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.
In Q2, we observed exciting changes to the API-First Index:
• Four new entrants to the API-First Index: Atomic, Courier, Fidel API, Modern Treasury
• One acquisition: Embed acquired by FTX
GGV Capital is tracking over 150 API-first companies. We have published the API-First Index below to highlight the top 50 private companies based upon total funding raised*. 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.