How Klaviyo used data and no-code to transform owned marketing

Email is the communication medium that refuses to die.

“Eventually, every technology is trumped by something new and better. And I feel that email is ready to be trumped. But by what?” wrote the venture capitalist Fred Wilson in 2007. Three years later, he updated readers that other forms of messaging had outgrown email. “It looks like email’s reign as the king of communication is ending and social networking is now supreme,” he said. (To be fair to Wilson, his view was nuanced enough to continue investing in email tech.)

Despite the competition, Klaviyo didn’t just break into the market — it has also achieved an unusual level of excitement and loyalty among marketers despite its youthful history.

Investors weren’t alone — marketers have also spent years anticipating the next big thing.

“It was SMS, it was YouTube, it was Instagram. Before that it was Facebook, then it was Snapchat and TikTok. I kinda feel like individually all those things are fleeting. I think people found: You know what? Everyone still opens their emails every day,” says Darin Hager, a former sneaker entrepreneur who is now an email marketing manager at Adjust Media.

Email has an estimated four billion users today and continues to grow steadily even as mature social networks plateau. Estimates of the number of nonspam messages sent each day range from 25 billion to over 300 billion.

Unsurprisingly for a marketing channel with so much volume, there’s voluminous competition to send and program those emails. Yet, despite the competition, Klaviyo didn’t just break into the market — it has also achieved an unusual level of excitement and loyalty among marketers despite its youthful history.

“If you’re not using Klaviyo and you’re in e-commerce, then it’s not very professional. If you see ‘Sent by Constant Contact or Mailchimp’ at the bottom of an email by a brand, it makes it look like they’re not really there yet,” Hager said.

How did Klaviyo become the standard solution among email marketers?

In Klaviyo’s origin story, we delved into part of the answer: The company began life as an e-commerce analytics service. Once it matured to compete as an email service provider, Klaviyo benefited from the edge given by its deeper, more comprehensive focus on data.

However, that leaves several questions unanswered. Why is email so important to e-commerce? What are the substantive differences between Klaviyo’s feature set and those of its competitors? And why did several large, well-funded incumbents fail to capitalize on building an advantage in data first?

In this section, we’ll answer those questions — as well as laying out the significance of COVID-19 on the e-commerce market, and how newsletters and AI figure into the company’s future.

A positive Outlook on email’s longevity

Email is one of the oldest tech verticals: Constant Contact, one of the most venerable email service providers (ESPs), was founded in 1995, went public in 2007 and was taken private in 2015 for $1 billion. By the time Klaviyo started in 2012, the space was well served by numerous incumbents.


By Danny Crichton

Berlin’s Bryter raises $66M to take its no-code tools for enterprises to the US

No-code startups continue to see a lot of traction among enterprises, where employees — strictly speaking, non-technical, but still using software every day — are getting hands-on and building apps to take on some of the more repetitive aspects of their jobs, the so-called “citizen coders” of the working world.

And in one of the latest developments, a Bryter — an AI-based no-code startup that has built a platforms used by some 100 global enterprises to date across some 2,000 business applications and workflows — is announcing a new round of funding to double down on that opportunity. The Berlin-based company has closed a Series B of $66 million, money that it will be investing into its platform and expanding in the U.S. out of a New York office it opened last year. The funding comes on the heels of seeing a lot of demand for its tools, CEO and co-founder Michael Grupp said in an interview.

“It was a great year for low-code and no-code platforms,” said Grupp, who co-founded the company with Micha-Manuel Bues and Michael Hübl. “What everyone has realized is that most people don’t actually care about the tech. They only care about the use cases. They want to get things done.” Customers using the service include the likes of McDonald’s, Telefónica, and PwC, KPMG and Deloitte in Europe, as well as banks, healthcare and industrial enterprises.

Tiger Global is leading this round, with previous backers Accel, Dawn Capital, Notion Capital and Cavalry Ventures all also participating, along with a number of individual backers (they include Amit Agharwal, CPO of DataDog; Lars Björk, former CEO of Qlik; Ulf Zetterberg, founder and CEO of Seal Software; and former ServiceNow global SVP James Fitzgerald). The valuation is not being disclosed; Bryter has raised around $90 million to date.

Accel and Dawn co-led Bryter’s Series A of $16 million less than a year ago, in June 2020, a rapid funding pace that underscores both interest in the no-code/low-code space — Bryter’s enterprise customer base has doubled from 50 since then — and the fact that startups in it are striking while the iron is hot.

Bryter’s not the only one: Airtable, Genesis, Rows, Creatio, and Ushur are among the many startups building ‘hands-on tech creation for non-techie people’ that have raised money in the last several months.

Automation has been the bigger trend that has propelled a lot of this activity. Knowledge workers today spend most of their time these days in apps — a state of affairs that pre-dates the Covid-19 pandemic, but has definitely been furthered throughout it. While some of that work still requires manual involvement and evaluation from those workers, software has automated large swathes of those jobs.

RPA — robotic process automation, where companies like UiPath, Automation Anywhere and Blue Prism have taken a big lead — has accounted for a significant chunk of that activity, especially when it comes to reading forms and lots of data entry. But there remains a lot of other transactions and activities within specific apps where RPA is typically not used (not yet at least!). And this is where non-tech workers are finding that no-code tools like Bryter, which use artificial intelligence to deliver more personalised, yet scalable, automation, can play a very useful role.

“We sit on top of RPA in many cases,” said Grupp.

The company says that business functions where its platform has been implemented include compliance, legal, tax, privacy and security, procurement, administration, and HR, and the kinds of features that are being built include virtual assistants, chatbots, interactive self-service tools, and more.

These don’t replace people as such but cut down the time they need to spend in specific tasks to process and handle information within them, and could in theory also be used to build tools for customers to interact with services more easily, cutting down on the amount of time that agents are getting details and handling engagements.

That scalability, and the rapid customer up-take from a pool of users that extends beyond tech early-adopters, are part of what attracted the funding.

“Bryter has all the characteristics of a top-tier software company: high quality product that solves a real customer pain point, a large market opportunity and a world-class founding team,” said John Curtius, a partner at Tiger Global, in a statement. “The feedback from Bryter’s customers was resoundingly positive in our research, and we are excited to see the company reach new heights over the coming years.”

“Bryter has seen explosive growth over the last year, signing landmark customers across a large number of sectors and use cases. This does not come as a surprise. In the pandemic-affected world, digitalisation is no longer a nice to have, it is an imperative,” added Evgenia Plotnikova, a partner at Dawn Capital.


By Ingrid Lunden

No code, workflow, and RPA line up for their automation moment

We’ve seen a lot of trend lines moving throughout 2020 and into 2021 around automation, workflow, robotic process automation (RPA) and the movement to low-code and no-code application building. While all of these technologies can work on their own, they are deeply connected and we are starting to see some movement towards bringing them together.

While the definition of process automation is open to interpretation, and could include things like industrial automation, Statista estimates that the process automation market could be worth $74 billion in 2021. Those are numbers that are going to get the attention of both investors and enterprise software executives.

Just this week, Berlin-based Camunda announced a $98 million Series B to help act as a layer to orchestrate the flow of data between RPA bots, microservices and human employees. Meanwhile UIPath, the pure-play RPA startup that’s going to IPO any minute now, acquired Cloud Elements, giving it a way to move beyond RPA into API automation.

Not enough proof for you? How about ServiceNow announcing this week that it is buying Indian startup Intellibot to give it — you guessed it — RPA capabilities. That acquisition is part of a broader strategy by the company to move into full-scale workflow and automation, which it discussed just a couple of weeks ago.

Meanwhile at the end of last year, SAP bought a different Berlin process automation startup, Signavio, for $1.2 billion after announcing new automated workflow tools and an RPA tool at the beginning of December. Microsoft is in on it too, having acquired process automation startup Softmotive last May, which it then combined with its own automation tool PowerAutomate.

What we have here is a frothy mix of startups and large companies racing to provide a comprehensive spectrum of workflow automation tools to empower companies to spin up workflows quickly and move work involving both human and machine labor through an organization.

The result is hot startups getting prodigious funding, while other startups are exiting via acquisition to these larger companies looking to buy instead of build to gain a quick foothold in this market.

Cathy Tornbohm, Distinguished Research Vice President at Gartner, says part of the reason for the rapidly growing interest is that these companies have stayed on the sidelines up until now, but they see an opportunity and are using their checkbooks to play catch up.

“IBM, SAP, Pega, Appian, Microsoft, ServiceNow all bought into the RPA market because for years they didn’t focus on how data got into their systems when operating between organizations or without a human. [Instead] they focused more on what happens inside the client’s organization. The drive to be digitally more efficient necessitates optimizing data ingestion and data flows,” Tornbohm told me.

For all the bluster from the big vendors, they do not control the pure-play RPA market. In fact, Gartner found that the top three players in this space are UIPath, Automation Anywhere and Blue Prism.

But Tornbohm says that, even as the traditional enterprise vendors try to push their way into the space, these pure-play companies are not sitting still. They are expanding beyond their RPA roots into the broader automation space, which could explain why UIPath came up from its pre-IPO quiet period to make the Cloud Elements announcement this week.

Dharmesh Thakker, managing partner at Battery Ventures, agrees with Tornbohm, saying that the shift to the cloud, accelerated by COVID-19, has led to an expansion of what RPA vendors are doing.

“RPA has traditionally focused on automation-UI flow and user steps, but we believe a full automation suite requires that ability to automate processes across the stack. For larger companies, we see their interest in the category as a way to take action on data within their systems. And for standalone RPA vendors, we see this as validation of the category and an invitation to expand their offerings to other pillars of automation,” Thakker said.

The activity we have seen across the automation and workflow space over the last year could be just the beginning of what Thakker and Tornbohm are describing, as companies of all sizes fight to become the automation stack of choice in the coming years.


By Ron Miller

Genesis raises $45M to expand its fintech-focussed low-code platform to more verticals

Low-code and no-code tools have been a huge hit with enterprises keen to give their operations more of a tech boost, but often lack the resources to handle more complex integrations. Today, one of the startups that has been building low-code finance tools is announcing funding to tap into that trend and expand its business.

Genesis — which has to date primarily worked with financial services companies, giving non-technical employees the tools to create ways to monitor and manage real-time risk, high-frequency trades and other activities — has picked up $45 million. It plans to use to bring the tools it has already built to a wider set of verticals that have some of the same needs to manage risk, compliance, and other factors as finance — healthcare and manufacturing are two examples — as well as to continue building more into the stack. 

This Series B includes a mix of financial investors along with strategic backers that speak to who already integrates with Genesis’ tools on their own platforms.

Led by Accel, it also includes participation from new backers GV (formerly Google Ventures) and Salesforce Ventures, in addition to existing investors Citi, Illuminate Financial and Tribeca Venture Partners, who also invested in this round. To give you an idea of who it works with, Citi, along with ING, London Clearing House, and XP Investments, are some of Genesis customers.

Originally conceived in 2012 in Brazil by a pair of British co-founders — Stephen Murphy (CEO) and James Harrison (CTO), who cut their teeth in the world of investment banking — Genesis had raised less than $5 million before this round, mostly bootstrapping its business and leaning on Murphy and Harrison’s existing relationships in the world of finance to grow its customer base.

Today, Murphy lives in and leads the business from Miami — where he moved from New York just as the Covid-19 pandemic was starting to gain steam last year — while James Harrison (CTO) leads part of the team based out of the UK.

As you might imagine with so little funding before now for a company going on nine years old, Genesis was doing fine financially before this Series B, so the plan is to use the funding specifically to grow faster than it could have on its own steam. The startup is not disclosing its valuation with this round.

“We were not really fixated on valuation,” said Murphy in an interview, who said the funding came about after a number of VCs had approached the startup. “The most important thing is the future opportunity and where we could take the company with additional funding… this will help us hyper scale up.” He did note that the term sheets contained “some amazing numbers and multiples,” given the current interest in no-code and low-code technology.

Indeed, the vogue for no-code and low-code tech — other well-funded names in the crowded space include startups like Zapier, Airtable, Rows, Gyana, Bryter, Ushur, Creatio, and EasySend, as well as significant launches from Google and Microsoft and other bigger players — is coming out of two trends colliding.

On one side, we’ve well and truly entered an era in enterprise technology — with the same trend playing out in consumer tech, too — where smart developers are taking sophisticated and complex services and putting “wrappers” around them by way of APIs and simpler (low- or no-code) interfaces, so that those sophisticated tools can in turn be integrated and implemented in more places. This saves needing to build or integrate that complexity from scratch and expands access to the processes within those wrappers.

On the other side, the thirst for tech knowledge has become well and truly mainstream and as a result getting far more democratized. Working in a variety of applications, using different digital tools and devices, and seeing the fruits of tech pay off are all second nature to today’s working world — whether or not you are a technologist. So it’s no surprise to see more proactive, non-technical people looking for more ways to get their hands on these tools themselves.

“You now have a whole citizen developer world, for example business analysts who understand the solution you want but might not know how to get there,” Murphy said. “We play to seasoned developers first but the investment will help us put more low code and no code tools into place to widen the tools out to them.”

Starting out in finance made sense not just because that was where the two founders had previously worked, but also because of the history of how different software tools were already being used. Specifically, he noted that the ubiquity of microservices — which themselves are collections of services as apps — laid the groundwork for more low-code. “We saw that if we could build a low-code entry point to microservices, that would be powerful.”

On top of that, investment banks, he said, have a history of wanting to build things themselves to tailor to their specific needs. “Buying off the shelf means you are at the mercy of the vendor,” he said. These factors made financial services companies very receptive to what Genesis was offering.

While a lot of the no/low-code players are coming at the concept with specific verticals in mind — no surprise, since different verticals have very specific use cases and needs — so what’s interesting with Genesis is how the company is leveraging what it already knows about finance, and then looking at other industries that have similar demands, structures and rules.

Murphy said that Genesis will stay “very focused on financial markets for 2021” but that it’s identified a number of other verticals similar to it, and is actually already seeing some inbound interest from them.

“A number of people have already approached us from the world of healthcare,” he said, pointing out that these organizations, like financial services, face challenges around how to audit data and regulations around performing transactions. Manufacturing, meanwhile, has some parallels around the area of complex event processing similar to equity algorithmic trading, he said. (In short, this relates to how external events might trigger more transactions, not unlike how external factors affect manufacturing operations.)

The trend is one that analysts forecast will only grow in the coming years: Gartner, for example, says that by 2024, low-code platforms will account for no less than 65% of all app development activity.

“Low-code promises business users the autonomy to make their own technology usage and purchase decisions while enabling them to actually build their own applications without having to rely on IT,” said Andrei Brasoveanu, a partner at Accel, said n a statement. “By bringing one of the most transformative innovations in software development to financial services, Steve and the Genesis team are taking on a huge market of legacy vendors – and winning too – while delivering on the promise of low-code. The confidence they’ve gained from serving such large institutions is proof that there’s a real and urgent need for a purpose-built low-code solution for financial markets. We’re excited to partner with Genesis and support them in delivering this across the world.” Brasoveanu is joining the startup’s board with this round.


By Ingrid Lunden

Rows, formerly dashdash, raises $16M to build and populate web apps using only spreadsheet skills

Spreadsheet software — led by products like Microsoft’s Excel, Google’s Sheets and Apple’s Numbers — continues to be one of the most-used categories of business apps, with Excel alone clocking up more than a billion users just on its Android version. Now, a startup called Rows that’s built on that ubiquity, with a low-code platform that lets people populate and analyze web apps using just spreadsheet interfaces, is announcing funding and launching a freemium open beta of its expanded service.

The Berlin-based startup — which rebranded from dashdash at the end of last year — closed a Series B round of $16 million, money that it is using to continue investing in its platform as well as in sales and marketing.

The round was led by Lakestar, with past investors Accel (which led its $8 million Series A in 2018) and Cherry Ventures also participating. Christian Reber has also invested in this round. Reber knows a thing or two about software disrupting legacy products — he is the co-founder and CEO of presentation software startup Pitch and the former CEO and founder of Microsoft-acquired Wunderlist — and notably he is joining Rows’ Advisory Board along with the investment.

A little detail about this Series B: CEO Humberto Ayres Pereira tells us that the round actually was quietly closed over a year ago, in January 2020 — just ahead of the world shutting down amid the Covid-19 pandemic. The startup chose to announce that round today to coincide with adding more features to its product and moving it into an open beta, he said.

That open beta is free in its most basic form — free is limited to 10 users or less and a minimal amount of integration usage. Paid tiers, which cover more team members and up to 100,000 integration tasks (which are measured by how many times a spreadsheet queries another service), start at $59 per month.

One strong sign of interest in this latest iteration of the software will be in the lasting popularity of spreadsheets. Another is Rows’ traction to date: in invite-only mode, it picked up 10,000 users, and hundreds of companies, as customers.

No-code and low-code software, which let people create and work with apps and other digital content without delving deep into the lines of code that underpin them, have continued to pick up traction in the market in the last several years.

The reason for this is straightforward: non-technical employees may not code, but they are getting increasingly adept at understanding how services function and what can be achieved within an app.

No-code and low-code platforms let them get more hands-on when it comes to customizing and creating the services that they need to use everyday to get their work done, without the time and effort it might take to get an engineer involved.

“People want to create their own tools,” said Ayres Pereira. “They want to understand and test and iterate.” He said that the majority of Rows’ users so far are based out of North America, and typical use cases include marketing and sales teams, as well as companies using Rows spreadsheets as a dynamic interface to manage logistics and other operations.

Stephen Nundy, the partner at Lakestar who led its investment, describes the army of users taking up no-code tools as “citizen developers.” 

Rows is precisely the kind of platform that plays into the low-code trend. For people who are already au fait with the kinds of tools that you find in spreadsheets — and something like Excel has hundreds of functions in it — it presents a way of leaning on those familiar functions to trigger integrations with other apps, and to subsequently use a spreadsheet created in Rows to both analyse data from other apps, as well as update them.

You might ask, why is it more useful, for example, to look at content from Twitter in Rows rather than Twitter itself? A Rows document might let a person search for a set of Tweets using a certain chain of keywords, and then organise those results based on parameters such as how many “likes” those Tweets received.

Or users responding to a call to action for a promotion on Instagram might then be cross referenced with a company’s existing database of customers, to analyze how those respondents overlap or present new leads.

There have been a number of other startups building tools that are providing similar no- and low-code approaches. Gyana is focusing more on data science, Tray.io provides a graphical interface to integrate how apps work together, Zapier and Notion also provide simple interfaces to integrate apps and APIs together, and Airtable has its own take on reinventing the spreadsheet interface. For now, Ayres Pereira sees these more as compatriots than competitors.

“Yes, we overlap with services like Zapier and Notion,” he said. “But I’d say we are friends. We’re all raising awareness about people being able to do more and not having to be stuck using old tools. It’s not a zero sum game for us.”

When we covered Rows’s Series A two years ago, the startup had built a platform to let people who are comfortable working with data in spreadsheets to use that interface to create and populate content in web apps. It had a lot of extensibility, but mainly geared at people still willing to do the work to create those links.

Two years on, while the spreadsheet has remained the anchor, the platform has grown. Ayres Pereira, who co-founded the company with Torben Schulz (both pictured above), said that there are some 50 new integrations now, including ways to analyse and update content on social media platforms like Instagram, YouTube, CrunchBase, Salesforce, Slack, LinkedIn and Twitter, as well as some 200 new features in the platform itself.

It also has a number of templates available for people to guide them through simple tasks, such as looking up LinkedIn profiles or emails for a list of people; tracking social media counts and so on.

One of the most common details of spreadsheets, however, has yet to be built. The interface is still banked around rows and columns, with no graphical tools to visualize data in different ways such as pie charts or graphs as you might have in a typical spreadsheet program.

It’s for this reason that Rows has yet to exit beta. The feature is one requested a lot, Pereira said, describing it as “the final frontier.” When Rows is ready to ship with that functionality, likely by Q3 of this year, it will tick over to general “1.0” release, he added.

“Humberto and Torben have really impressed us with their ambition to disrupt the market with a new spreadsheet paradigm that tackles the significant shortcomings of today’s solutions,” said Nundy at Lakestar. “Data integrations are native, the collaboration experience is first class and the ability to share and publish your work as an application is unique and will create more ‘Citizen developers’ to emerge. This is essential to the growing needs of today’s technology literate workforce. The level of interest they’ve received in their private beta is proof of the desirability of platforms like Rows, and we’re excited to be supporting them through their public beta launch and beyond with this investment.” Nundy is also joining Rows’ board with this round.


By Ingrid Lunden

The No-Code Generation is arriving

In the distant past, there was a proverbial “digital divide” that bifurcated workers into those who knew how to use computers and those who didn’t.[1] Young Gen Xers and their later millennial companions grew up with Power Macs and Wintel boxes, and that experience made them native users on how to make these technologies do productive work. Older generations were going to be wiped out by younger workers who were more adaptable to the needs of the modern digital economy, upending our routine notion that professional experience equals value.

Of course, that was just a narrative. Facility with using computers was determined by the ability to turn it on and login, a bar so low that it can be shocking to the modern reader to think that a “divide” existed at all. Software engineering, computer science, and statistics remained quite unpopular compared to other academic programs, even in universities, let alone in primary through secondary schools. Most Gen Xers and millennials never learned to code, or frankly, even to make a pivot table or calculate basic statistical averages.

There’s a sociological change underway though, and it’s going to make the first divide look quaint in hindsight.

Over the past two or so years, we have seen the rise of a whole class of software that has been broadly (and quite inaccurately) dubbed “no-code platforms.” These tools are designed to make it much easier for users to harness the power of computing in their daily work. That could be everything from calculating the most successful digital ad campaigns given some sort of objective function, or perhaps integrating a computer vision library into a workflow that calculates the number of people entering or exiting a building.

The success and notoriety of these tools comes from the feeling that they grant superpowers to their users. Projects that once took a team of engineers some hours to build can now be stitched together in a couple of clicks through a user interface. That’s why young startups like Retool can raise at nearly a $1 billion and Airtable at $2.6 billion, while others like Bildr, Shogun, Bubble, Stacker, and dozens more are getting traction among users.

Of course, no-code tools often require code, or at least, the sort of deductive logic that is intrinsic to coding. You have to know how to design a pivot table, or understand what a machine learning capability is and what might it be useful for. You have to think in terms of data, and about inputs, transformations, and outputs.

The key here is that no-code tools aren’t successful just because they are easier to use — they are successful because they are connecting with a new generation who understands precisely the sort of logic required by these platforms to function. Today’s students don’t just see their computers and mobile devices as consumption screens and have the ability to turn them on. They are widely using them as tools of self-expression, research and analysis.

Take the popularity of platforms like Roblox and Minecraft. Easily derided as just a generation’s obsession with gaming, both platforms teach kids how to build entire worlds using their devices. Even better, as kids push the frontiers of the toolsets offered by these games, they are inspired to build their own tools. There has been a proliferation of guides and online communities to teach kids how to build their own games and plugins for these platforms (Lua has never been so popular).

These aren’t tiny changes. 150 million play Roblox games across 40 million user-created experiences, and the platform has nearly 350,000 developers. Minecraft for its part has more than 130 million active users. These are generation-defining experiences for young people today.

That excitement to harness computers is also showing up in educational data. Advanced Placement tests for Computer Science have grown from around 20,000 in 2010 to more than 70,000 this year according to the College Board, which administers the high school proficiency exams. That’s the largest increase among all of the organization’s dozens of tests. Meanwhile at top universities, computer science has emerged as the top or among the top majors, pulling in hundreds of new students per campus per year.

The specialized, almost arcane knowledge of data analysis and engineering is being widely democratized for this new generation, and that’s precisely where a new digital divide is emerging.

In business today, it’s not enough to just open a spreadsheet and make some casual observations anymore. Today’s new workers know how to dive into systems, pipe different programs together using no-code platforms, and answer problems with much more comprehensive — and real-time — answers.

It’s honestly striking to see the difference. Whereas just a few years ago, a store manager might (and strong emphasis on might) put their sales data into Excel and then let it linger there for the occasional perusal, this new generation is prepared to connect multiple online tools together to build an online storefront (through no-code tools like Shopify or Squarespace), calculate basic LTV scores using a no-code data platform, and prioritize their best customers with marketing outreach through basic email delivery services. And it’s all reproducible, since it is in technology and code and not produced by hand.

There are two important points here. First is to note the degree of fluency these new workers have for these technologies, and just how many members of this generation seem prepared to use them. They just don’t have the fear to try new programs out, and they know they can always use search engines to find answers to problems they are having.

Second, the productivity difference between basic computer literacy and a bit more advanced expertise is profound. Even basic but accurate data analysis on a business can raise performance substantially compared to gut instinct and expired spreadsheets.

This second digital divide is only going to get more intense. Consider students today in school, who are forced by circumstance to use digital technologies in order to get their education. How many more students are going to become even more capable of using these technologies? How much more adept are they going to be at remote work? While the current educational environment is a travesty and deeply unequal, the upshot is that ever more students are going to be forced to become deeply fluent in computers.[2]

Progress in many ways is about raising the bar. This generation is raising the bar on how data is used in the workplace, in business, and in entrepreneurship. They are better than ever at bringing together various individual services and cohering them into effective experiences for their customers, readers, and users. The No-Code Generation has the potential to finally fill that missing productivity gap in the global economy, making our lives better while saving time for everyone.

[1] Probably worth pointing out that the other “digital divide” at the time was describing households who had internet access and households who did not. That’s a divide that unfortunately still plagues America and many other rich, industrialized countries.

[2] Important to note that access to computing is still an issue for many students and represents one of the most easily fixable inequalities today in America. Providing equal access to computing should be an absolute imperative.


By Danny Crichton

COVID-19 is driving demand for low-code apps

Now that the great Y Combinator rush is behind us, we’re returning to a topic many of you really seem to care about: no-code and low-code apps and their development.

We’ve explored the theme a few times recently, once from a venture-capital perspective, and another time building from a chat with the CEO of Claris, an Apple subsidiary and an early proponent of low-code work.

Today we’re adding notes from a call with Appian CEO Matt Calkins that took place yesterday shortly after the company released its most recent earnings report.


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Appian is built on low-code development. And, having gone public back in 2017, it is the first low-code IPO we can think of. With its Q2 results reported on August 6, we wanted to dig a bit more into what Calkins is seeing in today’s market so we can better understand what is driving demand for low, and no-code development specifically, and demand for business apps more generally in 2020.

As you can imagine, COVID-19 and the accelerating digital transformation are going to come up in our notes. But, first, let’s take a look at Appian’s quarter quickly before digging into how its low-code-focused CEO sees the world.

Results, expectations

Appian had a pretty good Q2. The company reported $66.8 million in revenue for the three-month period, ahead of market expectations that it would report around $61 million, though collected analyst estimates varied. The low-code platform also beat on per-share profit, reporting a $0.12 per-share loss after adjustments. Analysts had expected a far worse $0.25 per-share deficit.

The period was better than expected, certainly, but it was not a quarter that showed sharp year-over-year growth. There’s a reason for that: Appian is currently shedding professional services revenue (lower-margin, human-powered stuff) for subscription incomes (higher-margin, software-powered stuff). So, as it exchanges one type of revenue for another with total subscription revenue rising a little over 12% in Q2 2020 compared to the year-ago quarter, and professional services revenue falling around 10%, the company’s growth will be slow but the resulting revenue mix improvement is material.

And most importantly, inside of its larger subscription result for the quarter ($41.4 million) were its cloud subscription revenues, worth $29.6 million for the quarter and up 30% compared to the year-ago period. Summing, the company’s least lucrative revenues are falling as its most lucrative accelerate at the fastest clip of any of its cohorts. That’s what you’d want to see if you are an Appian bull.

Shares in the technology company are up around 45% this year. And with that, we can get started.


By Alex Wilhelm

Hevo draws in $8 million Series A for its no-code data pipeline service

Hevo founders Manish Jethani and Sourabh Agarwal

According to data pipeline startup Hevo, many small- to medium-sized companies juggle more than 40 different applications to manage sales, marketing, finance, customer support and other operations. All of these applications are important sources of data that can be analyzed to improve a company’s performance. That data often remains separate, however, making it difficult for different teams to collaborate.

Hevo enables its clients’ employees to integrate data from more than 150 different sources, including enterprise software from Salesforce and Oracle, even if they don’t have any technical experience. The company announced today that it has raised an $8 million Series A round led by Singapore-based venture capital firm Qualgro and Lachy Groom, a former executive at payments company Stripe.

The round, which brings Hevo’s total raised so far to $12 million, also included participation from returning investors Chiratae Ventures and Sequoia Capital India’s early-stage startup program Surge. The company was first covered by TechCrunch when it raised seed funding in 2017.

Hevo’s Series A will be used to increase the number of integrations available on its platform, and hire sales and marketing teams in more countries, including the United States and Singapore. The company currently has clients in 16 markets, including the U.S., India, France, Australia and Hong Kong, and counts payments company Marqeta among its customers.

In a statement, Puneet Bysani, tech lead manager at Marqeta, said, “Hevo saved us many engineering hours, and our data teams could focus on creating meaningful KPIs that add value to Marqeta’s business. With Hevo’s pre-built connectors, we were able to get data from many sources into Redshift and Snowflake very quickly.”

Based in Bangalore and San Francisco, Hevo was founded in 2017 by chief executive officer Manish Jethani and chief technology officer Sourabh Agarwal. The two previously launched SpoonJoy, a food delivery startup that was acquired by Grofers, one of India’s largest online grocery delivery services, in 2015. Jethani and Agarwal spent a year working at Grofers before leaving to start Hevo.

Hevo originated in the challenges Jethani and Agarwal faced while developing tech for SpoonJoy’s order and delivery system.

“All of our team members would come to us and say, ‘hey, we want to look at these metrics,’ or we would ask our teams questions if something wasn’t working. Oftentimes, they would not have the data available to answer those questions,” Jethani told TechCrunch.

Then at Grofers, Jethani and Agarwal realized that even large companies face the same challenges. They decided to work on a solution to allow companies to quickly integrate data sources.

For example, a marketing team at a e-commerce company might have data about its advertising on social media platforms, and how much traffic campaigns bring to their website or app. But they might not have access to data about how many of those visitors actually make purchases, or if they become repeat customers. By building a data pipeline with Hevo, they can bring all that information together.

Hevo is designed to serve all sectors, including e-commerce, healthcare and finance. In order to use it, companies sign up for Hevo’s services on its website and employees enter their credentials for software supported by the platform. Then Hevo automatically extracts and organizes the data from those sources and prepares it for cloud-based data warehouses, such as Amazon Redshift and Snowflake. A user dashboard allows companies to customize integrations or hide sensitive data.

Hevo is among a roster of “no code, low code” startups that have recently raised venture capital funding for building tools that enable non-developers to add features to their existing software. The founders say its most direct competitor is Fivetran, an Oakland, California-based company that also builds pipelines to move data to warehouses and prepare it for analysis.

Jethani said Hevo differentiates by “optimizing our product for non-technical users.”

“The number of companies who need to use data is very high and there is not enough talent available in the market. Even if it is available, it is very competitive and expensive to hire that engineering talent because big companies like Google and Amazon are also competing for the same talent,” he added. “So we felt that there has to be some democratization of who can use this technology.”

Hevo also focuses on integrating data in real-time, which is especially important for companies that provide on-demand deliveries or services. During the COVID-19 pandemic, Jethani says e-commerce clients have used Hevo to manage an influx in orders as people under stay-at-home orders purchase more items online. Companies are also relying on Hevo to help organize and manage data as their employees continue to work remotely.

In a statement about the funding, Qualgro managing partner Heang Chhor said, “Hevo provides a truly innovative solution for extracting and transforming data across multiple data sources–in real time with full automation. This helps enterprises to fully capture the benefit of data flowing though the many databases and software they currently use. Hevo’s founders are the type of globally-minded entrepreneurs that we like to support.”


By Catherine Shu

Why AWS built a no-code tool

AWS today launched Amazon Honeycode, a no-code environment built around a spreadsheet-like interface that is a bit of a detour for Amazon’s cloud service. Typically, after all, AWS is all about giving developers all of the tools to build their applications — but they then have to put all of the pieces together. Honeycode, on the other hand, is meant to appeal to non-coders who want to build basic line-of-business applications. If you know how to work a spreadsheet and want to turn that into an app, Honeycode is all you need.

To understand AWS’s motivation behind the service, I talked to AWS VP Larry Augustin and Meera Vaidyanathan, a general manager at AWS.

“For us, it was about extending the power of AWS to more and more users across our customers,” explained Augustin. “We consistently hear from customers that there are problems they want to solve, they would love to have their IT teams or other teams — even outsourced help — build applications to solve some of those problems. But there’s just more demand for some kind of custom application than there are available developers to solve it.”

Image Credits: Amazon

In that respect then, the motivation behind Honeycode isn’t all that different from what Microsoft is doing with its PowerApps low-code tool. That, too, after all, opens up the Azure platform to users who aren’t necessarily full-time developers. AWS is taking a slightly different approach here, though, but emphasizing the no-code part of Honeycode.

“Our goal with honey code was to enable the people in the line of business, the business analysts, project managers, program managers who are right there in the midst, to easily create a custom application that can solve some of the problems for them without the need to write any code,” said Augustin. “And that was a key piece. There’s no coding required. And we chose to do that by giving them a spreadsheet-like interface that we felt many people would be familiar with as a good starting point.”

A lot of low-code/no-code tools also allow developers to then “escape the code,” as Augstin called it, but that’s not the intent here and there’s no real mechanism for exporting code from Honeycode and take it elsewhere, for example. “One of the tenets we thought about as we were building Honeycode was, gee, if there are things that people want to do and we would want to answer that by letting them escape the code — we kept coming back and trying to answer the question, ‘Well, okay, how can we enable that without forcing them to escape the code?’ So we really tried to force ourselves into the mindset of wanting to give people a great deal of power without escaping to code,” he noted.

Image Credits: Amazon

There are, however, APIs that would allow experienced developers to pull in data from elsewhere. Augustin and Vaidyanathan expect that companies may do this for their users on tthe platform or that AWS partners may create these integrations, too.

Even with these limitations, though, the team argues that you can build some pretty complex applications.

“We’ve been talking to lots of people internally at Amazon who have been building different apps and even within our team and I can honestly say that we haven’t yet come across something that is impossible,” Vaidyanathan said. “I think the level of complexity really depends on how expert of a builder you are. You can get very complicated with the expressions [in the spreadsheet] that you write to display data in a specific way in the app. And I’ve seen people write — and I’m not making this up — 30-line expressions that are just nested and nested and nested. So I really think that it depends on the skills of the builder and I’ve also noticed that once people start building on Honeycode — myself included — I start with something simple and then I get ambitious and I want to add this layer to it — and I want to do this. That’s really how I’ve seen the journey of builders progress. You start with something that’s maybe just one table and a couple of screens, and very quickly, before you know, it’s a far more robust app that continues to evolve with your needs.”

Another feature that sets Honeycode apart is that a spreadsheet sits at the center of its user interface. In that respect, the service may seem a bit like Airtable, but I don’t think that comparison holds up, given that both then take these spreadsheets into very different directions. I’ve also seen it compared to Retool, which may be a better comparison, but Retool is going after a more advanced developer and doesn’t hide the code. There is a reason, though, why these services were built around them and that is simply that everybody is familiar with how to use them.

“People have been using spreadsheets for decades,” noted Augustin. “They’re very familiar. And you can write some very complicated, deep, very powerful expressions and build some very powerful spreadsheets. You can do the same with Honeycode. We felt people were familiar enough with that metaphor that we could give them that full power along with the ability to turn that into an app.”

The team itself used the service to manage the launch of Honeycode, Vaidyanathan stressed — and to vote on the name for the product (though Vaidyanathan and Augustin wouldn’t say which other names they considered.

“I think we have really, in some ways, a revolutionary product in terms of bringing the power of AWS and putting it in the hands of people who are not coders,” said Augustin.


By Frederic Lardinois

AWS launches Amazon Honeycode, a no-code mobile and web app builder

AWS today announced the beta launch of Amazon Honeycode, a new fully managed low-code/no-code development tool that aims to make it easy for anybody in a company to build their own applications. All of this, of course, is backed by a database in AWS and a web-based drag-and-drop interface builder.

Developers can build applications for up to 20 users for free. After that, the pay per user and for the storage their applications take up.

Image Credits: Amazon/AWS

Like similar tools, Honeycode provides users with a set of templates for commonly use cases like to-do list applications, customer trackers, surveys, schedules and inventory management. Traditionally, AWS argues, a lot of businesses have relied on shared spreadsheets to do these things.

“Customers try to solve for the static nature of spreadsheets by emailing them back and forth, but all of the emailing just compounds the inefficiency because email is slow, doesn’t scale, and introduces versioning and data syncing errors,” the company notes in today’s announcement. “As a result, people often prefer having custom applications built, but the demand for custom programming often outstrips developer capacity, creating a situation where teams either need to wait for developers to free up or have to hire expensive consultants to build applications.”

It’s no surprise then that Honeycode uses a spreadsheet view as its core data interface, which makes sense, given how familiar virtually every potential user is with this concept. To manipulate data, users can work with standard spreadsheet-style formulas, which seems to be about the closest the service gets to actual programming.

AWS says these databases can easily scale up to 100,000 rows per workbook. With this, AWS argues, users can then focus on building their applications without having to worry about the underlying infrastructure.

As of now, it doesn’t look like users will be able to bring in any outside data sources, though that may still be on the company’s roadmap. On the other hand, these kinds of integrations would also complicate the process of building an app and it looks like AWS is trying to keep things simple for now.

Honeycode currently only runs in the AWS US West region in Oregon but is coming to other regions soon.

Among Honeycode’s first customers are SmugMug and Slack. “We’re excited about the opportunity that Amazon Honeycode creates for teams to build apps to drive and adapt to today’s ever-changing business landscape,” said Brad Armstrong, VP of Business and Corporate Development at Slack in today’s release. “We see Amazon Honeycode as a great complement and extension to Slack and are excited about the opportunity to work together to create ways for our joint customers to work more efficiently and to do more with their data than ever before.”


By Frederic Lardinois