Saturday , October 23 2021

Nylas receives $ 25 million as the API economy explodes

NylasThe company, which provides email, calendar and contact APIs to developers who want to build their own apps, raised $ 25 million in a Series B financing round. The increase comes after a series of investments across the landscape. The Postman API development platform secured $ 150 million this month on a $ 2 billion valuation and API marketplace. RapidAPI blocked $ 25 million from well-known investors such as the Microsoft M12.

APIs or application programming interfaces allow different pieces of software to "communicate" with each other, so developers can add additional utilities to their apps without having to create functionality and infrastructure from scratch. Building such integrations with email services like Gmail or Outlook.com requires expertise and can be prohibitively time consuming and expensive. If security and data protection guidelines are not adequately taken into account when handling user data, this can lead to serious problems. In addition, many software applications – such as customer relationship management (CRM) software – are likely to require integration with multiple email and calendar providers.

Nylas circumvents these problems by offering software manufacturers an easy way to get APIs from multiple vendors. The company claims to have saved customers 16 months in advance and an average of $ 2 million in development costs in advance.

Nylas, headquartered in San Francisco, can be integrated into the email, calendar and contact APIs of all major providers, including Google (Gmail), Microsoft (Exchange, Outlook and Office 365), Yahoo and AOL. In its seven-year history, Nylas has had top-class customers such as Comcast, Hyundai, Cision, News Corp. and Freshworks and attracted well-known investors such as Slack (through Slack Fund) and former Cisco CEO John Chambers.

Company-centric cloud communication platform Dialpad uses Nylas to enable full creation, reading, updating and deletion (CRUD) of email, calendar and contact information. This enables bidirectional data synchronization between the platform and the Google and Microsoft accounts of the users. For example, dialpad clients can search and synchronize contacts across the entire user base of the company.

Above: Dialpad uses the Nylas API

Already in March, Nylas announced The first acquisition was based in New York June.ai, an email client with AI support that intelligently and autonomously organizes a user's inbox. This acquisition suggests that automation will play an increasingly important role in Nylas' offering.

With June.ai's technology integration, developers are better able to aggregate, analyze and automate communication and create “deep contextual user experiences”, said Gleb Polyakov, CEO and co-founder of Nylas. A typical example of this is the use of Natural Language Processing (NLP) to process and analyze large amounts of data that have been analyzed from emails, calendars and contacts, and to convert unstructured data into something more usable.

"Another example is sentiment analysis, in which developers can evaluate and aggregate customer sentiment based on their customers' communication data and visualize it on an organizational and individual level," said Polyakov. "Continue with Discovery of named entitiesDevelopers can highlight keywords and phrases and create UI components that enable one-click workflows. "

Nylas had previously raised $ 30 million and plans to scale up its sales and marketing efforts with another $ 25 million in the bank. The company also plans to double its workforce next year – across hubs in San Francisco, New York and Denver – and build an engineering team in Toronto, Canada.

The Nylas Series B round was co-led by 8VC and Round13 with the participation of Slack Fund, Spark Capital, ScaleUp and Citi Ventures.

Above: Nleba's CEO Gleb Polyakov

The API economy

APIs are a significant part of the digital economy, with some notable deals in recent years. Visa recently spent $ 5.3 billion for Plaid, which develops APIs for financial services, while Salesforce acquired API management giant Mulesoft last year for a whopping $ 6.5 billion. Already in 2016, Google acquired the API management provider Apigee for $ 625 million, followed shortly afterwards by Oracle, which took up the API development startup Apiary for an undisclosed amount.

API demand can be traced back to a number of developments, including the introduction of cloud computing and the move from a more monolithic architecture to microservices. Over and Netflix are good examples of companies that made that transition. Designing an app as a tight-knit unit makes it more difficult to optimize and update certain features without risking downtime or damaging the entire app. For this reason, many technology companies prefer to split the app into smaller parts.

However, APIs also benefit from the fact that more companies have been “software-defined,” Polyakov said. In other words, every company is now pretty much a software company, which means that more software developers are joining the workforce – many of them lack the skills to develop the functions that are important for modern applications.

“Talent in software development was scarce and a limiting factor for the growth of companies. However, this is changing as more and more software developers join the workforce. Many of them are generalists who work with abstract high-level languages ​​like Python and Go, ”Polyakov told VentureBeat. "Many of these market participants do not have an M.S. Degrees from MIT and are trained in coding boot camps or through online training. They have extensive functions, but do not have extensive expertise to build up important functions, e.g. For example, the ability to accept online payments or send an email from your application. These functions are at stake and are conceptually simple, but technically difficult to implement. "

This is where the humble API comes in, which connects different microservice components and enables companies to use the domain know-how of any number of third-party API companies, e.g. B. Stripe, which allows businesses to accept payments, and Twilio, which makes it easier to embed SMS, voice, video, messaging, and email services in proprietary apps.

"Developers come to companies like Nylas, Stripe and Twilio to get ready-to-use solutions that can bring applications and features to market in a fraction of the time and cost of internal development," continued Polyakov. "We see the API area as a supply chain for modern software development."

Twilio flew up since the COVID 19 crisis, the world has been forced to stand still. Increased demand for access to communication APIs from industries ranging from telemedicine to education has led to an all-time high of $ 212 – more than 1,000% above the IPO price in 2016. Nylas also posted a strong during the pandemic Surge in demand. According to Polyakov, website traffic doubled between March and May and "record months in terms of new customer acquisition".

"Communication is an essential service, especially in times of crisis, and the demand for productivity solutions has skyrocketed as companies have switched to remote operations," he said. “We can look at Twilio's earnings reports and zoom as evidence of this trend. Nylas offers a critical infrastructure to many companies that meet the critical requirements of their market in this challenging time. "

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About Nancie Clifford

Nancie Clifford is a housewife and loves technology. He writes on various websites.

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