Craft Docs Raises $25M Series B: Document Editor Market Heats Up

Category: News · Stage: Awareness

By Chaos Content Team

Craft Docs announced a $25 million Series B on November 8, 2025, led by Icon Ventures with participation from existing investors. The funding comes three years after their $14M Series A and signals that investors see sustained competition in the document editor space.

The market question: can multiple "Notion competitors" coexist, or is this headed toward consolidation?

What Craft Does Differently

The positioning: Beautiful native Mac/iOS apps for individuals and small teams who prioritize design and Apple ecosystem integration over Notion's database features.

Key differentiators:

Native apps (not web-wrapped)—faster, better UX on Apple platforms
Daily notes inspired by Roam Research
Local-first option (documents stored on device, not just cloud)
Cleaner aesthetics (subjective, but fans are passionate)

What it doesn't have:

Databases and complex views (Notion's strength)
Advanced automation (no API, limited integrations)
Team workspace features (basic compared to Notion)
Cross-platform (Mac/iOS only, no Windows/Android)

Target user: Individuals and small teams (2-5 people) who want elegant writing experience over powerful databases.

Market Context: The Document Editor Landscape

Total addressable market: ~50 million knowledge workers globally use note-taking/document tools daily.

Current major players:

Notion (~30M users, $10B valuation)

All-in-one workspace (docs, databases, wikis, projects)
Strong team collaboration
Weakness: Slower performance, less elegant on mobile

Microsoft OneNote (millions of enterprise users)

Free, bundled with Office 365
Enterprise integration
Weakness: Dated UX, less modern than Notion

Obsidian (~1M users, bootstrapped)

Local-first, markdown, plugin ecosystem
Power user favorite
Weakness: Steeper learning curve

Craft (~1M users, $39M raised)

Apple ecosystem native
Beautiful UX, daily notes
Weakness: Platform-limited, fewer power features

Bear, Ulysses, iA Writer (writing-focused)

Single-purpose, excellent at writing
Weakness: Not full workspace replacements

What the Funding Signals

1. Investors Bet on Niche Differentiation

The thesis: Notion dominates all-in-one workspace, but niches remain viable for focused tools with strong differentiation.

Craft's differentiation: Apple ecosystem excellence. Users who want native Mac/iOS experience pay premium ($45/year vs. Notion's free tier).

Similar successful niches:

Superhuman (email): 2× Gmail cost, justified by speed/UX
Linear (project management): Premium over Jira, justified by developer focus
Raycast (launcher): Superior to Spotlight for power users

The pattern: Charge more, serve fewer users better.

2. Feature Parity Isn't the Goal

Craft will never match Notion feature-for-feature. That's not the strategy.

The strategy: Be best-in-class for specific workflows:

Daily journaling (Roam-style)
Long-form writing (book drafts, articles)
Personal knowledge management (solo or small team)
Apple ecosystem integration (SharePlay, widgets, Handoff)

Customers choosing Craft over Notion aren't saying "Craft has better databases" (it doesn't). They're saying "I don't need databases, I need better writing experience."

3. Local-First Is Compelling

Growing demand for data ownership and offline-first tools.

Craft's advantage: Documents stored locally, sync when online, full functionality offline.

Notion's weakness: Cloud-only, limited offline mode, data lives on their servers.

Market trend: Privacy-conscious users and regulated industries (legal, medical, government) increasingly prefer local-first tools.

Competitors in local-first:

Obsidian (fully local)
Logseq (local + open source)
Apple Notes (iCloud but local)

Craft positions between cloud-only (Notion) and fully local (Obsidian).

Funding Use: What's Coming

From announcement: "Expand team, accelerate product development, grow user base."

Translation (reading between lines):

Likely investments:

Web and Windows apps (addressing platform limitation)
Team collaboration features (competing with Notion workspaces)
Integration ecosystem (API, Zapier, third-party tools)
Enterprise features (SSO, admin controls, audit logs)

What probably won't change:

Core philosophy (native experience, design-first)
Target customer (individuals and small teams, not large enterprises)
Apple ecosystem focus (even if expanding platforms)

Competitive Response Predictions

Notion:

Likely improving mobile apps (current weakness vs. Craft)
May add local-first mode (responding to privacy demand)
Continues enterprise push (where Craft can't compete)

Obsidian:

Remains bootstrapped (successful without VC)
Focus on plugin ecosystem and power users
Mobile experience improvements (current gap vs. Craft/Notion)

Apple:

Apple Notes continues incremental improvements
Won't match Craft's features but "good enough" for many
Free and pre-installed = tough competitor

Microsoft:

OneNote likely gets redesign (current UX lags)
Loop (new tool) competes with Notion more than Craft
Enterprise integration remains key advantage

For Users: What This Means

If You're Using Craft

Good news:

Company is well-funded, not shutting down soon
Expect feature velocity to increase
Platform expansion likely (web, Windows)

Considerations:

May shift toward teams/collaboration (from pure individual focus)
Pricing might increase as features expand
Core experience should remain excellent

If You're Choosing a Tool

Choose Craft if:

You're Mac/iOS only and value native apps
You want beautiful UX for writing and journaling
You're solo or small team (<5 people)
You don't need complex databases

Choose Notion if:

You need databases, automation, complex views
You work on Windows/Android
You have large team (>10 people)
You want all-in-one workspace

Choose Obsidian if:

You want local-first and data ownership
You're technical and enjoy customization
You value plugin ecosystem
You don't need cloud collaboration

Choose Apple Notes if:

You want free and simple
You're deep in Apple ecosystem
You don't need advanced features
"Good enough" is genuinely good enough

Market Consolidation vs. Fragmentation

Fragmentation thesis (current state): Multiple viable players serve different niches. Craft (Apple users), Notion (all-in-one), Obsidian (power users), OneNote (enterprise), Bear (writers) all coexist.

Consolidation thesis (possible future): Market tilt toward one or two dominant players. Others become niche or fail.

What funding suggests: Investors betting on fragmentation continuing. If consolidation were inevitable toward Notion monopoly, Craft wouldn't raise $25M.

Precedents:

Email: Gmail dominated consumer, Outlook dominated enterprise, Superhuman found premium niche.

Browsers: Chrome dominates but Firefox, Safari, Arc survive with differentiation.

Project management: Jira dominates large teams, Linear succeeds with developer focus, Asana survives in mid-market.

Pattern: Large market supports multiple tiers and niches.

Document tools likely similar: Notion won't win 100%. Room for Craft (premium Apple), Obsidian (power users), OneNote (enterprise), and others.

Key Takeaways

Craft's $25M Series B signals investors believe document tool market can support multiple differentiated players. Not winner-take-all; niche positions remain viable with clear differentiation.

Craft's differentiator is Apple ecosystem excellence and design-first approach. Native Mac/iOS apps, beautiful UX, daily notes, and local-first option serve users who prioritize experience over Notion's database power.

Funding likely enables platform expansion and team features. Expect web/Windows apps, improved collaboration, integration ecosystem, and enterprise capabilities—addressing current limitations.

For users, tool choice depends on specific needs: Craft for Apple users wanting elegance, Notion for all-in-one power, Obsidian for local-first customization, Apple Notes for free simplicity.

Market structure favors fragmentation over consolidation. Multiple viable tools (Notion, Craft, Obsidian, OneNote, Bear) serve different user segments. Pattern mirrors email, browsers, and project management where dominant players coexist with successful niches.

Sources: Craft Docs Series B announcement, productivity tool market analysis, user base estimates, competitive landscape research