The-API-as-a-marketplace-Version-One #

The API-as-a-marketplace - Version One #

Created: May 28, 2020 10:17 AM URL: https://versionone.vc/api-as-a-marketplace/ As we’ve been spending time on B2B marketplaces and dev tools/platforms, we’ve come to realize that there’s an interesting sub-category that combines elements of both: the API-as-a-marketplace. Here are two examples from e-commerce use cases – both are V1 portfolio companies:

• Shippo: developers can use this API to connect businesses to shipping carriers
• Patch: developers can use this API to connect businesses to carbon offset providers Note that we aren’t talking about API marketplaces here. API marketplaces (like RapidAPI) are traditional marketplaces that allow API providers to publish their APIs for developers to discover them. An API-as-a-marketplace is more of a dev tool that connects pools of suppliers and buyers and uses an API to connect the two sides. Choice, defensibility and simplicity** APIs are the building blocks of today’s digital world: developers use them to quickly integrate features, data, services and functions into their own apps, removing the need to build and scale all those elements from scratch themselves. For example, on Shippo, businesses may want to optimize the carrier (supplier) based on price, visibility on tracking, etc.. On Patch, businesses can choose a carbon offset provider based on the type of project (e.g. forestry) that most aligns with their business ethos. ** A data marketplace, which is an online store where people can buy data, is not necessarily an API-as-a-marketplace.