Pipedream raises $20 million to connect different apps – businesstraverse.com

Software integrations can be challenging. While serverless Function-as-a-Service (FaaS) products such as AWS Lambda, Google Cloud Functions, and CloudFlare Workers can reduce complexity, they are not always suitable for developers who want to implement and run integrations with other software apps. Just ask the team at BrightRoll, the programmatic video advertising platform acquired by Yahoo! (full disclosure: businesstraverse.com’s parent company) in 2014, which had 176 unique data pipelines to manage various app integrations.

Frustrated with the process, Tod Sacerdoti, who co-founded BrightRoll before working as an investor at Flux Capital, worked with seven former BrightRoll employees in product and engineering positions to pipe dream, an integration platform for building workflows and connecting cloud services. Pipedream allows customers to create workflows with open source connectors to APIs and extensions coded in Node.js, Python, Go or Bash for custom logic.

Investors supported the idea. Pipedream announced today that it has raised $20 million in a funding round led by True Ventures, with participation from CRV, Felicis Ventures and the World Innovation Lab. Sacerdoti says the proceeds will be spent on further developing Pipedream’s product, expanding the number of apps on the platform and building a go-to-market team.

pipe dream

Pipedream’s app integration interface. Image Credits: pipe dream

“When BrightRoll was acquired, there was an internal team of ten employees, called the ‘product hackers’, who were responsible for… [app] integrations… While the business value of the team was tremendous, it took huge resources to build and manage the integrations. We felt there had to be a better way,” Sacerdoti told businesstraverse.com in an email interview. “When we interviewed our first 30 potential customers, one of them said, ‘This would be so valuable if it existed, but it’s impossible. to build. It’s a dream.” Hence our name.”

Founded in 2019, Pipedream is akin to workflow automation platforms such as Zapier, Integromat, Workato, and MuleSoft – albeit more developer-oriented. Any user, customer, or partner can add an integration to the close-source portion of the platform, while developers can add proprietary or internal integrations not intended to be shared with the larger Pipedream community. For example, Sacerdoti says many customers use Pipedream to interact with existing AI platforms and build integrations to leverage AI models such as OpenAI’s GPT-3 or a cloud-service AI product from Google, Microsoft, or AWS.

Starting today, marking the general release of the latest version of the Pipedream platform, customers will get data stores to store and retrieve data about steps and workflows, and support for single sign-on.

“A huge percentage of the software engineering that’s done today is integrating APIs, also known as ‘glue code,'” Sacerdoti said. “Data engineering teams are understaffed almost everywhere, and technical leadership wants those teams to work on the most valuable areas of the business that only they can work on. Integrations rarely meet this bar and as a result, integrations are often not prioritized. As enterprises look for automation and efficiency, integrations are one of the most impactful and profitable endeavors they can make.”

Pipedream has a number of competitors in the workflow automation space, mainly Zapier and the FaaS products mentioned earlier. Newer players include n8n, which provides users with a framework to synchronize data and workflows, and Merge, which helps users build customer-centric integrations with third-party tools.

But Pipedream’s business is thriving nonetheless. Sacerdoti claims the company has more than 100 customers, including Checkr and Scale AI, and more than 600 developers sign up every day. Sacerdoti attributes some of the growth to the number of triggers and actions on Pipedream’s platform (thousands), which he says positions the platform well against rivals.

pipe dream

Image Credits: pipe dream

It’s no coincidence that Pipedream’s success is due to an explosive growth in the use of APIs and software-as-a-service (SaaS) apps. According to a recent questionnaire of RapidAPI, 61.6% of developers trusted APIs more in 2021 than in 2020. And Statista found it that organizations worldwide were using an average of 110 SaaS apps by 2021. That’s a lot of apps to connect to, and developers tend to prefer API-forward approaches à la Pipedream’s because of their simplicity.

“With Pipedream, a single technical user can produce and maintain the same level of integrations as a team of ten previously. In addition, the integrations can be teamed up and hosted/run in the cloud, allowing larger teams to work even more efficiently,” said Sacerdoti.

To date, Pipedream has raised $22 million with 15 employees.