2M API CALLS AT
A $2B VALUATION
Tyler Singletary
Klout Data, Lithium Technologies
Director of Platform
@harmophone
http://developer.klout.com
CAST(API_MANAGERS) AS VENTURE_CAPITALISTS
Platforms deliver value.
Platforms invest their resources through that value.
MODELS FOR VALUE
• Distribution/Ubiquity
• Unit Model
• Direct Dollars
• Strategic Value
• Trojan Horse
API RELATIONSHIPS
• All of these models require a two-
way communication
• Consumers get the data, access,
and relationships
• Mutual sharing of roadmaps,
demos, key accounts and
relationships
• External Product Management,
board meetings
SOME OF OUR ‘INVESTMENTS’
SOME OF OUR ‘INVESTMENTS’
SOME OF OUR ‘INVESTMENTS’
BUT
• There are plenty of failures
• We aren’t angels:
– Strategic advantages through
distribution
– Trojan Horse in an acquisition
– Eventual paid plans
2M API CALLS AT
A $2B VALUATION
Tyler Singletary
Klout Data, Lithium Technologies
Director of Platform
@harmophone
PHOTO CREDS
https://www.flickr.com/photos/annrkiszt/7085340853/in/photolist-bN7dZc-rXabSJ-Pkwqi-dLgtPD-6zn7s5-9CCy5U-7WTkQW-nmPjBr-dV6uMN-a3xUqj-cr3eaE-z
https://www.flickr.com/photos/8113246@N02/8552421931/in/photolist-e2Kp5x-9XtRMH-6XBJf5-k6LzB2-8px4nu-8WVJVi-dKcrUL-pfqYKW-rCEDcw-auiskx-JLb
https://www.flickr.com/photos/jeremy_lee_cassell/16873625037/in/photolist-rH4JRB-9nZm8b-9KA8wd-49bVuG-9KwK1X-cXTCzy-5vEKtP-rp65g-4rSf1N-4v35p
https://www.flickr.com/photos/107600344@N04/10897249415/in/photolist-xc3Ms-qNFcAK-qNFdmx-oB1kyo-hAXfAB-9tRCK1-9tNFdk-9tNF4V-HL1gk-qw7UFY-
https://www.flickr.com/photos/anaroz/2349665024/in/photolist-4zCDxW-a7xMdx-dHPaF7-banL8k-wUgPNf-pESXfF-y1E6iH-8NJojy-9qhFW4-8NFps2-gfB5tQ-aj
https://www.flickr.com/photos/jimandlinds/239872651/in/photolist-expbp2-6hFwL4-w53bj-6hFwLc-aTTRWZ-hs9dYm-6b8sRo-6htsyE-4qnQ8p-ncpMn-iGpwb-8g

APIs as a Venture Capital Model

Editor's Notes

  • #3  API Managers – broadly the evangelists, advocates, product, business development, whathaveyou-people Are in effect, gatekeepers Evaluating and predicting the value they can give, and the future return if their API partners Ryan Sarver Previously: Director of Platform, Twitter Now: VC at Redpoint Ventures
  • #4 You can’t invest if you don’t have capital. You build that capital by having something of value, presented and delivered in the most relevant way
  • #5 Once you’ve determined you have value You start looking to good candidates
  • #6 Units -> a cost-per-call, depending on endpoints Enterprise saas model
  • #10 We’ve directly monetized only a couple dozen of the thousands of applications built