N8N Secures $60M to Revolutionize Workflow Automation with AI: The Fair-Code Pioneer
In the rapidly evolving world of developer tooling, artificial intelligence (AI) is playing a pivotal role in enhancing workflows. Companies dedicated to streamlining the adoption of AI are experiencing significant growth. One such example is n8n, a Berlin-based startup that has transformed its workflow automation platform to be more AI-friendly, resulting in a remarkable revenue increase.
n8n’s Growth and Funding Success
After pivoting its platform in 2022, n8n has reported a staggering fivefold increase in revenue, with a recent doubling in just two months. This impressive growth has led to the company securing €55 million (approximately $60 million) in funding, raising its valuation to around €250 million ($270 million), as confirmed by TechCrunch.
Customer Base and Market Expansion
Currently, n8n serves over 3,000 enterprise clients and boasts around 200,000 active users. The startup plans to utilize the funds from its Series B round to enhance its technology and expand into new markets, particularly the U.S., which hosts more than half of its user base. Notably, the customer count includes both free and paid users.
Investment and Backing
This funding round is spearheaded by Highland Europe, with participation from HV Capital and previous investors including Sequoia, Felicis, and Harpoon. Sequoia was instrumental in n8n’s seed round in 2020, followed by Felicis during the Series A round in 2021.
Origins and Developer Community Engagement
Founded in 2019, n8n gained traction among developer teams seeking low-code and no-code automation solutions to simplify application integration. The platform has also established a strong reputation based on the principles of fair code, a concept aimed at compensating open-source creators when their work is commercialized. Jan Oberhauser, the founder and CEO of n8n, is a proponent of fair code and runs a dedicated website on the topic.
Integration of AI in Automation
While n8n has built a solid foundation as an open-source platform—garnering over 70,000 stars on GitHub—the integration of AI has become its key growth driver. Generative AI complements automation, simplifying processes further. Competitors like Tines and Workato, as well as industry leaders like UiPath, are also embracing this trend.
Oberhauser noted that about a year and a half ago, they recognized the potential of AI and began incorporating it into their products. This integration aimed to reduce the workload of developers by transforming complex coding tasks into natural language instructions.
Enhancing User Experience with Natural Language
“It’s a prompt to build workflow,” Oberhauser explained. Users can now create automation instructions in plain language rather than writing extensive code. For instance, instead of coding 50 lines to send an email, users can simply state, “get information from X and send it to Y.”
Community and Market Trends
Even with the initial slow uptake of the AI-powered version of n8n, a tipping point was reached last year. This shift can be attributed to the surge in interest surrounding AI in coding, with various companies raising significant funding. As awareness of practical AI applications grew among users, n8n’s ease of use became a decisive factor in its adoption and appeal to investors.
David Blyghton, a general partner at Highland, emphasized, “Everyone is trying to leverage AI but struggling to find practical use cases. The design, scale, and throughput of n8n are what enable user adoption.” Oberhauser noted that approximately 75% of n8n’s customers are now utilizing the AI tools they have developed, signaling strong market acceptance.
For more insights on the transformative impact of AI in developer tools, check out our related articles on developer tools and AI in business.
