In A Nod To Marc Andreessen's Prophecies, Apigee Raises $60M

Apr 29 2014, 4:42am CDT | by

Marc Andreessen , legendary entrepreneur and now venture capitalist at the firm he co-founded, Andreessen Horowitz, famously opined a few years ago in the Wall Street Journal that software is eating the world. It was an emotive title for an OpEd but essentially the point Andreessen made was that at every turn organizations are using software to deliver services – from Netflix disrupting Blockbuster to Google’s self-driving cars, software is fundamentally changing the way we live.

But as I wrote in a recent whitepaper (disclosure, the whitepaper was a paid consulting job), software may be eating the world but APIs are giving it teeth. APIs (or Application Programming Interfaces) are the glue that connects different applications, connected devices and data sources generally. None of the disruption that Andreesen wrote about could have occurred without APIs.

So there exists a big opportunity for vendors to help organizations get control of their API program – to work out how APIs fit into what they do, to manage the creation and control of individual APIs and to gain some insights from all that data traversing said APIs. One of the better known vendors in the space is Apigee , a company I’ve covered many times in the best, most recently about their new big data analytics offering .

While Apigee was originally a pure play API management vendor, it now articulates what it does as delivering API management and big data offerings. What’s in a name huh? Either way, this new focus seems to have gotten the attention of investors, since Apigee is today announcing a new $60M funding round

Alongside all the existing Apigee investors, Pine River Capital Management  and Wellington Management Company  came on board with this round which takes the company’s total funding to a heady $171M. For anyone outside the space this could seem like an insane amount of cash (and, truth be told, it kind of is) but if Andreessen’s prophecies are to eventuate, and the entire internet of things comes to bear, the glue tying all those myriad of inputs together becomes an incredibly important part of the puzzle. API management might sound kind of boring, but it’s as critical to the success of the new world in the same way that electricity lines and steam plants where during the industrial revolution.

More broadly, Apigee recent forays beyond simply API management are interesting, especially in light of a post I wrote a few months ago that looked at the convergence that I’m seeing across the API management, application integration and Single Sign-On spaces. This $60M of funding isn’t just going to a company that provides glue – glue undoubtedly has value, but it’s gaining insights from being that glue that really starts to get exciting. These investors see Apigee as a vendor that can unlock immense related value for its customers, and in doing so deliver a massive result for its investors. I put this view to CEO Chet Kapoor who largely agreed but did say that he sees a broader trend of:

…two technologies coming together – predictive analytics and APIs. Recent developments have been a continuation of our journey to date. These solutions belong together, the question is how long other vendors take to bring them together…

Clearly there are some large traditional vendors who don’t, as yet, have a compelling answer to the API management/big data insights space. Whether Apigee’s mid term prospects are an IPO, or a trade sale directly, there are some well cashed up legacy vendors who would be prime suspects to acquire them – and the sort of value this platform brings justifies the kind of multiple the Apigee investors will be expecting.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Your Parent Or Kid Moved In: Are You Covered?
A record 57 million Americans now live in multigenerational family households — double the number in 1980, according to a new Pew Research Center study. And I bet many of them have the wrong homeowner’s or renters...
 
 
Pandora Looks to Challenge Terrestrial Radio's Dominance in Cars
Pandora Media is one of the largest Internet radio providers in the U.S. with more than 75 million active users. While the company’s active user count has increased at a robust pace historically, it is likely to slow...
 
 
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
It’s January 2026. New York Yankees owner Hal Steinbrenner gets out of his driverless car and triumphantly marches before the gathered press to introduce his prized new free agent. It’s a record-breaking contract—over...
 
 
Volkswagen AG New Coverage: Trefis Price Estimate at $51
Volkswagen AG is the second largest automaker in the world behind Toyota and slightly ahead of GM, selling 9.72 million vehicles globally in 2013. Established in 1937, Volkswagen AG, along with its 340 subsidiary...
 
 
 

Latest from the Network

Kutcher-Kunis to wed in July next year?
Los Angeles, July 29 (IANS) Actors Ashton Kutcher and Mila Kunis, who are getting ready to welcome their daughter, have begun to plan for their wedding. "The wedding will be next July. They want to focus on their...
Read more on Celebrity Balla
 
Lady Gaga portraits auctioned
New York, July 29 (IANS) Pop star Lady Gaga's "video portraits" raised over $1 million at an auction at Watermill Center here. Director Robert Wilson put on display "23 Video Portraits of Lady Gaga" series at his...
Read more on Celebrity Balla
 
Kim Kardashian followed by 'crazy driver'
Kim Kardashian claims a ''crazy driver'' followed her around Los Angeles today (07.28.14). The 'Keeping Up with the Kardashians' star hit back at rumors she was pulled over by police officers in Calabasas, California,...
Read more on Celebrity Balla
 
Elizabeth Banks is 'very genetically blessed'
Elizabeth Banks says she is ''very genetically blessed.'' The 'Hunger Games' actress, who has sons Felix, three, and Magnus, 20 months, with husband Max Handleman, insists she only recently realized she is attractive,...
Read more on Celebrity Balla
 
Courteney Cox receives engagement gifts
Johnny McDaid and Courteney Cox received several engagement presents in his native Northern Ireland. The newly-engaged couple were given complimentary souvenirs by excited fans in the city of Derry while exploring the...
Read more on Celebrity Balla
 
Ashton Kutcher and Mila Kunis to wed next July
Ashton Kutcher and Mila Kunis are planning to get married next July. The couple, who got engaged earlier this year and are expecting their first child, have reportedly set a date for their wedding next summer, as they...
Read more on Celebrity Balla
 
India at the 2014 Commonwealth Games Tuesday
Glasgow, July 29 (IANS) The following is the list of Indians who will be seen in action in the 2014 Commonwealth Games Tuesday. Schedule Badminton (Emirates Arena) Men's singles (Round of 64): R.M.V.Gurusaidutt vs...
Read more on Sport Balla
 
Indian medal winners at 2014 Commonwealth Games
Glasgow, July 29 (IANS) The following is the list of Indian medal winners at the 20th Commonwealth Games: Gold Sanjita Khumukchan: women's 48 kg weightlifting Sukhen Dey: men's 56 kg weightlifting Abhinav Bindra: men'...
Read more on Sport Balla
 
Hi-tech machine spews beer for fans mimicking Scot talk (CWG Diary)
Glasgow, July 29 (IANS) Fancy a free beer? Get talking in Scottish! A hi-tech water cooler that talks to visitors and dispenses beer is doing the rounds of the city assessing one's accent and rewarding the best with a...
Read more on Sport Balla