Accel Builds a No-Code Investment Thesis Driven by Growing Market Demand
Venture firm Accel discovers a pattern of no-code startup investments as businesses seek solutions to bridge the gap between non-technical needs and limited engineering resources. The firm's thesis evolves organically from early successes like Webflow to a broader global strategy.
Accel partner Arun Mathew explains how the venture firm naturally develops a no-code investment thesis as market awareness for these tools expands rapidly in 2020. The growing gap between what business units like marketing need and what engineering teams can provide creates significant market pain, driving demand for no-code and low-code solutions that empower non-developers to build without relying on engineering resources.
The firm's journey into this space starts with its investment in Webflow, which raises a $72 million Series A led by Accel. At the time of the deal, Webflow does not explicitly market itself as a no-code company, but instead focuses on providing a simple drag-and-drop interface for building websites and web applications. Mathew notes that this approach aligns perfectly with the rising no-code movement.
Following the Webflow deal, Accel expands its no-code portfolio by making additional investments in Europe and India through its early-stage and growth teams. Mathew admits that while some of these investments are driven by a deliberate thesis around the no-code theme, others happen opportunistically as the firm recognizes similar patterns across different markets and regions.