This week Fauna announced that it had just completed a $27 million funding round led by Madrona Venture Group, bringing the total capital raised by Fauna to $57 million. Fauna argues that the recent rise of serverless computing has created high demand for a serverless solution to managing data.
Why this transaction?
The York IE team made this acquisition our Transaction of the Week (TOW) because it highlights the growing trend towards modern API’s that are easily accessible and widely understood by developers. The API market has an expected CAGR of nearly 33% over the next three years, in order to meet this trajectory, API solutions must be able to meet the demand for organizations looking to integrate systems and components with apps and devices. We believe that consistent with the broader trend towards cloud solutions, cloud API’s will further streamline integration into existing softwares. With cloud based API, users are afforded the flexibility to quickly and strategically deploy their resources. This flexibility allows organizations to accelerate their API development cycles. It is worth noting that, in line with a growing market demand, there are a host of nearly 16,000 available API’s with continuously changing software development life cycles (SDLCs). Fortunately for consumers, piggybacking their systems off API’s allow them to quickly adapt to the next change.
Is there really a large enough demand for API driven connectivity across markets? Simply put, yes, if you’ve used any major messaging platform or ride hail app chances are you’ve already made the switch to an API driven application. Companies like Twilio have been successfully using their API network to add reliable capabilities like messaging, voice, and video to applications such as Lyft and Airbnb. The need for API driven solutions that are scalable and easily integrated has been proven, it is now a matter of which solutions will emerge as leaders in this growing market.