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Salt Security closes $20M Series A to help protect APIs

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Salt Security closes $20M Series A to help protect APIs

Today Salt Security, a startup that helps firms defend APIs, introduced that it has closed a $20 million Series A. The Palo Alto-based firm secured the brand new funds from Tenaya Capital, bringing its complete capital raised to round $30 million.

The Salt spherical caught TechCrunch’s eye because it suits fairly properly right into a rising development of API-powered and centered startups elevating capital in current months. On the again of Plaid’s epic exit, and the continued success of Twilio, APIs seem like a profitable manner for startups to construct engaging income tallies that entice each traders and acquirers alike.

Notably Salt Security provides its API safety service — the startup helps prospects defend in opposition to API “assaults,” and discover API-related “vulnerabilities,” per its web site — as a SaaS utility; the corporate did inform TechCrunch that it will possibly additionally “combine by way of API with different options in a buyer’s surroundings,” for what it’s price. Regardless, as Salt is a startup centered on the API financial system, we needed to notice its funding occasion.

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To get a deal with on how the corporate managed to lift throughout a purportedly tough time to draw new capital, TechCrunch dug in a little bit bit. Read on for progress notes, and a few particulars on whether or not extra startups are utilizing APIs to energy their companies.

Growth

The quick reply relating to how Salt managed to safe capital is progress, so far as TechCrunch can surmise: According to the agency, Salt “nearly doubled [its] income within the first half of 2020 from the top of 2019 regardless of COVID-19 along with retaining our current prospects.” As the agency simply raised a Series A, its 2019 end-of-year income tally probably wasn’t enormous, however the firm’s tempo of topline growth is exactly what non-public traders prefer to guess on.

API startups are so sizzling proper now

Even higher, Salt shared with TechCrunch that its gross margins have “considerably improved to over 90%” in response to a query relating to modifications within the startup’s gross margin profile during the last 18 months. Salt additionally cited sharp demand for its product from bigger firms in its notes to this publication.

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But it’s smaller firms that we’re extra concerned with, given our API startup focus. TechCrunch requested Salt whether it is seeing API-powered enterprise fashions rising in popularity amongst rising tech firms. Via electronic mail, the startup stated that it has “seen a rise in the usage of third social gathering APIs and extra firms are opening new APIs for companions to share knowledge” and that APIs are “undoubtedly a rising enterprise mannequin not just for startups but in addition for established firms seeking to innovate and develop their enterprise.”

Good to know that we weren’t out to lunch once we famous the development.

Wrapping, whereas researching Salt for this put up TechCrunch seen that the corporate’s web site particulars an all-male management group. We raised the matter to the startup, which responded saying that “range and inclusion are core to [its] tradition,” and that it views the matter as “vital to a wholesome, productive, inventive and rising group.” Salt additionally stated that it has “plans to double in measurement by the top of yr and it will create many alternatives for rising range inside our executives and throughout our complete group.” We’ll take a peek on the identical metric the following time we discuss to the corporate.

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