Hi and welcome back to our regular morning look at personal business, public markets and the gray area in between.
A cluster of associated companies recently captured our eye by raising capital in rapid-fire style. TechCrunch covered a few of them, and I read coverage of others. Looking back through my notes and the media cycles that they generated, it feels safe to say that
API-based startups are hot right now. What’s enjoyable about this trend is that the start-ups we’re considering are all reasonably early-stage, so they aren’t limping unicorns looking down a closed IPO window. Instead, we’re taking a peek at start-ups that primarily haven’t raised material external capital– yet. They have lots of space to grow.
And the group is rather easy to understand. Sure, I don’t totally grok their underlying tech– that’s a little bit of the point with API startups; they take something complex and use it in an easy-to-consume style– but I do get how they make money. Not only are their business designs relatively easy to understand, there are public companies that generated income from in similar methods for us to use as a structure as the startups themselves scale.
What’s an API-based start-up?
Just: a high-growth company that provides its main service through an application shows interface, or API.
APIs help services interact with other apps, allowing them to carry out jobs or request details quickly and easily. These services are sometimes extremely important due to the fact that they can use something complex and tough, quickly and just.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.