API3

API3 is a technology company.

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Updated: Dec 9, 2025 ·

Recent News & Mentions

Nov 1, 2020FundingAPI3 - Seed

Financial History

API3 has raised $3.0M across 1 funding round. Most recently, it raised $3.0M Seed in November 2020.

Total Raised

$3.0M

Valuation

N/A

Funding Rounds Raised

Date	Round	Lead Investors	Other Investors
Nov 1, 2020	$3.0M Seed		01 Ventures, 305 Ventures, Activant Capital, Ambridge Capital, Andreessen Horowitz, Angel investor, Archetype, Ballistic Ventures, Blisce, Bombas, Bond, Bow Capital, Builders VC, Caffeinated Capital, Chapter One Ventures, Coatue, CoinFund, Compound, CP Ventures, Craft Ventures, CRV, Dispersion Capital, Dreamers VC, Electric Capital, E-Merge, Formic Ventures, Foundation Capital, Founders Fund, Foundry Group, General Atlantic, Graph Ventures, Griffin Gaming Partners, Helium-3 Ventures, Long Ventures Partners, North Island Ventures, Oak HC/FT, One Way Ventures, Paradigm, Pario Ventures, Placeholder, Reform Ventures, Roosh Ventures, Sequoia Capital, Soma Capital, Sound Ventures, Streamlined Ventures, Team Ignite Ventures, The Hit Forge, Thirty Five Ventures, Tribe Capital, Union Square Ventures, UpHonest Capital, Wave Financial, WestCap, Yes VC, Aaron VanDevender, Andre Iguodala, Andrus Purde, Balaji Srinivasan, Bill Tai, Evan Lee, Indrek Kasela, Jeff Morris, Khaled Helioui, Mark Pincus, Martin Villig, Märt Kelder, Matt Bellamy, Preetha Parthasarathy, Rashaun Williams, Russell Cook, Ryan Duranso, Sung ho Choi, William Mougayar

Financial History

API3 has raised $3.0M across 1 funding round.

Total Raised

$3.0M

Valuation

N/A

Deep Dive

High-Level Overview

API3 is a blockchain technology company that builds decentralized oracle services, enabling secure and transparent data feeds for Web3 applications, particularly in decentralized finance (DeFi).[1][2][4] It offers products like dAPIs (decentralized APIs), Airnode oracle technology, quantum random number generation, and on-demand Web3 APIs, serving developers and data providers by bridging off-chain data to on-chain smart contracts without third-party intermediaries.[1][2][3] API3 solves the oracle problem—ensuring reliable, tamper-proof external data access for dApps—while introducing innovative OEV Rewards, paying DeFi projects for using its feeds to capture Oracle Extractable Value (OEV).[4] Founded in 2020 and headquartered in George Town, Cayman Islands, API3 has raised funding including a Series A-II round and shows growth through partnerships like SOSV and adoption by lending protocols.[1][2]

Origin Story

API3 emerged in 2020 amid the rise of DeFi, founded to address vulnerabilities in legacy third-party oracle networks like those reliant on centralized intermediaries.[1][3] The core team, operating through the API3 Foundation and Alliance, pivoted from traditional oracles to first-party oracle solutions, where data providers run nodes directly via Airnode, enhancing security and transparency.[2][3] Early traction came from securing $4 million in funding and building momentum in the blockchain infrastructure space, with pivotal moments including the launch of dAPIs and OEV Rewards, which incentivize usage and position API3 as a leader in oracle evolution.[1][3][4] Backed by investors like SOSV, API3 quickly integrated with global API providers, gaining foothold in DeFi use cases such as financial derivatives and prediction markets.[2]

Core Differentiators

API3 stands out in the crowded oracle market through these key strengths:

First-party oracles via Airnode: Unlike third-party networks, API3 lets data providers operate their own nodes, delivering superior security, efficiency, regulatory compliance, and simplicity without middlemen.[2][3]
dAPIs and data aggregation: Provides aggregated feeds from first-party oracles run by mainstream API providers, ensuring high-quality, decentralized data for dApps.[1]
OEV Rewards model: Uniquely pays DeFi projects (e.g., lending protocols) for using feeds, capturing and redistributing Oracle Extractable Value to users.[4]
Developer-friendly infrastructure: Supports quantum random number generation, on-demand Web3 APIs, and easy integration for next-gen use cases like synthetic assets and insurance.[1][2]

These features outperform competitors like Band Protocol by emphasizing transparency and direct provider involvement.[1]

Role in the Broader Tech Landscape

API3 rides the Web3 and DeFi expansion trend, where reliable oracles are critical for scaling blockchain applications beyond silos, enabling $trillions in locked value through secure off-chain data access.[1][2] Timing is ideal post-2020 DeFi boom, as market forces like regulatory scrutiny on centralized oracles and demand for trustless systems favor first-party solutions amid growing adoption of dApps in finance, gaming, and supply chains.[3] API3 influences the ecosystem by shifting the industry from legacy models to decentralized, provider-operated oracles, fostering innovation in prediction markets and insurance while boosting network effects through rewards and partnerships.[2][4]

Quick Take & Future Outlook

API3 is poised to dominate oracle infrastructure as DeFi matures, with expansions in OEV Rewards and multi-chain support driving adoption among more protocols.[4] Trends like AI-blockchain integration and regulatory clarity will amplify its first-party model, potentially capturing larger shares of the oracle market against incumbents. Its influence may evolve into a foundational Web3 primitive, powering mass-market dApps—reinforcing its role as the oracle that not only connects data but rewards its users.[2][4]

Sources

Frequently Asked Questions

How much funding has API3 raised?

API3 has raised $3.0M in total across 1 funding round.

Who are API3's investors?

API3's investors include 01 Ventures, 305 Ventures, Activant Capital, Ambridge Capital, Andreessen Horowitz, Angel investor, Archetype, Ballistic Ventures, Blisce, Bombas, Bond, Bow Capital.