DevTools Brew #0: Navigating the New Era of DevTools
The Rise of Developer-First Companies
Hello and welcome to edition #0 of DevTools Brew, your weekly dose of the emerging trends and insights from the infrastructure & devtools industry -you can find more information here.
Before delving into the latest trends and insights in the rapidly evolving world of devtools and infrastructure, it's worth starting by explaining why I'm personally invested in covering this exciting (and still nascent) industry. As the proud co-founder of Qovery, I have a keen interest in this space.
In this context, let me briefly overview the new era of DevTools by exploring the rise of ‘Developer-First Companies’.
👨💻 Building for 27M Developers
The Devtools and Infrastructure industry is one of the fastest-growing segments in the tech industry. As more and more businesses move their operations online, the demand for developers who can build and manage software applications has increased dramatically.
One of the key reasons for the growth of the devtools and infrastructure industry is the increasing adoption of cloud technologies. Cloud services have made it easier for companies to develop and deploy software applications at scale. This has created new opportunities for startups and early-stage companies to build and sell developer tools that help businesses streamline their software development processes.
Another trend driving the growth of the devtools and infrastructure industry is the shift toward a bottom-up buying approach. In the past, IT departments were responsible for selecting and purchasing software tools. But with the rise of self-service platforms and cloud-based solutions, developers now have more autonomy and buying power. This has created new opportunities for companies that can create developer tools that are easy to use and can be adopted without the need for extensive IT support.
💰 Investors Flock to this Attractive Segment
Over the past five years, we've seen a significant increase in Venture Capital investments in infrastructure and devtools startups, from $646 million in 2014 to a staggering $16 billion in 2021. This nearly doubles all previous private company raises and reflects the incredible growth potential of the industry.
This trend can be attributed to the success of public companies like Atlassian, Twilio, and Stripe, which have all grown into multi-billion dollar businesses.
The success of these companies has created a ripple effect in the industry, as more and more investors are looking to fund startups that focus on developer tools and infrastructure. Some of the most significant success stories include Microsoft's acquisition of GitHub for $7.5 billion and Datadog, which is now valued at over $23 billion, or GitLab, valued at over $16 billion.
This industry's landscape is ever-changing and developing at a swift pace, which makes it challenging to stay up-to-date with the latest trends. That's precisely where the DevTools Brew newsletter comes in. Its purpose is to help you stay informed and ahead of the curve by sharing emerging trends and insights from industry experts.
➡️ What’s Next
Issue #1 of DevTools Brew will bring you a quick 5-minute read that includes the following:
A business-oriented perspective on emerging trends such as Devtools startups, technology, latest fundraising rounds, and more
A thought-provoking article on the infrastructure and devtools industry
A deep dive into a specific topic/interview from an industry expert
Bonus: once a month, we'll feature an innovative business idea in the devtools space to inspire you
Through this newsletter, I aim to provide trends, insights, analysis, and thought-provoking content that can help devtools founders, industry experts, and businesses alike navigate this exciting and rapidly evolving landscape.
