API management platform Rapid is the latest tech company to undergo significant layoffs, reportedly reducing its headcount by nearly 82% earlier this month.
The startup reached a $1B valuation after raising $150M of Series D funding in March 2022. However, the company is reportedly now looking to sell itself for significantly less. Toughening market conditions have put pressure on high-valued unicorns, forcing valuations to contract and driving investors away from late-stage rounds.
Rapid’s troubles could be a sign of things to come for other highly-valued companies in the API management space.
We dig into the API management market and assess how much trouble other unicorns might be in, using CB Insights data to look at:
- Valuations
- Headcount
- Revenue per employee
Valuations
There are a handful of $1B+ unicorns in the API management space. Postman is the most highly valued startup in the market, worth more than 5x its closest top-valued peers.
