In recent years, low-code development platforms have witnessed a surge in popularity due to their promise of expediting the traditionally prolonged app development cycle. According to data from analytics firm GlobalData, there was a remarkable fivefold increase in venture capital funding allocated to low-code development platforms between 2021 and 2022.
While the demand for low-code platforms has slightly subsided, the spotlight has shifted towards artificial intelligence, particularly generative AI. Nonetheless, the resilience of low-code is evident in the recent funding round of FlutterFlow, a startup specializing in low-code development.
FlutterFlow, dedicated to constructing a low-code platform for mobile app developers, has declared the successful closure of a $25.5 million Series A funding round. Leading the investment are prominent entities such as GV (formerly Google Ventures), Gradient Ventures (Google’s AI-focused venture fund), Xoogler Ventures, and Y Combinator. According to a source familiar with the matter, the valuation of FlutterFlow now stands at approximately $170 million. This Series A funding brings FlutterFlow’s total funds raised to $30 million, intended for expanding enterprise initiatives and a substantial increase in investments in artificial intelligence, as stated by CEO and co-founder Abel Mengistu.
In an email interview with TechCrunch, Mengistu articulated FlutterFlow’s mission, emphasizing the critical issue of delivering high-quality digital experiences, even for large and successful companies with substantial revenues. Mengistu stated, “That’s ultimately the problem FlutterFlow aims to solve.”
Founded by Abel Mengistu and Alex Greaves in 2020, FlutterFlow is their second venture after the demise of their initial startup during the pandemic—a restaurant recommendation app.
FlutterFlow distinguishes itself in the competitive low-code app development platform market through its commitment to an “open” development approach, allowing customers to deploy apps without dependencies on its platform. Additionally, it boasts a fully centralized governance pipeline. The company has also embraced the trend of generative AI, recently launching an AI-powered code assistant capable of generating code based on a description of desired functionality.
Mengistu contends that FlutterFlow’s success lies in its open development approach and avoidance of vendor lock-in, focusing on providing lasting value for customers. Despite the competitive landscape, FlutterFlow claims around 10,000 self-service paying customers, approximately 1 million users, and a select number of enterprise customers. The company indicates that it is currently experiencing minimal burn, with several years of financial runway even with increased spending.
Mengistu concluded, “FlutterFlow is a tool that allows customers to accelerate timelines and increase productivity. Therefore, headwinds can present an opportunity for us as decision-makers are looking for ways to execute on ambitious product roadmaps amidst increasing financial constraints.”
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