Having one or more functions really depends of what you're trying to achieve. Having your whole api as one functions has drawbacks yes, like increased cold start time and and slightly slower response time due to the framework additional routing. It can be acceptable or not, depending of your use case. If you're looking for the best performance and fastest response times then you will better with separate functions and relying on the provider's routing. For that there's a Nestjs WIP compiler that provides additional annotations to deploy your app as separate functions, but there's no public doc for it yet: github.com/nestjs/serverless-core
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Having one or more functions really depends of what you're trying to achieve. Having your whole api as one functions has drawbacks yes, like increased cold start time and and slightly slower response time due to the framework additional routing. It can be acceptable or not, depending of your use case. If you're looking for the best performance and fastest response times then you will better with separate functions and relying on the provider's routing. For that there's a Nestjs WIP compiler that provides additional annotations to deploy your app as separate functions, but there's no public doc for it yet: github.com/nestjs/serverless-core