Accel is leading a new funding round for n8n, a Berlin-based AI automation software startup, that will reportedly raise its valuation to US$2.3 billion, according to sources familiar with the matter.

The round is expected to bring in hundreds of millions of euros, with participation from Meritech Capital, a US venture firm, the sources said.

This new valuation marks a sharp rise from n8n’s previous valuation of €300 million (US$350 million) four months ago, according to the same sources.

N8n, founded in 2019, develops software that automates business tasks using AI agents.

N8n’s annual recurring revenue has reportedly surpassed US$40 million, according to one source.

Earlier this year, the company raised €55 million (US$64.12 million) at a valuation of roughly €300 million (US$349.77 million).

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Fair-code licensing drives rapid adoption in competitive automation market

N8n’s explosive valuation growth may be partly explained by its unique “fair-code” licensing model, which allows users to self-host the software for free while offering paid cloud services.

This approach attracted around 16,000 community members by 2021, just two years after launch, providing a strong foundation for growth1.

The model differentiates n8n from competitors like Zapier by giving users full control over their data and deployments while still generating revenue through cloud services and enterprise features2.

Unlike traditional open-source or proprietary models, n8n’s Sustainable Use License allows users to modify and redistribute the software for internal business purposes while preventing competitors from building derivative commercial products2.

This balance appears to have accelerated adoption among technical teams who value data control, while the 400+ integrations and visual workflow builder attract non-technical users seeking automation solutions3.

2️⃣ European AI funding surge reflects global investment concentration

N8n’s valuation jump coincides with an unprecedented AI funding boom, where startups raised $104.3 billion in the first half of 2025 alone—nearly matching all of 20244.