Finch Recognized in GGV Capital's API-First Index

Finch's Industry-Leading Employment API Recognized in GGV Capital's API-First Index

Finch is excited to announce that we’ve been included on GGV Capital's API-First Index.

GGV Capital is a global investment firm with $9.2 billion under management. It tracks the activity of VC deals for 120+ private companies to find those with the most promising approaches to API commercialization.

The significance of the API-First Index

GGV’s API-First Index focuses on API-led startups whose primary goal is developing and delivering scalable APIs, so their clients can build better products and services while improving the agility of their development process.

GGV recently expanded the index to include those that have each raised over $50 million in funding.

The index underscores the critical role APIs play in shaping the future of business and technology by highlighting the increasing importance of APIs as drivers of innovation and growth.

“We are going all-in on API companies because they will fundamentally simplify software development. APIs will allow developers to offload lower-value and time-consuming components of application development so they can focus on higher-value work,” states GGV.

Funding trends from the API-First Index

The API-First Index delivers a valuable benchmark for companies that want to keep pace with the rapidly evolving API landscape, and provides insights into emerging API trends to help businesses and investors identify potential partners and investment opportunities.

In 2022, the companies listed on the API-First Index raised approximately $2.1 billion in total funding, a 70% decrease from 2021, but 19% higher than 2020 and 45% higher than 2019.

“2021 was an outlier year for the VC industry broadly, including API-first companies. We believe it’s important to establish that 2021—catalyzed by historically low interest rates and rapid digital adoption spurred by the COVID-19 pandemic—was a once-in-a-decade moment,” said GGV in its 2022 Year in Review.

The context provided around VC activity in 2021 is important. For example, the number of deals in 2022 also decreased, but the average size of deals increased to approximately $60 million—50% higher than deals in 2019 and 2020. It could be that investors are targeting more mature companies and later-stage funding rounds, since these companies require bigger investments to scale their operations.

While the startup ecosystem has continued to see more diminished funding since 2021, the increase from the preceding years is a good sign. VC funding certainly hasn’t dried up and could be poised for a slow rebound as investors focus on making more informed decisions about companies’ potential for revenue growth.

Employment data’s future role in the API space

Finch’s inclusion on the API-First Index demonstrates that the demand for employment data portability will continue to shape the future of the API space.

Employment data includes:

• Employee directory information like name, contact information, date of birth, manager, salary, and start/end date
• Employee income information including hours worked, salary, wages, deductions, and taxes
• Company information such as legal name, address, taxpayer classification, EIN, and banking details

An employment data API like Finch provides secure access to sources of employment data—human resource information systems and payroll systems—with a single integration.

Employment data APIs make it possible for B2B applications across a variety of industries to leverage employment data to fuel innovative products and seamless customer experiences. Here are just some of the ways B2B applications are deploying employment data to change the future of workforce management, business operations, commercial finance, tax, and insurance:

• Performance management—Monitoring employee productivity in real-time and providing feedback and coaching based on performance metrics
• Predictive analytics—Identifying which employees are most likely to leave the company then taking proactive steps to retain them
• Personalized learning and development opportunities—Recommending specific training programs to employees based on performance metrics and career aspirations
• Benefits administration—Automatically enrolling employees in benefits programs based on their payroll data
• Budget forecasting—Forecasting budgets with more accuracy by gaining a better understanding of their labor costs
• Tax compliance—Generating and streamlining reports on taxes, compliance, and other regulatory requirements to ensure compliance with all relevant regulations
• Underwriting and risk assessment—Utilizing up-to-date census and payroll data to actively assess risk, adjust premiums, and determine appropriate rates for insurance coverage
• Claims processing—Verifying claimants’ employment history and status to help prevent fraudulent claims

Employment data APIs will play an increasingly important role in shaping the future of business as companies of every size, shape, and vertical increasingly demand integrated, data-driven experiences from the B2B applications that serve them.

Learn more about Finch

Finch is a universal API for employment data.

We’re singularly positioned to provide you with mission-critical infrastructure for employment data across a wide range of verticals—including read-and-write compatibility with 200+ employment systems covering more than 88% of U.S. employers—and enable data transfers between employers and applications.

With more than five million API calls every day and tens of thousands of employer connections, Finch is the trusted HRIS and payroll API solution for discerning B2B applications. For more details, visit tryfinch.com.