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API-first companies are nothing new, but I’ve been paying more attention to them since Meczyki.Net Disrupt 2021, where I moderated a panel conversation with Plaid CTO Jean-Denis Graze. Plaid is a fintech company, yes, but it is not only in fintech that API solutions are on the rise – and helping to solve a huge array of problems. , Anna
Tracking API-First Companies
I was going to take a step to define API-first startup when I saw that alex was already. And since that’s no easy feat, I’m going to maintain the same scope: What I’m talking about today is “any startup that provides its core value proposition through an API either – Twilio, say – or is built to use the API to facilitate a particular data transfer – AgentSync, etc.”
The definition above comes from a post on the API-First Companies Index launched by GGV Capital, a multistage VC firm whose areas of interest include “finding the most promising developer-first software companies to commercialize APIs”. is included.
GGV’s thesis on API-led startups already backfired certification, pinwheel, Mindy, stream And agoraThe latter of which became public in 2020. and API-focused, outside GGV’s portfolio Auth0 Okta for $6.5 billion, giving the firm another reason to track down other private companies using a similar approach.
index of GGV Leaves exiting companies aside and ranks the 50 API-led private companies that have raised the most funding. Due to the lack of an IPO, Stripe tops the list, while AI/ML startups Deepgram is the last one to cut, some picked up $56 million in funding to date. GGV says that in total, API-first companies have raised $12 billion in funding to its index, including $5 billion in 2021 alone.
Fintech companies account for about 40% of GGV’s API-First index. That’s a lot, but it also shows that there is room for developer-first companies in other places. The promise of API companies, GGV wrote, is to “fundamentally simplify software development” — and there’s no reason it would be limited to banking or payment solutions.
You could also argue that fintech was too symbolic for the first wave of API companies, paving the way for a more diverse range of API-led startups. For example, former employees of Plaid launched stitchAn API-first passwordless authentication platform that raised a $90 million Series B round last November.
“I get why a16z They say That every company is a fintech company, but I think there are other areas that we need to focus on.” George Madrigal told Meczyki.Net. He and his co-founder Alex Hernandez are producing VivantaAn API-first company focused on health data.