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Summary:

As more companies set up APIs and API management companies jockey for the lead position, 3scale has picked up $4.2 million to keep adding features and customers.

3scale CEO Steve Willmott
photo: 3scale

Boatloads of companies are constructing application-programming interfaces (APIs) to stream their data out to other sites, but developers don’t always have an easy way to secure or monetize these streams. Hence the emergence of API-management companies, which have been making lots of news lately. Now investors are putting $4.2 million behind another one of them, 3scale.

The new funding, which comes from Costanoa Venture Capital and Javelin Venture Partners, brings the total 3scale has raised to $5 million. The company, founded in 2007, will use the new funds to introduce “a whole bunch of product extensions” and add customers internationally, said Steve Willmott, CEO and a co-founder. Customers can already create subscriptions, give and take away access, observe traffic, set up alerts for usage violations, manage payments and use other functions.

The company targets startups releasing their first APIs as well as enterprises looking for full support. 3scale has more than doubled its customer count in the past year, with more than 200 now, including LiveOps, Skype and the U.S. Department of Energy, Willmott said. The API area has seen exponential growth — now there are more than 13,000 through which to pull and push data. Over the next five years, that number is expected to surpass 1 million, according to a 3scale statement.

As application developers get their APIs in place, API-management companies are competing to become known as the go-to sources customers can use to track, control and monetize their APIs. And many of the other players have been making waves in the past weeks.

News surfaced last week about Intel’s acquisition of Mashery. Less than three weeks after API hub MuleSoft said it picked up $37 million in Series E funding, that company on Tuesday said that it is buying ProgrammableWeb, an API directory and news outlet. Also on Tuesday, CA Technologies made news with its purchase of Layer 7 Technologies.

Because more companies are building out these rivers of content, the competition among the API-management providers, which also includes Apigee and Alcatel-Lucent’s open-source apiGrove, should remain lively for a while.

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  1. Steven Willmott Wednesday, April 24, 2013

    Thanks Jordan – been a big news week in the API space – now we have lots of work to do :)!

  2. UXPSystems has been doing this for operators for the last couple years, as part of their product portfolio.

  3. Christophe Primault Wednesday, April 24, 2013

    Congrats to the the 3Scale team for this new milestone. Your time has come to turn a great solution into an amazing business. One more good news coming from the bubbly Barcelona startup scene and from the B2B API management ecosystem. Being an early player in this market, navigating through
    skepticism was already an achievement on its own and raising such an impressive round is only surprise to those who didn´t understand the power of the platform these guys were building. Best of luck to Steven, Guillaume and the rest of the team.
    Christophe
    CloudWork

  4. Good lord, Steve Willmott is handsome!

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