Why Is Building A Startup Now Like Lego? Because Of The API Economy.

August 17, 2021

How APIs are making it easier and faster for founders to build tech companies.

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Creating a startup nowadays is like playing with Lego. And each lego piece is an API. 83% of web traffic is now API.
What is an API? Application Programming Interface. APi is a software intermediary that allows different applications to communicate.
Here's an example. Uber needs a map in their app for drivers. But Uber can not write all the code for this. So it uses the Google Maps API. Now Uber has a high quality map.
API changed how we build. Before, you had to build everything yourself. If you wanted your customers to pay, you had to code the entire payment section. Now you can do it in minutes with Stripe's API. There are APIs for everything. Accounting, data management, privacy, communication, Twitter, Facebook, Salesforce.
What does this mean? We're in a new era where you can spend less time writing code for everything. Simply connect with different APIs. Like Lego. So now Uber can use Google Maps, Stripe, AWS, and Twilio.
We predict that API use cases will continue to grow and fuel the low-code movement. APIs will also become easier to implement.
4 API Opportunities. API enables as the picks and shovels of the API economy. Kong helps companies manage their APIs. Salt Security protects APIs. RAPI API is a marketplace. Niche API. API Blockchain decentralizes the API economy so that there is no single entity that owns the data. information would be trusted and free flowing. You can also become an API consultant or specialist.
Companies to watch: Twilio, Plaid, Segment, Spruce, Nylas, FalconX, Dock.io, Kong, Rapid API, Alpaca.

Creating a startup nowadays is like playing Lego.

And each Lego piece is an API.

APIs are the foundation of the modern tech economy. And the future.

In fact, 83% of web traffic is now API traffic.

Wait, what's an API?

API = Application Programming Interface

API is a software intermediary that allows different applications to communicate with each other.

Here's an example:

  • Uber needs a map in their app for riders/drivers.
  • But there's no way Uber can write all the code to build this from scratch.
  • So it uses the Google Maps API.
  • Now Uber has a high quality map with little effort!

API Changed How We Build

Before, you had to build everything yourself.

If you wanted your customers to pay in your app, you had to code the entire payment section.

Now, by using Stripe's API, your payment section is complete within minutes.

There are APIs for everything: accounting, data management, privacy, communication, Twitter, Facebook, Salesforce, etc.

APIs solve complex problems with just a couple lines of code. They also tend to solve niche but critical problems.

So what does all this mean?

We're in a new era where you can spend less time writing code for everything. Simply connect with different APIs to create your business.

Sort of like Lego.

So then Uber can use:

  • Google Maps API for their map
  • Stripe API to pay their drivers
  • AWS API for their servers
  • Twilio API to communicate with users

Uber can now focus on their core technology - matching the rider and the driver.

By focusing on their core technology, startups can bring more value to customers - while being faster at a lower cost.

APIs democratize creation.

We Predict That...

API use cases will continue to grow and thus fuel the Low-Code movement.

APIs will also become easier to implement (especially for non-technical people!)

4 API Opportunities:

API Enablers

Companies have emerged as the "picks and shovels" of the API economy. Kong helps companies manage their APIs. Salt Security protects APIs. And Rapid API is a marketplace for APIs. What other solutions will there be to support the growing API economy?

Niche API

There are niche APIs like: flight data, memes, and paraphrasing. Is there a niche that you could create an API for? Or could you use a niche API to build something?

API x Blockchain

Companies currently have full control over their APIs. For example, Linkedin shut down access to most of its APIs after it got too popular. However, there is a new wave of API that uses the blockchain. The blockchain decentralizes the API economy so that there is no single entity that owns the data. This allows information to be trusted and free flowing. What can you do to capitalize on this trend?

API Consultant / Specialist

Become "The API Guy".  You can consult companies on how to better use API to grow their business (ie. automation, efficiency, etc) . Companies like Good API offer such services.

Companies to watch:

Sources

APIs All The Way Down

The API Economy Gold Rush

What Is The API Economy And How Brands Can Benefit From It

Blockchain to Catalyze a Second-Wave API Economy

The Third Party API Economy

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