14 million, with the valuation remaining undisclosed.

The Growing Demand for Low-Code/No-Code Solutions

The market is witnessing a surge in low-code and no-code startups, a trend likely accelerated by the onset of the COVID-19 pandemic.

The pandemic spurred increased remote work and reliance on cloud-based services. Simultaneously, it prompted organizations to re-evaluate their operational processes and identify areas for improvement. Furthermore, economic pressures have necessitated increased efficiency, driving a demand for software solutions that maximize output with limited resources.

This has placed greater demands on IT departments, while also encouraging individuals within various departments to proactively enhance their own workflows.

Competitive Landscape

Other prominent players in this space include Bryter ($66 million Series B), Genesis ($45 million), Zapier, Airtable, Rows, Gyana, Ushur, Creatio, EasySend, and CapivateIQ. These companies offer diverse solutions, ranging from generic tool integrations to specialized applications for specific use cases.

n8n’s Unique Approach: “Fair Code”

n8n distinguishes itself as a “pioneer” not only through its focus on low-code tools but also through its philosophical approach to software development.

The company champions the concept of “fair code,” which shares similarities with open-source principles and a freemium model. The code is publicly accessible, ensuring its long-term availability – a critical concern for enterprises adopting cutting-edge technologies.

n8n offers a flexible model: self-hosting the code grants unrestricted usage, akin to open-source. Utilizing n8n’s cloud service (SaaS) requires a subscription fee. Embedding the code within a product necessitates a revenue-sharing agreement. Support services also contribute to revenue streams.

Oberhauser is a strong advocate for fair code, maintaining a dedicated website to promote the concept and its origins.

Challenges and Future Considerations

While maintaining free access to basic code functionality and simplifying integration for non-developers, certain challenges remain. Setting up integration connectors, particularly with proprietary or customized software, requires attention.

Security is another growing concern as low-code/no-code tools gain popularity. Decentralized integration efforts may introduce new data vulnerabilities, necessitating robust security measures. Consequently, n8n anticipates continued demand for integration and consulting services.

“The majority of companies require assistance in connecting internal and external systems, and facilitating a smooth onboarding process,” Oberhauser explained.

Investor Perspective

Aydin Senkut, founder and managing partner of Felicis Ventures, highlighted n8n’s platform extensibility – its applicability beyond app integration and workflow automation – and its impressive early traction of 16,000 users with minimal marketing. This indicates strong product value and user retention.

Senkut emphasized the importance of developer empowerment, regardless of their technical background. “We believe data is the new oil, and n8n’s ability to seamlessly connect numerous applications is particularly valuable. It’s reminiscent of Felicis’ early investment in Plaid. The more data and APIs a company can access, the greater its potential. The key lies in connecting disparate systems.”

Updated with more detail on pricing, and to note that n8n has 16 employees, not 60.