The virus outbreak has grapped the economy and has put the business of every size in a vulnerable spot. To name a few, companies such as Brook Brothers, NPC International, GNC, and Papyrus, among others have already filed for bankruptcy. However, in this pandemic, Stream, an API builder startup, became successful to raise USD 15 Million in Series A Round.
The five-year-old startup provides APIs to build activity and chat feeds for their client’s applications. In the digital era, companies are starting to build their online presence and rolling out applications to engage with their potential consumers. Moreover, in this coronavirus wave, companies are forced to shut down their stores in regards to safety which has encouraged them to roll out their online applications.
Stream’s founder Thierry Schellenbach who started out the company with Tommaso Barbugli conveyed in an interview that they were worried due to the virus hit as their smaller clients were going out of business and afraid if their larger clients back out. He also added that during this pandemic, one of their larger clients went bankrupt which crumbled their sales numbers. In the period of uncertainty, companies in healthcare and education started knocking their door which changed the scenario for the startup.
The company didn’t witness traction just because of their top-notch activity feeds APIs but due to a decision to build a chat API which was taken 10 months ago. Now, companies such as Dubsmash and prominent healthcare website Healthline are Stream’s customers. Furthermore, investors have started taking a peek into the startup too. Today, Stream announced that it has closed a USD 15 Million Series A Round which was led by GGV Capital, Arthur Ventures, 01 Advisors, and Knight. Along with them, GitHub co-founder Tom Preston-Werner and Datadog CEO Olivier Pomel also invested in the company.
Thierry is thankful to GGV who invested in the company without meeting in person. He also gives credits to accelerator program Techstars which helped them to raise money back in 2015. Talking about the current scenario, he states that for “companies trying to raise a seed round, if you don’t have clear references, right now, it’s tough.” Until now, the company has brought up total funding of USD 20.25 Million.
This August month, Video Tech Startup Mux, also a five-year-old company, raised USD 37 Million which is a Y-combinator backed company. Recently, they rolled out a new feature called Delivery Usage API which lets the user break down the delivered minutes with respect to each asset. Moreover, Gong, a sales software startup, raised USD 200 Million yesterday which has raised its valuation to USD 2.2 Billion. Gong’s CEO Amit Bendov said in an interview that the company was not looking for raising money but when investors knocked their doors, he couldn’t turn them down.