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The digital transformation, accelerated by the pandemic, has put new pressures on the web application development industry. Amid scarce resources – one source puts the US software developer shortage at 1 million – web application delivery times are now on average more than four months, according to OutSystems. Compressed deadlines and skeletal developer teams lead to bugs, with a significant number of companies reporting a cyberattack resulting from a buggy web application. Poor-quality apps also hurt brand images, with more than 88% of people polled in a QualiTest survey saying they would abandon an app if they encountered any bugs or issues.
Guillermo Rauch founded Vercel in 2015 with the aim of alleviating some of the challenges faced by app developers. The San Francisco, Calif., Based company, which today announced it has raised $ 150 million in a Series D funding round led by GGV Capital, offers a web application development platform based on the framework. front-end open source Next.js.
Accel, Bedrock Capital, CRV, Geodesic Capital, Greenoaks Capital, GV, 8VC, Flex Capital, Latacora, Salesforce Ventures, Tiger Global and SV Angel also contributed to the last tranche of Vercel, which will be devoted to recruitment, R&D and to customer acquisition. , according to Rauch. He values the company at $ 2.5 billion post-money and brings Vercel’s total raised capital to $ 313 million.
“With the backend commoditized by cloud infrastructure … and standard APIs, Vercel believes that creativity and innovation to advance the development of modern web and cloud applications is increasingly happening at the frontend,” said Rauch. to VentureBeat by email. “Vercel is a modern web development platform for rapidly developing, previewing and delivering high quality, high performance websites. With Vercel, web developers no longer need to be highly skilled to build both the front and back end of websites. Now developers can focus on the frontend in Vercel and offload backend tasks to plug-in APIs.
Web application development framework
“Most of the added value in web and cloud application development today is created upstream, closer to the user, where real experiences are created and enjoyed,” added Rauch. “Businesses today depend on high performance web applications to generate revenue through e-commerce or the provision of services such as news, media and software as a service. With Vercel, their websites offer a superior user experience, are faster, more reliable and more secure.
Next.js weekly installs now average around 2 million.
Vercel’s enterprise services add a live editing experience for user interface components and flexible data retrieval to the Next.js framework, allowing developers to connect web pages to different data sources, systems of content management and API. Vercel also offers integrations with GitHub, GitLab, and Bitbucket, as well as a deployment system that kicks in with every code change and preview links that can be shared between platforms.
Beyond that, Vercel, which has 100 employees, competes with companies such as Netlifly. The company claims that the CDN serves 9 petabytes of data, growing from millions to billions of web pages through dynamic code execution.
Among the 25,000 customers using Vercel’s platform include TikTok, Hulu, Ticketmaster, McDonald’s, IBM, Uber, Staples and Marvel for use cases such as e-commerce, travel, news and marketing, according to Glenn Solomon, Managing Partner of GGV Capital.
“Vercel has taken the world of front-end web development by storm. Built by developers for developers, Vercel created and continues to build Next.js within the dominant React framework. At GGV Capital, we believe that every company in the world becomes a software company, and Vercel’s ability to deliver both fast front-ends and personalized user experiences is helping to fuel this trend, ”Solomon said in a statement. “Vercel is one of the most exciting product-driven growth companies we have encountered. The future is very promising for Vercel.
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Vercel is benefiting from a greater boom in investments in application development tooling platforms. As Business Insider notes, just five years ago, venture capitalists didn’t understand the value of developer-focused startups. With the digital switchover and the adoption of remote working, however, it has become clear how essential these technologies are to the application ecosystem.
Investors have raised more than $ 37 billion for cloud and web architecture startups this year, up $ 17 billion from 2016, according to analyst firm PitchBook. Grand View Research predicts that the global application development software market will be worth $ 733.5 billion by 2028.
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