The Power of API Driven Resources In Securing Your VC Funding08 Feb 2014
In the days before the Internet when you had access to a valuable business resource, you kept it to yourself as long as you possibly can, hoping to maximize the potential to your business, and limiting other businesses access to the same resource--if possible you secured some sort of exclusive deal.
In the age of the Internet, APIs have democratized access to extremely valuable resources, making them available to developers and businesses of all shapes and sizes. Resources like mapping from Google Maps, compute power from Amazon, and deployment of of phone numbers around the globe using Twilio, do not take millions of dollars and the negotiations of big deals, they are all accessible to anyone via web APIs.
Even with this wider access to resources, it doesn't mean yCou can’t tell compelling stories about the resources your startup has, like the ability to map from anywhere in the world, unlimited scaling of server capactiy and telephone access points around the globe. If you are a savvy startup you will discover and aggregate the best of breed API resources, then build a business and application around these resources, then tell stories that impress.
The best example of this I’ve seen recently is from PayNearMe, who has leveraged their expansion using API driven resources, resulting in the securing of 20M in funding from GSV Capital:
The expansion to Dollar Store by PayNearMe was done via the Cashtie API, which gives you access to the point of sale systems at top retailers like Target, CVS and Dollar Stores. I’m not saying that PayNearMe secured their 20M in funding exclusively based upon their expansion using Cashtie, but it did allow them to weave it nicely into their overall story, making for a nice investment for GSV Capital.
The growth in the number of high value API resources that are emerging, will provide the backbone of your technical operations, providing the resources you couldn’t possibly develop on your own, but if you craft the right story around your API driven business, you can also leverage these API driven resources to secure the funding you need to take your startup vision to the next level.
Disclosure: Incomm and API Evangelist are exploring partnership possibliites currently.