Start-up technology companies delivering their product or service through an API raised massive amounts of capital during the final year of the 2021 era startup boom. Things have slowed in the intervening quarters.
New data indicates that while the group of companies raised more capital in 2022 than in 2020, a downward trend in fundraising activity over the past calendar year shows that no startup cohort is immune to the venture capital slowdown. And so are the groupings of new technology companies that were among the most popular before the recent downturn.
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GGV, a venture capital firm investing across sectors, stages and geographies an index of what it considers API-first companies which it launched last year. businesskinda.com covered the launch, as we have a soft spot for trackable baskets of startups that we can observe over time; comparable collections from companies like Bessemer provide useful benchmarks for the startup market, especially in a rapidly evolving venture capital and exit environment.
The venture group was recently formed the latest information about 2022share the data with businesskinda.com+ prior to its publication. Tiffany luck And Cheltie Taylor, investors at GGV, were chatting with us about the data. At our request, they also provided a slightly more extensive dataset with an even larger group of API-first startups.
How are API-first startups faring in the face of private market headwinds and some market pessimism about the health of many startups far from their exit point? The answer is mixed. On the one hand, venture capital investments in the startup business model are slowing down, but there is also good news. The tech talent market is slowly unlocking as tech titans release waves of experienced staff, meaning well-capitalized startups — and API-first startups have a lot of money in 2021 — may be able to hire new staff that were previously out of reach.
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