January 04, 2012

Are API Calls the New Basis for Company Valuation?


In today's news of Klout's $30-million, Kleiner-led funding round, we saw an incredibly interesting development: the use of API call volume as a proxy for company value. In particular, Klout CEO Joe Fernandez tells TechCrunch that monthly API calls is one of the key metrics the company tracks, and that Klout did 10 billion in December -- a 100x jump during 2011.

TechCrunch says: "API calls are a good indicator of demand for its data because it is the way other services consume Klout’s scores and mash them up with their own services." Look for API call volume to become a key part of how investors value companies—especially those in the early and growth stages.