Framer, a leading Dutch web design automation company, has recently raised $100 million in funding, bringing its valuation to an impressive $2 billion. This significant investment reflects growing investor confidence in no-code tools that simplify web development, particularly in a competitive landscape marked by giants like Figma.
With its latest funding round led by Meritech Capital Partners and Atomico, Framer is poised to expand its capabilities and tackle market rivals. Earlier this year, Figma soared to a $37.68 billion market cap after going public, showcasing the strong demand for community-driven design platforms.
What Makes No-Code Tools So Valuable?
No-code solutions empower users to create websites and applications without requiring extensive technical skills. As the sector gains traction, Framer’s surge in valuation exemplifies the excitement around platforms leveraging generative AI to streamline web development. Investors are particularly interested as they seek tools that democratize programming, making design accessible to a broader audience.
The User Base: Startups and Beyond
Framer boasts an active monthly user base of 500,000, predominantly comprised of startups. The company aims to broaden its scope by appealing to larger enterprises. Previous funding in 2023, amounting to $27 million, did not disclose a valuation at that time, but the user growth hints at a successful trajectory.
In its statement, Framer highlighted that nearly half of the recent Y Combinator batch launched with its platform, alongside well-known brands like Perplexity and Scale AI. As Framer continues to grow, it anticipates hundreds of thousands of additional sites will run on its platform.
Are Growth-Stage Startups Making a Comeback?
The venture capital landscape sees renewed optimism for AI-based tools like Framer, particularly following the remarkable IPO of Figma. Its share price surged by over 250% on debut, setting a high standard for the sector. This resurgence in IPO activity has generated considerable interest, particularly after a three-year lull that left tech investors eager for new opportunities.
According to data from PitchBook, venture capitalists invested approximately €150 billion in the first half of 2025, with late-stage startups capturing about 30% of that funding. This trend reveals a strong preference for established companies gearing up for IPOs and acquisitions.
Understanding Framer’s Origins
Founded in 2014 in Amsterdam by Koen Bok and Jorn van Dijk, who previously sold their venture Sofa to Facebook, Framer began its journey focused on prototyping tools. Over the years, it has evolved into a comprehensive platform for web publishing and no-code development, making a significant mark in the tech landscape.
The recent funding highlights a broader trend, showcasing investor interest in no-code and “vibe coding” offerings that utilize generative AI from providers like OpenAI. Framer positions itself as a more accessible alternative to competitors like Figma and Squarespace, providing an all-in-one solution for web design.
Who Are Framer’s Main Competitors?
Competitors such as Anysphere, which develops the AI coding assistant Cursor, have also risen to prominence, achieving valuations upwards of €9 billion, even with moderate revenue. In contrast, Framer generated approximately €46 million in annual recurring revenue this year, with plans to double that in 2026 due to the increasing demand for AI-enhanced design tools.
What are the main advantages of using no-code platforms like Framer? These platforms greatly reduce the time and technical barriers typically associated with web development, allowing designers to focus on creativity instead of coding.
How has investor sentiment shifted toward startups in the tech space? There’s a growing enthusiasm for AI-driven tools that facilitate rapid development and design, as evidenced by recent funding activity and successful IPOs.
What sets Framer apart from its competitors? Framer’s focus on user-friendly design tools combined with robust community support allows it to stand out in a crowded market.
Why are investors flocking to companies like Framer? The increasing popularity of no-code and AI solutions in web development presents significant upside potential, making it an attractive investment opportunity.
In conclusion, Framer’s recent funding round is a clear indicator of the burgeoning demand for intuitive web design solutions. As the industry continues to evolve, the potential for growth in no-code applications remains immense. If you’re interested in staying on top of tech trends and learning more about innovative platforms like Framer, be sure to explore related content at Moyens I/O.