The GGV Capital API-First Index
At GGV Capital, we are focused on finding the most promising developer-first software companies commercializing APIs, having already backed Agora, Authing, Pinwheel, Mindee, and Stream. We are going all-in on API companies because they will fundamentally simplify software development. APIs will allow developers to offload lower-value and time-consuming components of application development so they can focus on higher-value work. For example, instead of a company asking its developers to spend months writing code to accept payments for its software, they can get up and running quickly with Stripe. For authentication, they can use Auth0. For chat, they can use Stream.
We expect the use of APIs to continue growing exponentially in the next few years, and many promising companies are building with an API-first approach, including Algolia for search, Mux for video, and Commerce Layer for e-commerce. The public markets are also taking notice. Twilio and Agora are now publicly traded. Okta acquired Auth0 for $6.5B. SoFi acquired Galileo for $1.2B. We expect this trend to continue.
We observed exciting changes to the API-First Index in Q3:
• Increased the Index from 50 companies to 60+ companies that have now raised over $50M; this group raised $350M+ in Q3 across 8 rounds (including rounds for undisclosed $ amounts) & $14B in total funding
• Twelve additions to the API-First Index: AssemblyAI, Belvo, Deepgram, Fabric, Fauna, League, Lokalise, Patch, Sardine, Solid, Truelayer, Truework
Q2 Update Highlights
• 50 companies raised $600M in Q2 across 8 rounds & $13B in total funding
• Four additions to the API-First Index: Atomic, Courier, Fidel API, Modern Treasury
• One acquisition: Embed acquired by FTX
Q1 Update Highlights
• 50 companies raised $1B in Q1 across 16 rounds & $12B in total funding
GGV Capital is tracking 150+ API-first companies. We have now expanded the API-First Index to include the 60+ private companies that have raised $50M+ in funding. With this Index, we are focusing on API-first companies and have not included the broader and flourishing API economy (but are also very excited about this, having backed Kong and Tray.io!). If you are building API-first, we would love to meet you! Please contact us to be included in our list.