VCs Deny Investing in No- and Low-Code Companies over Durability

The struggles of no-code and low-code companies to nab funding from global VCs in 2022 and beyond

No-code and low-code companies are growing in the global tech market and still waiting for a breakout point with support from venture capitalists (VCs). No-code companies are focused on helping companies that lack employees who have sufficient knowledge of any programming language such as Python, R, and many more. VCs are in favor of the companies leveraging cutting-edge technologies such as artificial intelligence, machine learning, IoT, cloud computing, and so on. But multiple low-code companies and no-code companies are still lacking the relevant support from VCs with million-dollar funding from different Series A, Series B, and so on. They want to bridge the gap between the demand for a programming language and the developer shortage with multiple software development tools.

What are the goals of low-code companies and no-code companies?

There are multiple promises ensured by multiple emerging low-code companies as well as no-code companies. It includes accelerating productivity and enhancing the growth of development in the software domain. No-code companies want coding to be accessible to everyone, even who lacks the knowledge of a programming language. Low-code companies are offering multiple low-code tools to aim at developers, coders, programmers, and everyone with a basic knowledge of a programming language. These companies allow developers and other programming language professionals to add their code as per the necessary needs. No-code companies provide every tool to build an app for any smart device without knowing anything about a programming language or coding.

VCs are not funding no-code/low-code companies more

It is evident that multiple no-code companies and low-code companies are creating a storm in the global tech market with multiple benefits for people from non-technical backgrounds. Companies can actually leverage multiple no-code and low-code tools to reap the benefits such as faster speed, better efficiency, and more accessibility to a programming language. Venture capitalists (VCs) should know the purposes of these platforms— solving developer scarcity as well as empowering the non-technical employees to work on smart applications with just a drag-and-drop user interface.

Many people are gradually having a deep understanding of the purposes of low-code companies as well as no-low companies. It is gaining popularity only when there is a shortage of the supply of developers and the need for adopting digital transformation in businesses with necessary tools.

According to VCs, the emerging low-code and no-code industries will be difficult to continue with profit in the nearby future. There is a concern among the community of venture capitalists whether the target audience should be developers, coders, and programmers with the use of no-code as well as low-code development tools. Despite knowing the advantages offered by these low-code companies and no-code companies regarding the use of a programming language, VCs are not fully mentally ready to invest millions of dollars in this industry.

Venture capitalists consider that these companies may not help in building proper customer-facing applications in the global tech market with just drag-and-drop tools. It is still a relevant question when will be the correct time for no-code companies and low-code companies will receive millions of dollars of attention from venture capitalists (VCs) across the globe. There is not a huge hope in the community of VCs that these companies will survive in the global tech market and programming language market in the long run. There is a still need to work against the natural and existing stigma of leveraging low-code and no-code platforms for the internal teams, without the knowledge of a programming language. VCs still have the fear of investing in low-code companies and no-code companies can provide tools that get unruly without any proper governance. They also think that pre-coded element interfaces will not cover the edge cases to make the users depend on the current workflows. The future of low-code companies and no-code companies can become a bit saturated on the horizontal level which can reduce the rate of productivity. Meanwhile, there is some funding coming from the VCs such as startups like Builder.ai, Genesis Global, and a few others that have nabbed US$100 million to serve the goals successfully in the global tech market. But overall, the market of low-code and no-code is feeling low without any full support and real value from the VCs. These companies have not received proper ground-breaking moments in the global tech market in 2022.