Figma’s competitor has raised $100M in investment with a valuation of $2B

Figma’s competitor has raised $100M in investment with a valuation of $2B

Framer, a Dutch company that develops tools for web design automation, has raised $100 million in investment with a business valuation of $2 billion, Bloomberg reports.

Investment details 

The round was led by existing investors Meritech Capital Partners and Atomico. Venture capital firm Accel also participated in the financing.

How the startup developed

Framer was founded in 2014 by designers who had previously sold their company Sofa to Facebook. Initially, the startup offered tools for prototyping websites, later adding services for web publishing and no-code development.

Today, the company is positioning itself as a simpler alternative to Figma and Squarespace, offering design, animation, marketing analytics, and website publishing on one platform.

Financial performance

According to the company’s representative, Framer has exceeded $50 million in annual recurring revenue this year and plans to double this figure in 2026. For comparison, Figma earned $228 million in the first quarter.

The startup reported that it has about 500,000 active users per month. Most of its customers are other tech companies, but Framer is looking to attract large corporations as well.

Context

Investor demand for companies with no-code and AI solutions is growing after the successful IPO of Figma. In July, Anysphere Inc., the developer of the AI assistant Cursor, reported more than $500 million in annual revenues and received a valuation of $9.9 billion.

The last time Framer attracted investments was in 2023, when it was $27 million without disclosing the company’s valuation.

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