API Startups
Tags: digitalidentity, integration
Published: 2022-06-29 08:56:10

---
title: API Startups
published: true
date: 2022-05-24 14:59:18 UTC
tags: DigitalIdentity,Integration
canonical_url: https://vyou-app.com/en/api-startups/
---

During 2021, few relevant tech media outlets as [TechCrunch](https://techcrunch.com/2020/05/22/api-startups-are-so-hot-right-now/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAKRCIGQQAdOLbe0p_XhoDC_CEWdTTKzvQuUGWQcpiv-Xc6Ip14bM61P6HNT1TTuF-T4igCsO3gEDUEJEdIBgdI7J2zxPcoCtSH72KMFxPAtTAcvFkpXxQhZKOsjbUCsVOxNucahilcwYkFw4J2mH90XDX2Mfi_YM0WwkSCzmYfDK) noticed that API-based startups were the new thing.

Today we’re taking a peek at this trend and see what are the odds for some companies to grow.

## **What’s an API-based startup?**

An API-focused startup is a high-growth company that delivers its main service via an application programming interface, or API.

APIs help services communicate with other apps, allowing them to execute tasks or request information quickly and easily. These services are sometimes highly valuable because they can offer something complex and difficult, easily and simply.

API-based startups are expanding their communication system by scaling some aspects of the business quickly and cost-effectively. They enable you to add features like Authentication, Notifications, Chat, Payments, etc. to your product while using a global network and fully compliant practices. 

Well known companies like Airbnb or Uber, use APIs to create two-step verifications that authenticate sign-ins and enable chatbots, conversations, delivery status tracking and much[more](https://developer.vonage.com/).

## **API-based model benefits**

### 1. Focusing on business

Early-stage startups are usually fully concentrated on fundraising, hiring team members, building out operations, ensuring product-market fit, building go-to-market strategies, among others.

Startups should spend most of their time on building a unique value proposition, so by implementing APIs they are able to easily include additional functionality and test their product with their customers instead of starting from scratch and wasting time, resources and money. 

### 2. Saving money (and time!) 

One of the major struggles for most early-stage startups is how to effectively manage the financial resources and time in order to avoid running out of money before the [proper kick-off](https://www.vestbee.com/blog/articles/5-tips-on-how-to-kick-off-your-startup-and-attract-investors) or scaling. APIs have advanced features and at the same time are a cheaper and more flexible option for early-stage startups willing to build their infrastructure.

### 3. Testing out MVP (Minimum Viable Product) 

In order to generate exceptional customer experience, startups need to test out the product with potential customers and make them satisfied in order to increase retention and profits and decrease churn. In order to understand how APIs like VYou can transform the user experience, let’s see an insurance company app functioning as an example.

Banks, insurers, advisors and exchanges optimize for security. Financial information is among the most sensitive data and customers expect you to treat it as such – risk of breach is not an option.

Let go of manual processes, from initial onboarding to ongoing loyalty, VYou helps financial institutions of any size become digital-first.

- Making their system secure
- Offering identity verification
- Implementing Single Sign-On
- Introducing encryption
- Delegating authority to ensure all users are who they say they are and that they only have access to authorized areas of their services
- Complying with various financial and privacy regulations and standards

### 4. Scaling the product

For some startups, they kick off when they already have a few users testing their MVP (Minimum Viable Product) and, ideally, when they are close to achieving product-market fit by satisfying strong market demand. Along with the product adoption growth, the application still needs to manage increasingly more in-app verifications and additional scheduling messages. A huge benefit of APIs is that with the same ease you can communicate with 1 customer or 10.000 customers, with almost no changes in the technology implementation. Moreover, when the product adoption increases, economies of scale will be achieved.

### 5. Integrate fast and easily

Startups should be able to act with great speed and efficiency, no matter if it’s about implementing an additional feature or hiring new team members. Various product interactions and constant feedback from users are the bread and butter of an effective startup functioning. APIs can help test and remove channels easily and without any consequences until you find the right mix of possible ways to interact with your customers. All things considered, APIs help a startup build scalable products fast and easily, save time and money, ensure a great customer experience, and at the same time, focus on business development.

## **VYou for Startups**

[VYou](https://vyou-app.com) aims to help startups to boost productivity and improve connectivity which significantly influences customer experience and increases customer satisfaction along with service quality. [VYou](https://vyou-app.com) has been built with all the necessary pieces that allow startups not to worry about user management and test the MVP right away.