Personal blog of Yzmir Ramirez

APIs are the grease turning the gears and wheels for many organizations’ IT systems today, but as APIs grow in number and use, tracking how they work (or don’t work) together can become complex and potentially critical if something goes awry. Now, a startup that has built an innovative way to help with this is announcing some funding after getting traction with big enterprises adopting its approach.

Tyk, which has built a way for users to access and manage multiple internal enterprise APIs through a universal interface by way of GraphQL, has picked up $35 million, an investment that it will be using both for hiring and to continue enhancing and expanding the tools that it provides to users. Tyk has coined a term describing its approach to managing APIs and the data they produce — “universal data graph” — and today its tools are being used to manage APIs by some 10,000 businesses, including large enterprises like Starbucks, Societe Generale and Domino’s.

Scottish Equity Partners led the round, with participation also from MMC Ventures — its sole previous investor from a round in 2019 after boostrapping for its first five years. The startup is based out of London but works in a very distributed way — one of the co-founders is living in New Zealand currently — and it will be hiring and growing based on that principle, too. It has raised just over $40 million to date.

Tyk (pronounced like “tyke”, meaning small/lively child) got its start as an open source side project first for co-founder Martin Buhr, who is now the company’s CEO, while he was working elsewhere, as a “load testing thing,” in his words.

The shifts in IT toward service-oriented architectures, and building and using APIs to connect internal apps, led him to rethink the code and consider how it could be used to control APIs. Added to that was the fact that as far as Buhr could see, the API management platforms that were in the market at the time — some of the big names today include Kong, Apigee (now a part of Google), 3scale (now a part of RedHat and thus IBM), MuleSoft (now a part of Salesforce) — were not as flexible as his needs were. “So I built my own,” he said.

It was built as an open source tool, and some engineers at other companies started to use it. As it got more attention, some of the bigger companies interested in using it started to ask why he wasn’t charging for anything — a sure sign as any that there was probably a business to be built here, and more credibility to come if he charged for it.

“So we made the gateway open source, and the management part went into a licensing model,” he said. And Tyk was born as a startup co-founded with James Hirst, who is now the COO, who worked with Buhr at a digital agency some years before.

The key motivation behind building Tyk has stayed as its unique selling point for customers working in increasingly complex environments.

“What sparked interest in Tyk was that companies were unhappy with API management as it exists today,” Buhr noted, citing architectures using multiple clouds and multiple containers, creating more complexity that needed better management. “It was just the right time when containerization, Kubernetes and microservices were on the rise… The way we approach the multi-data and multi-vendor cloud model is super flexible and resilient to partitions, in a way that others have not been able to do.”

“You engage developers and deliver real value and it’s up to them to make the choice,” added Hirst. “We are responding to a clear shift in the market.”

One of the next frontiers that Tyk will tackle will be what happens within the management layer, specifically when there are potential conflicts with APIs.

“When a team using a microservice makes a breaking change, we want to bring that up and report that to the system,” Buhr said. “The plan is to flag the issue and test against it, and be able to say that a schema won’t work, and to identify why.”

Even before that is rolled out, though, Tyk’s customer list and its growth speak to a business on the cusp of a lot more.

“Martin and James have built a world-class team and the addition of this new capital will enable Tyk to accelerate the growth of its API management platform, particularly around the GraphQL focused Universal Data Graph product that launched earlier this year,” said Martin Brennan, a director at SEP, in a statement. “We are pleased to be supporting the team to achieve their global ambitions.”

Keith Davidson, a partner at SEP, is joining the Tyk board as a non-executive director with this round.

Unlike some of its competitors, Google Cloud has recently started emphasizing how its large lineup of different services can be combined to solve common business problems. Instead of trying to sell individual services, Google is focusing on solutions and the latest effort here is what it calls its Business Application Platform, which combines the API management capabilities of Apigee with the no-code application development platform of AppSheet, which Google acquired earlier this year.

As part of this process, Google is also launching a number of new features for both services today. The company is launching the beta of a new API Gateway, built on top of the open-source Envoy project, for example. This is a fully managed service that is meant to make it easier for developers to secure and manage their API across Google’s cloud computing services and serverless offerings like Cloud Functions and Cloud Run. The new gateway, which has been in alpha for a while now, offers all the standard features you’d expect, including authentication, key validation and rate limiting.

As for its low-code service AppSheet, the Google Cloud team is now making it easier to bring in data from third-party applications thanks to the general availability to Apigee as a data source for the service. AppSheet already supported standard sources like MySQL, Salesforce and G Suite, but this new feature adds a lot of flexibility to the service.

With more data comes more complexity, so AppSheet is also launching new tools for automating processes inside the service today, thanks to the early access launch of AppSheet Automation. Like the rest of AppSheet, the promise here is that developers won’t have to write any code. Instead, AppSheet Automation provides a visual interface, that, according to Google, “provides contextual suggestions based on natural language inputs.” 

“We are confident the new category of business application platforms will help empower both technical and line of business developers with the core ability to create and extend applications, build and automate workflows, and connect and modernize applications,” Google notes in today’s announcement. And indeed, this looks like a smart way to combine the no-code environment of AppSheet with the power of Apigee .

API platform Kong, which you may remember under its previous name of Mashape, is launching its new Kong Cloud service today. Kong Cloud is the company’s fully managed platform for securing, connecting and orchestrating APIs. Enterprises can deploy it to virtually any major cloud platform, including AWS, Azure and Google Cloud, and Kong will handle all of the daily drudgery of managing it for them.

At the core of Kong Cloud is Kong, the company’s open source microservices gateway. The company already offers an enterprise version of Kong under the Kong Enterprise brand, but it’s up to enterprises to manage this version by themselves.

“Customers running Kong Enterprise on-prem and self-managed are often running it multi cloud. They are running it from  AWS, to Azure, Google Cloud, Pivotal Cloud Foundry or bare metal. It’s all over the place,” Kong co-founder, president and CEO Augusto Marietti told me. “But not all of them have massive engineering organizations, so Kong multi-cloud is our managed version of Kong as a service that can run on any cloud.”

With Kong Cloud, the company monitors and manages the service, giving enterprises an end-to-end API platform and developer portal. The company handles updates and all the other operational tasks. In terms of the overall functionality (think governance, security features etc.), this is essentially Kong Enterprise. Indeed, Marietti stressed that the two are meant to be one-to-one compatible, in part because he expects that some companies will use both versions, depending on their teams’ needs.

Marietti told me that Kong now has more than 85 employees and more than 100 enterprise customers. These include the likes of Zillow, Soulcycle and Expedia. Year-over-year, the company tells me, its bookings have grown 9x and the Kong open-source tool has now been downloaded more than 54 million times.

The company rebranded as Kong in October 2017, in part to signify that its ongoing focus would be on microservices in the enterprise and the Kong tool, which it open sourced in 2015. Ahead of its rebranding exercise, Mashape/Kong sold off its API marketplace to RapidAPI. The marketplace was the company’s first product — and Kong was in part developed to support it — but in the end, the company decided that its focus was going to be on Kong itself. That move seems to be paying off now, as enterprises are moving to adopt microservices and often need partners to do so.

 Oracle acquired API management startup Apiary today for an undisclosed amount. Apiary, which launched in 2011 and has raised a modest $8.5 million, helps companies manage APIs, which is an increasingly important job. As every company becomes a software company, they are building platforms and providing ways for customers and third-parties to build applications using their technologies.… Read More