Does Google penalize websites with no backlinks?
No, Google do not penalize websites with no backlinks. However, it can be difficult to rank highly in search engines if you don't have backlinks, exception that your content targets long-tail keywords.
Websites with no backlinks are likely to be less popular in the eyes of Google algorithm signals. Have a look at these Google Guidelines.
If you want your website to rank highly in search engines, it's best to build backlinks from relevant and high-quality websites. They give your site the boost it needs to rank higher in search results [by passing link equity or link juice].
At the same time, do remember that, Google generally penalizes those websites or blogs that practice black-hat SEO techniques.
“If your website is relatively new, you’ll struggle to rank for high-competition keywords. It’s better to start by targeting low-difficulty keywords and gradually working towards more competitive ones as you earn more backlinks and generate more organic traffic” – Ahrefs
Here's related information that you may also find helpful - Type of Backlinks Google Ignore
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