APIs and Agentic AI - Deep and Narrow

Every time I evaluate a new startup, I ask myself a simple question:

Why would I invest in this API company?

Since launching Func Ventures in 2022, I’ve conducted due diligence on over 150 API-first startups across the APAC region. It’s been a deep dive into a fast-growing, highly technical world — and through all that noise, one consistent filter has emerged:

💡 Is this company solving one hard problem — really narrowly, really deeply — in a market big enough to matter?

That’s the bar. And so far, it’s led me to back six incredible companies, each a category leader in their niche:

1. FrankieOne – #1 in KYC/AML

2. SourseAI – #1 in MVNO marketing

3. AsiaVerify – #1 in KYB compliance

4. LittlePhil – #1 in charity tech

5. LiteCard – #1 in mobile wallet cards

6. TikPay – #1 in public transport payments

7. TBA – Hint: it’s in the energy space ⚡️

What ties these companies together isn’t just traction — it’s deep domain expertise in the founding team and a relentless focus on solving one tough problem exceptionally well. And as they gain momentum, these teams aren’t afraid to land narrow and expand wide — a hallmark of great API businesses.

🧩 APIs: The Internet’s Secret Infrastructure

APIs are the software-to-software highways that power everything from payments to onboarding, logistics to authentication. They’re the connective tissue of modern software — and increasingly, the infrastructure layer of the digital economy.

As we transition into the AI-native era, I see striking parallels between API-first businesses and emerging Agentic AI companies. The early signs are simple — chaining APIs with logic and purpose — but the potential is enormous.

And when it comes to how I evaluate them?

Same lens. Same question.

👉 Narrow. Deep. Solving something hard. In a market big enough to change the game.