The rise of companies with API, in fintech and beyond – TechCrunch

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Companies with the first API are nothing new, but I pay more attention to them after TechCrunch Disrupt 2021, where I moderated panel conversation with Plaid Technical Director Jean-Denis Grezse. Plaid is a fintech company, yes, but not only in fintech API solutions are on the rise – and help solve a wide range of problems. – Anna

Tracking API-first companies

I was trying to define the first API startup when I noticed this Alex already had. And since it’s not easy, I’ll keep the same scope: what I’m talking about today is “any startup that either provides its core value proposition through the API – Twilio, say – or is designed to use the API to facilitate a specific transfer data – AgentSync and others.

The definition above comes from publication in the index of companies with the first API, launched by GGV Capitala multi-stage venture capital firm whose areas of interest include “finding the most promising software companies for developers that commercialize APIs.”

GGV’s thesis on API-led startups has already prompted the company to support it Authentication, Turntable, Mindon, Stream and Agorathe last of which became public in 2020. And outside of the GGV portfolio focused on the API Auth0 was acquired by Okta for a staggering $ 6.5 billion, giving the company another reason to track other private companies using a similar approach.

The GGV index puts aside the outgoing companies and ranks the 50 private API-led companies that have raised the most funding. Due to the lack of an IPO, Stripe topped the list while launching AI / ML Deep program is the last to make an incision after lifting a little $ 56 million in funding to date. In total, says GGV, the first API companies in their index have raised $ 12 billion in funding, including $ 5 billion in 2021 alone.

Beyond fintech

About 40% of the API-First Index of GGV consists of fintech companies. That’s a lot, but it also shows that there is room for companies that are first developers in other spaces. The promise of API companies, GGV writes, is to “basically simplify software development” – and there’s no reason to limit it to banking or payment solutions.

You can also argue that fintech was very iconic for the first wave of API companies, paving the way for a more diverse range of API-driven startups. For example, former Plaid employees have started Stitchthe first non-password authentication API platform that raised a $ 90 million Serie B round last November.

“I understand why a16z he says that every company is a fintech company, but I think there are other areas that need our attention, ” Jorge Madrigal told TechCrunch. He and his co-founder Alex Hernandez are building Vyvantafirst company with an API focused on health data.

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