Framer hits $2 billion valuation in latest funding round

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(Reuters) -Website design platform Framer said on Thursday it had notched a valuation of $2 billion while raising $100 million in its latest funding round.

The series D round, led by current investors Meritech and Atomico, highlights venture capitalists’ optimism in software startups that help companies build professional websites with minimal developer involvement.

Optimism around potential U.S. interest rate cuts and a strong equities market has also encouraged capital flows back into growth-stage companies, following a long spell of muted startup funding.

Framer was founded in 2015 in Amsterdam by Koen Bok and Jorn van Dijk, who previously worked at Meta’s Facebook.

The company offers a design software used to make interactive prototypes for iOS, Android, desktop, and the web.

Framer raised $27 million in its last funding round in September 2023, and counts startups such as Scale AI, Perplexity, Miro and Bilt among its customers. The company has around half a million monthly active users, it said in its statement.

VCs poured $162.8 billion into deals in the first half of the year, about 30% of which went towards late-stage fundings, according to data from PitchBook.

A recovering market for initial public offerings has also improved exit opportunities and given investors confidence to sign big checks for promising startups.

Design software maker Figma went public in a blockbuster IPO last month, while stablecoin giant Circle’s shares also surged in a blowout debut in June.

(Reporting by Anuj T in Bengaluru; Editing by Leroy Leo)