Despite a challenging fundraising environment characterized by economic factors such as inflation, high interest rates, and a slow exit market, Creatio, located near the Old State House, has recently made an impressive announcement. They have successfully raised $200 million in capital, resulting in a pre-money valuation of $1.2 billion, positioning Creatio as the first local company to reach unicorn status in 2024. This minority investment, led by Sapphire Ventures with participation from StepStone Group and existing investors Volition Capital and Horizon Capital, leaves control in the hands of the founding team, including CEO Katherine Kostereva.
Creatio's valuation milestone comes just six months after Boston's 2023 unicorn class closed with six members. In an interview prior to the announcement, Kostereva remarked that the funding landscape remains similar to what it was in 2021, when Creatio secured $68 million in its initial venture capital round. "Companies that deliver great financial results and grow at 50% year-over-year will always get investments," she said.
Creatio's market potential hinges on the idea that the demand for automation far exceeds the availability of workers with coding expertise. Their software allows non-developers to create their own applications using drag-and-drop functionality, bypassing the need for coding.
