On his fourth attempt at building the company of his dreams, Webflow CEO Vlad Magdalin made it a point to give every employee a handwritten note ahead of his software company’s annual all-hands retreat. In July, after writing 120 of them, the entrepreneur said it might be time to end the tradition. “My hand is cramping,” Magdalin says. “I may need to find a new plan.”
After years of struggle, Webflow is breaking out. In 2012, Magdalin, his brother Sergie and a friend, Bryant Chou, founded Webflow with the promise of providing a better website builder, one that allowed anyone to spin up a professional-caliber website without knowing how to code. Seven years later, Webflow is at the forefront of a wave of specialist startups looking to change how companies build. And with an unusual new $72 million Series A funding round, Magdalin and Webflow now have the war chest to build a big business around their “no code” development approach.
At $72 million in funding for a company that had raised only $2.9 million previously, the round, led by venture capital firm Accel, stretches the meaning of “Series A” and reflects Webflow’s years of building off of its own balance sheet while investors shunned it. Webflow seed investor Silversmith Capital contributed “significantly,” Magdalin says, along with previous investors Rainfall Capital, Draper Associates and FundersClub. The large Series A is in part explained by the relative maturity of Webflow’s business, which has been profitable for two years and counts 47,000 business customers. Webflow’s annualized revenue is more than $20 million, a source with knowledge of the company’s financials says; the company is valued between $350 million and $400 million after the investment, according to the source.