This morning, Webflow, a company providing software for building websites without coding, announced the completion of a $140 million Series B funding round. The investment was spearheaded by existing investors Accel and Silversmith, following a $72 million Series A raise in August 2019.

According to a blog post reviewed by TechCrunch prior to publication, this new financing establishes Webflow’s valuation at over $2.1 billion. CapitalG, the venture capital arm of Alphabet, also participated in the Series B, and investor Laela Sturdy will be joining Webflow’s board of directors.

Webflow’s software empowers users to create websites without writing any code, and the company also provides hosting and content management features.

Webflow’s offering aligns with a growing trend of companies that believe software development for the internet should become increasingly simplified. TechCrunch previously examined the no-code and low-code landscape in 2020, gathering insights from investors optimistic about its future.

Webflow CEO Vlad Magdalin characterized the funding round as “opportunistic,” explaining to TechCrunch that the company was financially stable when the deal was finalized. He further stated that Webflow concluded 2020 with positive cash flow.

Magdalin explained that the additional funds are intended as “courage capital,” enabling investments in the business that may not yield immediate revenue returns. Potential areas for investment include its enterprise-level products, customer support, the platform itself, and talent acquisition.

In an email, Arun Mathew, an investor at Accel and a member of Webflow’s board, affirmed the CEO’s statements, noting that the company experienced a doubling of its customer base in 2020.

Webflow’s achievement of profitability is particularly noteworthy considering the company was bootstrapped for over five years before seeking external funding; this is a pattern the company has followed previously.

Securing capital offers benefits beyond increased spending capacity. A higher valuation and increased visibility can strengthen recruitment efforts and reassure customers about the company’s long-term viability, alleviating concerns about potential financial difficulties or acquisition.

Businesses are hesitant to rely on products that might be discontinued. With its Series B completed and a valuation of $2.1 billion, Webflow has likely addressed these concerns for the foreseeable future.

Magdalin shared with TechCrunch that the company’s business also doubled in 2020, representing an acceleration of its prior performance.

While the company’s current revenue remains within the eight- or nine-figure range is uncertain, a growth rate of approximately 100% is encouraging for Webflow’s potential for an initial public offering (IPO).

Webflow anticipates continued growth in 2021. The CEO indicated to TechCrunch that the company’s focus on larger clients is beginning to produce positive results. He noted that average contract values with enterprise customers are significantly higher than those with small and medium-sized businesses (SMBs), although enterprise clients currently represent only around 5% of Webflow’s total business.

However, Magdalin stated that the company only began actively targeting enterprise customers last year and expects to increase business from this segment by a factor of 10 in the current year.

The company also has ambitious plans for product development, aiming to enhance its service to support the creation of more sophisticated and powerful websites. The CEO believes that websites are just one component of the broader software landscape and anticipates no-code tools will increasingly handle more complex software tasks.

This expansion could broaden the overall no-code market, potentially fostering opportunities for startups to develop services that reduce the reliance of non-developers on engineering teams.

Mathew echoed Magdalin’s optimistic outlook on the no-code market, stating in an email that the market is “moving very quickly to being bullish on no-code tooling,” and that we are “still very early in the adoption curve.”

Given this perspective, it is understandable why Accel would choose to increase its investment in Webflow. Accel has a track record of making substantial investments in companies that initially bootstrapped to scale, including both Webflow and Qualtrics. In the case of Qualtrics, Accel led its Series A, B, and C funding rounds, totaling $400 million.

Therefore, Accel’s continued leadership in Webflow’s funding rounds is consistent with the firm’s established investment strategy.

CapitalG’s Sturdy, Webflow’s newest board member, shared with TechCrunch in an email that her firm has been “bullish on the massive potential of no code for years,” prompting them to seek out “the most promising companies utilizing no code to transform sectors and democratize access to key tools.” It will be interesting to observe the company’s progress with this new investment and additional resources.