It’s been a sedate start to the new year for martech companies with a 29% drop in VC funds compared to the same quarter last year. (from $2.24 billion in Q1’16 to $1.59 billion in Q1’17. 2016 closed Q4 with $3.87 billion in funding, still higher than what Q1’17 has garnered. Consider this: 200+ VCs invested in 95 martech companies across 30 Categories in Q1’17, compared to 90+ VCs investing in 107 martech Companies across 41 categories (of a possible 44 categories) in Q1’16. Both the sweep of categories invested in, and the average amount invested has reduced, considering the actual VCs active have gone up from 90+ to 200+. The top investor for Q1’17 - Greycroft Partners (with 4 Investments already!) were also among the top 9 investors in 2016 with 7 investments. Is there a new flavor of the season? Marketing Automation, Mobile Marketing, Sales Enablement, Social Media Marketing, Events & Webinars are all categories funded in Q1’17 that didn’t figure in the top 10 funded categories of 2016. Ecommerce which was in fifth place in 2016 grabbed top spot in the top 10 funded categories in Q1’17 and looks set to surpass its $790 million funds mark won last year. In Q4’16, sales enablement was among the highest funded categories (even though it didn’t make it to the top 10 categories for the year 2016) and the trend continues with sales enablement and events & webinars both seeing two companies each in the top 10 funded companies for Q1’17. In fact, Fuze (events and webinar solutions category) got funded in Q4'16 as well as in Q1'17. Are solutions focusing on tangible and measurable leads and sales going to see more traction from VCs this year or will platforms and suites continue to rule the roost? Only time will tell. For now, have a look at the Q1’17 Investscape to see what’s been brewing in the business this quarter.
MarTech Advisor's Investscape Q1 2017
It’s been a sedate start to the new year for martech companies with a 29% drop in VC funds compared to the same quarter last year. (from $2.24 billion in Q1’16 to $1.59 billion in Q1’17. 2016 closed Q4 with $3.87 billion in funding, still higher than what Q1’17 has garnered. Consider this: 200+ VCs invested in 95 martech companies across 30 Categories in Q1’17, compared to 90+ VCs investing in 107 martech Companies across 41 categories (of a possible 44 categories) in Q1’16. Both the sweep of categories invested in, and the average amount invested has reduced, considering the actual VCs active have gone up from 90+ to 200+. The top investor for Q1’17 - Greycroft Partners (with 4 Investments already!) were also among the top 9 investors in 2016 with 7 investments. Is there a new flavor of the season? Marketing Automation, Mobile Marketing, Sales Enablement, Social Media Marketing, Events & Webinars are all categories funded in Q1’17 that didn’t figure in the top 10 funded categories of 2016. Ecommerce which was in fifth place in 2016 grabbed top spot in the top 10 funded categories in Q1’17 and looks set to surpass its $790 million funds mark won last year. In Q4’16, sales enablement was among the highest funded categories (even though it didn’t make it to the top 10 categories for the year 2016) and the trend continues with sales enablement and events & webinars both seeing two companies each in the top 10 funded companies for Q1’17. In fact, Fuze (events and webinar solutions category) got funded in Q4'16 as well as in Q1'17. Are solutions focusing on tangible and measurable leads and sales going to see more traction from VCs this year or will platforms and suites continue to rule the roost? Only time will tell. For now, have a look at the Q1’17 Investscape to see what’s been brewing in the business this quarter.
