This week, no-code app builder Stacker, announced a $1.7M seed round led by Initialized Capital, with participation from Y Combinator, Pioneer Fund and, Markerpad. Capital from the round, which closed in September, will be used to help Stacker expand their product and engineering teams to develop more customer use-cases. Looking ahead, Stacker hopes to capitalize on the digital transformation trend by enabling non-technical employees to build software using existing data from spreadsheets and other SaaS tools.
Why this transaction?
The York IE team chose this as our transaction of the week to discuss the emergence of the “no-code/low-code” trend that is enabling non-technical employees to become developers of their own web apps. By making app development intuitive and fast, Stacker enables users to create purposeful web applications without needing assistance from an engineering team. In 2019, Harvard Business Review listed “lack of digital capabilities” as one of the top two reasons organizations fail with digital transformation; Stacker co-founder, Sam Davyson, says “The solution isn’t to add more developers: it’s to give the power to create the software to the people who have the need”. Allowing teams to build internal apps end-to-end means they can go from an idea to a launched app much quicker, eliminating the need for expensive developer resources. In previous TOW blogs, we’ve spoken at length about digitization of workflows and the custom softwares helping employees do their job. Traditionally, only large enterprises, with expendable developer resources, were the ones creating custom software for internal users. Now, as digitization continues, SMB’s are able to create those same internal apps without the need for large developer teams.