Application program Interface, or API, is a set of protocols that dictates how softwares are built. They also decide how two (or multiple) softwares interact with each other, and are basically the line of communication between consulting apps. Postman, an enterprise API platform, banked upon the need for enterprises to access these protocols, and has hence emerged as a promising startup. The company now looks to take that promise further, as it announces a fresh $150 million in Series C.
The round, which was lead by Insight Partners along with existing Postman investors CRV and Nexus Venture Partners, became the 2nd investment milestone for the startup. Before this, the company had raised $50 million in its Series B funding round an year ago, bringing the total amount of money raised in the year to $200 million. So far, the company has reeled in $207 million in investments. The first $7 million came from a funding round in 2016, led by Nexus Venture Partners.
The round has valued the API company at a whopping $2 billion. While the number holds significance no matter what time, the current COVID-19 crisis and the circumstances that even the biggest startups find themselves in, makes this valuation figure even more significant. The valuation also proves, that if you have the right idea and a potent business model, getting over-the-moon valuations is still a possibility.
Postman plans to use this investment to accelerate product development and rapidly create all the features and capabilities that users have been asking for. “To boost that acceleration, we are hiring across all functions and across all our offices,” the announcement from the company reads. So if you think you have what it takes, you can apply here.
“Today we have 10 million developers and over 500K companies using our comprehensive set of built-in tools to support every stage of the API lifecycle. With Postman you can design, mock, debug, test, document, monitor, and publish your APIs all in one place,” the company’s website states.
The company believes that APIs have tremendous “potential to transform every business in the coming years,” and wants to exploit that potential to its fullest.
Postman said that the rise in demand for APIs stems from 3 major reasons. First, is the consumer side of the argument, which is explained as “The shift from single-device experiences to multi-device experiences has created a skyrocketing need for APIs to power these connected devices.” Then there is the Architecture side of things, which basically stems from the “shift from monoliths to microservices” and is “made possible only by APIs that provide a way to interact with these services.” Lastly, there is the change in Infrastructure which is elaborated as : “The shift from on-premise to cloud means that technology teams are building and deploying APIs faster by quickly provisioning cloud stacks instead of endlessly waiting for hardware to be delivered in the data center.”
The company plans to solve all problems “API related” by using the “API first” approach, which is a scenario where APIs are developed strategically at the beginning of the development of a system. “This allows organizations to build more powerful, more effective APIs, and to realize the full power that APIs can deliver. API-first is the new superpower for companies who embrace it,” the announcement from the company reads.
The company also takes pride itself in its “API network effect” which works a lot like social networks, just for APIs. “…pockets of shared APIs connect teams that have common needs and interests. Within the organization, the more users and teams that are added and connected, the more APIs that are discovered, shared, and utilized. Postman’s API platform makes it easy for users to collaborate on APIs in much the same way that developers collaborate on code with other platforms. Over time, these APIs that teams create will organically spread from team to team and department to department, unlocking data and knowledge-sharing within the organization.”
