In computer science jargon, the “software stack” is software that sits on top of a system’s core kernel (or operating system). The stack gives a feature set to the operating system, expands it function and makes it sing. The more layers a developer adds to the stack, the more enriching the experience and usability of the platform.
Not too long ago, developers had few external tools available to help them build out their product. Want a messaging feature? Build it yourself. Today, the world has changed dramatically. There are now software companies that offer programming teams the ability to skip building a feature set internally and instead just hook into an external platform to customize what you want. This mindset change is one of the most exciting things we at Promus Ventures believe is happening in the software industry today.
As technology continues to reinvent everything, we are quite long this “building blocks” thesis and are investing in teams who focus on a certain customer application layer of the stack and build out a deep feature set for any company to use.
Layer is a prime example of a building blocks company.
Layer enables developers to build their own messaging and communication features into their products so that they own the data that flows through their own product. Instead of having to hire a back-end team to code SMS, photo, voice, video, or video messaging, dev teams can use Layer’s APIs and SDKs to power their existing front-end, or even plug into their existing UI customizable components. There are now more than 10,000 companies currently using Layer’s code to build out their messaging features.
Layer has recently partnered with Mapbox to bring these tools to logistics companies. Mapbox enables developers to insert maps and location data into their stack. One should view Stripe (building blocks for payments) as well as Dispatch (building blocks for on-demand services) — in the same building blocks club.
Further, Layer today has announced the Layer Fund, which invests in fast-growing startups through AngelList utilizing Layer’s messaging products. I expect to see more “platform funds” emerge from other building blocks companies to give yet another reason for startups to use these products and integrate in their communities.
It is mind-blowing that developers today can utilize third-party APIs, SDKs and web and mobile clients to help scale their business and efficiently manage costs. It seems almost silly that startups wouldn’t leverage what these powerful building blocks companies offer. The goal is to own your data and build meaningful analyses and dashboards for your customers, not ship your proprietary data off to someone else’s platform for them to mold and fashion as they wish.
It was never fun as a kid not to be able to reach that cookie jar on the top shelf. A new breed of startups have emerged to bring these cookies down off the shelf so everyone can get their fingers in the jar. Enjoy the goodies.
Recipients of this post are not to construe it as investment, legal, or tax advice, and it is not intended to provide the basis for any evaluation of an investment in any fund. Prospective investors should consult with their own legal, investment, tax, accounting, and other advisors to determine the potential benefits, burdens, and risks associated with making an investment in any fund.
