This article first appeared on GuruFocus.
Framer has secured a fresh $100 million funding round at a $2 billion valuation, led by Meritech Capital Partners and Atomico, with Accel also participating. Founded in 2014 by Koen Bok and Jorn van Dijk, the Amsterdam-based startup began with prototyping tools but has since evolved into a no-code platform for web publishing and AI-driven design automation. CEO Bok positioned Framer as a simpler alternative to Figma (NYSE:FIG) and Squarespace, aiming to give designers the ability to publish high-quality websites without relying on costly developer resources.
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Investor appetite for no-code and AI-powered design tools has accelerated following Figma's blockbuster IPO in July, where the company raised $1.2 billion and saw its shares surge 250% on debut. Bok disclosed that Framer has surpassed $50 million in annual recurring revenue this year and expects that figure to double by 2026. The platform now serves 500,000 monthly active users, most of whom are software startups, but management is shifting focus toward winning larger enterprise clients to fuel the next stage of growth.
Despite operating at a smaller scale than Figma, which generated $228 million in first-quarter sales, Framer is benefiting from a broader wave of capital flowing into AI-enabled development. Anysphere Inc., maker of the AI coding assistant Cursor, recently reached a $9.9 billion valuation on $500 million in annualized revenue, underscoring how quickly valuations are climbing in this space. With fresh capital secured, Framer could accelerate its push into enterprise markets and strengthen its position in the rapidly evolving AI-driven web design ecosystem.
