Low-code development platforms have been gaining significant traction in recent years, offering the promise of streamlining the typically lengthy app development process. According to data from analytics firm GlobalData, there has been a substantial fivefold increase in venture capital funding into low-code development platforms from 2021 to 2022.
Key Takeaway
FlutterFlow, a low-code platform for mobile app developers, has secured $25.5 million in Series A funding to enhance its enterprise capabilities and bolster investments in AI.
FlutterFlow’s Funding Round
Amidst a shift in focus towards AI, particularly generative AI, the demand for low-code development platforms remains strong. FlutterFlow, a startup specializing in low-code platforms for mobile app developers, has recently announced the successful closure of a $25.5 million Series A funding round. The round was led by GV (formerly Google Ventures), Gradient Ventures (Google’s AI-focused venture fund), Xoogler Ventures, and Y Combinator, among others, valuing the company at approximately $170 million. This funding brings FlutterFlow’s total raised capital to $30 million, which will be utilized to scale its enterprise efforts and make substantial investments in AI, as stated by CEO and co-founder Abel Mengistu.
Addressing the Industry Needs
Abel Mengistu emphasized the significance of delivering high-quality digital experiences, particularly with the substantial increase in online users primarily through mobile devices over the last decade. He highlighted the challenge faced by even large, successful companies in consistently delivering exceptional digital experiences, which FlutterFlow aims to address.
Background and Vision
Co-founded by Abel Mengistu and Alex Greaves in 2020, FlutterFlow is the duo’s second startup venture. Their previous attempt, a restaurant recommendation app, was halted due to the pandemic. Reflecting on their experiences, Mengistu and Greaves recognized the need to simplify app development, leading them to create FlutterFlow, which provides low-code tools for building apps across various platforms, including iOS, Android, and desktop operating systems.
Competitive Edge
FlutterFlow faces competition in the low-code app development platform market, with companies like Appsmith and Builder.ai. However, Mengistu emphasized FlutterFlow’s differentiation through its open development approach, enabling customers to deploy apps without dependencies on its platform, and a fully centralized governance pipeline. Additionally, FlutterFlow has embraced GenAI, introducing an AI-powered code assistant for generating code based on desired functionality descriptions.
Market Position and Growth
FlutterFlow claims to have approximately 10,000 self-service paying customers, serving around 1 million users, and a select number of enterprise customers. The company’s strategy has resulted in minimal burn rate, providing them with several years of runway even with accelerated spending. Mengistu highlighted FlutterFlow’s ability to accelerate timelines and increase productivity, positioning the company to capitalize on the growing demand for efficient app development solutions amidst financial constraints.
