Low-Code / No-Code Platforms Attracting Capital

Mayur Toshniwal
Published on June 18, 2025
Low-Code / No-Code Platforms Attracting Capital

Table of Contents

Arrow Down
[ez-toc]

Low-code/no-code (LCNC) platforms are rapidly emerging as a focal point for capital investment in the technology sector. Their ability to democratize software development, accelerate innovation, and reduce costs has not only transformed business operations but also captured the attention of investors seeking scalable, high-impact opportunities. As organizations across industries prioritize digital transformation, LCNC platforms are increasingly seen as essential infrastructure, driving a surge in venture capital and private equity interest.

Investors are increasingly drawn to these platforms because they address critical pain points in traditional development processes. A thorough discussion of software startup fundraising strategies in the comprehensive guide provides additional context that frames how low-code/no-code platforms attract capital.

In this article you will see how these LCNC platforms is changing the funding environment. Let's get started!

What is Low-Code/No-Code Development?

Low-code and no-code development platforms are transforming the way applications are built, offering simplified tools that cater to both technical and non-technical users. These platforms eliminate the complexities of traditional coding by providing visual interfaces and drag-and-drop functionalities, making software creation accessible to a broader audience.

Low-code platforms require minimal coding knowledge, enabling developers to accelerate the application-building process while maintaining customization capabilities. On the other hand, no-code platforms are entirely visual, allowing users with no programming experience to design and deploy applications seamlessly. This distinction empowers business users, often referred to as "citizen developers," to create enterprise-grade solutions without relying heavily on IT departments.

The democratization of software development through these tools has led to faster delivery cycles and reduced dependency on traditional coding methods. For instance, integrating a no-code platform like Bubble can help prototype new apps quickly, bypassing the overhead associated with conventional development processes. This approach not only saves time but also fosters innovation by enabling rapid experimentation.

For example, insights into AI SaaS funding trends highlight how these platforms are influencing capital allocation across software models, showcasing their role in shaping the future of application development.

The funding landscape for low-code/no-code (LCNC) platforms in 2025 is characterized by rapid growth, strong adoption, and robust investor enthusiasm.

  • Record-breaking investment volumes:
    The global low-code development platform market is forecast to generate $187 billion in revenue by 2030, up from $10 billion in 2019, reflecting a compound annual growth rate (CAGR) of 31%. In 2021, the market was valued at $7.61 billion and is projected to reach $36.43 billion by 2027. This surge is driven by widespread enterprise adoption and investor confidence in the sector’s scalability and long-term value.
  • Increased deal activity:
    Major LCNC vendors have attracted substantial capital. For example, OutSystems has raised $422.1 million, Mendix $38 million, ServiceNow $83.7 million, and Appian $47.5 million in funding rounds. The number of businesses leveraging LCNC platforms has soared, with 84% of organizations now using these solutions to address developer shortages. By 2025, 70% of new applications developed by organizations will use low-code or no-code technologies, up from less than 25% in 2020.
  • Sectoral expansion:
    The adoption of LCNC platforms is expanding beyond general-purpose solutions into vertical-specific applications, particularly in healthcare, finance, and logistics. Enterprises are seeking out platforms that can address industry-specific regulatory and operational needs, further fueling investment in specialized LCNC startups.
  • Strategic acquisitions:
    Larger technology firms are actively acquiring LCNC startups to enhance their digital transformation capabilities and expand their market reach. This M&A activity validates the sector’s value proposition and reflects a maturing market where both horizontal and vertical solutions are in demand.

Key supporting statistics:

  • By 2025, 70% of new business applications will use low-code/no-code technologies.
  • The low-code/no-code market is projected to reach $101.7 billion globally by 2030.
  • 75% of large enterprises will use at least four low-code development tools by 2025.
  • 41% of businesses have active citizen development initiatives, and 20% more are evaluating or planning to start such initiatives.

These trends underscore why low-code/no-code platforms have become a magnet for capital investment in 2025, with both established vendors and innovative newcomers benefiting from strong market momentum and investor confidence.

Actionable Strategies: How LCNC Startups Can Attract Capital

To maximize their appeal to investors in 2025, LCNC startups should:

  • Demonstrate clear market traction with strong user growth, retention, and case studies from enterprise clients.
  • Highlight differentiated technology, such as advanced AI features or seamless integration capabilities.
  • Show robust governance and compliance measures, especially for platforms targeting regulated industries.
  • Present a scalable business model with a clear path to profitability and expansion.
  • Align with investor priorities by showcasing vertical expertise and a compelling vision for future growth.

By focusing on these strategies, startups can position themselves as attractive investment opportunities in a highly competitive market.

Why Startups are Betting Big on Low-Code/No-Code

Startups are increasingly turning to low-code/no-code (LCNC) platforms to accelerate their growth and innovation. These tools empower businesses to create software faster and at a fraction of the cost compared to traditional development methods. By enabling non-technical users to build applications, startups can focus on delivering value without being bogged down by extensive coding requirements.

One of the key advantages of LCNC platforms is their ability to streamline development while reducing technical debt. For example, the Kissflow Platform allows non-technical users to quickly create enterprise-grade workflows, minimizing overhead and freeing up resources for other priorities. This approach ensures startups can prototype and iterate rapidly, staying ahead in competitive markets.

Additionally, LCNC platforms integrate advanced AI capabilities, which further enhance innovation and efficiency. Tools like Blaze enable business users to focus on domain-specific logic, while IT teams handle seamless integrations. This division of responsibilities reduces bottlenecks and ensures that startups can adapt quickly to market demands.

What Investors Are Looking For in LCNC

Investors are increasingly selective, focusing on LCNC platforms that demonstrate:

  • Scalability: The ability to serve a broad user base and support complex, enterprise-grade applications.
  • Governance and security: Robust frameworks for compliance, data protection, and risk management.
  • AI integration: Platforms that leverage AI for automation, analytics, and intelligent workflow generation are particularly attractive.
  • Vertical specialization: Solutions tailored to high-growth or highly regulated sectors stand out in a crowded market.
  • Strong user adoption metrics: High engagement rates and customer retention are key indicators of product-market fit.

These priorities reflect a shift toward sustainable, defensible business models capable of long-term growth and resilience.

Case Studies: Notable LCNC Funding Rounds

Recent funding rounds highlight the growing momentum behind LCNC platforms:

  • Mendix and OutSystems have continued to secure large investments, reinforcing their leadership in the enterprise LCNC space.
  • Startups like Betty Blocks and Unqork have attracted significant capital by specializing in industry-specific solutions, such as financial services and public sector applications.
  • Acquisitions by major tech firms—including Microsoft’s continued investment in Power Platform, demonstrate the strategic importance of LCNC capabilities in broader digital ecosystems.

These examples illustrate how both generalist and specialist LCNC platforms are drawing investor attention, driven by their ability to deliver rapid ROI and address critical business challenges.

Conclusion

Accelerating innovation while reducing costs is achievable with the right strategies. Throughout this blog, we explored how LCNC platforms empower startups to streamline development processes, enabling faster delivery of solutions without compromising quality. Equally important is establishing robust governance frameworks, which not only ensure compliance but also instill confidence in investors, making your startup more attractive for capital infusion.

The actionable insights and data-driven strategies shared here provide a clear roadmap for startups aiming to optimize their operations and scale effectively. Whether it's adopting rapid development methodologies or aligning your goals with investor expectations, these approaches can significantly impact your growth trajectory.

If you're looking to secure the capital your startup needs, we at Qubit Capital can help with our Fundraising Assistance service. Let’s get started today!

Key Takeaways:

  • LCNC platforms accelerate innovation and reduce time-to-market, attracting significant capital.
  • They simplify complex programming tasks through intuitive, visual development tools.
  • Robust governance and compliance are key to scaling LCNC initiatives effectively.
  • Integration of AI and automation enhances efficiency and future-proofing.
  • Investor interest is driven by cost efficiency and rapid return on investment (ROI).

Frequently asked Questions

What is low-code/no-code development?

Low-code/no-code development involves using visual interfaces and minimal coding to create applications, making software development more accessible and faster.

Why should businesses invest in low-code/no-code platforms?

What are the best low-code/no-code platforms for startups?

How does low-code/no-code impact software development costs?

What are the risks of investing in low-code/no-code solutions?