n8n Raises €55 Million to Expand AI-Driven Workflow Automation Platform
Berlin-based workflow automation startup n8n has raised €55 million in Series B funding at a valuation of approximately €250 million, reports TechCrunch. Highland Europe led the round, with HV Capital, Sequoia, Felicis, and Harpoon participating. The company has reached an important benchmark, seeing its revenue grow 5X after pivoting its business to AI-driven solutions in 2022.
Expansion and Customer Base
Since its introduction in 2019, n8n has developed a solid community base, with over 3,000 business customers and around 200,000 active users, both free and paid. A significant proportion of n8n's users are in the US, representing over half of the users. The startup will use the Series B funding to build its technology further and expand its market penetration, especially into new geographies like the US.
AI Integration Fuels Adoption
n8n's movement towards integrating AI, especially generative AI, has been a primary driver of growth in recent times. As a platform centered on automating processes and integrating different applications with less coding, n8n strategically integrated AI for ease of use.
With the application of AI, n8n helps users to develop natural language workflows without eliminating the need for high-level coding, and thereby heavily improving the level of automation. Users can automate processes like sending emails or gathering data with simple commands like "get information from X and send it to Y."
The AI integration was initially slow to gain traction, but after AI became a dominant theme in tech discussions, n8n reached a tipping point last year. The ease of use and practical applications of its AI tools quickly captured the attention of users and investors alike.
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Developer Community and Fair Code
n8n has also built a strong community around its platform, primarily targeting developers seeking low-code and no-code automation tools. TechCrunch covered that the business is founded upon "fair code," a progression of open-code software that permits creators to gain remuneration when their code is sold as a commercial enterprise. This company philosophy has benefited n8n in building strong credibility among developer communities, being over 70,000 times starred on GitHub.
Adding generative AI to its platform has placed n8n alongside other players in the industry, such as Tines, Workato, and UiPath, who have also adopted AI for use in their automation platforms. N8n's AI technologies aim to ease the automation process, making it easy for individuals to use without requiring technical know-how. According to Highland Europe general partner David Blyghton, the ease of use, simplicity in design, and scalability of n8n have been responsible for its success.
