You’ve likely seen the term “no-code” lately. Meant to tap into the demand for object-oriented workflows (a.k.a. WYSIWYG), it lets non-technical folks build apps and workflows without writing code. Among other things, this democratized approach makes the no-code trend primed for a down-market SMB play.
Before diving into drivers and dynamics for SMBs, the latest news that reinforces the broader no-code trend is Airtable’s sizable Series E announced yesterday. Specifically, it raised $270 million from Greenoaks Capital, WndrCo, Caffeinated Capital, CRV, and Thrive, bringing its post-money valuation to $5.77 billion.
Training Wheels
Airtable, for those unfamiliar, is a relational database on training wheels. The easiest analogy is a Power-Point chart that’s linked to data in Excel… which we’ve all done. The spreadsheet/database defines values while the primary app — in this case PowerPoint — renders that data in a deliberate way for consumption.
Airtable works on that basic database principle but democratizes it. By offering the familiar UX of a spreadsheet, users can essentially make their own front-end apps. That can be anything from a sales chart to a contact list or any dynamic data set that people or companies want to organize and customize.
The customization part is a key value driver for Airtable. The platform is known for its open-endedness, and therefore broad applicability (read: TAM). With the framework of being able to create your own simple apps from a spreadsheet, the actual use cases are plentiful and are a function of the user’s goals and imagination.
Back to the broader no-code trend, Airtable has become a defining player in its movement. It accomplishes all of the above by eschewing the need for programming knowledge. This principle isn’t new, considering the Excel/PowerPoint example above, but the difference here is the ability to essentially create apps.
Timing is Everything
Another factor driving this trend is (no: surprise) Covid. Besides a Covid-driven inflection in enterprise software and productivity tools, remote work has forced lots of low-friction collaboration tools like Airtable. The ability to easily create productivity apps and share with a team is elevated when colleagues are far-flung.
Beyond knowledge workers, no-code software could also be primed for SMBs of various stripes, as noted. Their software adoption has inflected over the past year as we examine in our weekly Benchmark Bytes series. And no-code especially speaks to the SMB software mantra to keep things simple and approachable.
This down-market assimilation could take a while, as often happens with emerging tech that eventually reaches SMBs’ hands. But the trend should nonetheless be well-planted on the radar screens of SMB SaaS players if it isn’t already. And no-code will apply to several horizontal/ functional areas of software.
Meanwhile, Airtable plans to use its new funding to accelerate the development of its enterprise package for larger clients. It also plans to grow its team. We’ll keep watching closely for where Airtable goes next, and where the broader no-code trend takes us — up-market, down-market, or otherwise.
