Venture Investing in Retail Technology – Q3 2017

The following graphs highlight venture investing trends into the Retail Technology sector. The graphics include data through September 2017.

Retail Technology Venture Investing by Category
Retail Technology Venture Investing by Category

The above graph compares the total venture funding in each Retail Tech category to the number of companies in the category. The Last Mile Logistics category leads in funding at around $13B. The Marketing Platforms category leads in the number of startups with about 214.

Retail Technology Average Funding by Category
Retail Technology Average Funding by Category

The above analysis summarizes the average company funding in each Retail Tech category. The Daily Deals category leads the sector with around $119M in average funding per company, followed by the Last Mile Logistics category with around $83M in average funding per company.

We are currently tracking 1640 Retail Tech companies in 22 categories across 58 countries, with a total of $52.8B in funding. Click here to learn more about the full Retail Technology market report.

Age by Category in Retail Technology – Q3 2017

The following graph shows average and median age in the Retail Technology sector. The graphic includes data through September 2017.

Retail Technology Age by Category
Retail Technology Age by Category

The above graph summarizes the average age and median age of companies in each Retail Technology category. The Daily Deals category ranks as the most mature Retail Technology category with an average age of around 11 years and a median age of 8 years. Made to Measure Customization comes in as the second oldest category, with a average age of around 10 years and a median age of 8 years. On the other hand, Last Mile Logistics is the youngest Retail Technology category with an average age and a median age of around 5 years each.

We are currently tracking 1673 Retail Technology companies in 22 categories across 58 countries, with a total of $51.7 Billion in funding. Click here to learn more about the full Retail Technology market report.

Retail Tech Market Overview and Innovation Quadrant – Q3 2017

The following post highlights how Venture Scanner categorizes the Retail Technology startup landscape, and presents our Innovation Quadrant showing how those categories compare to one another. The data for this post is through September 2017.

Retail Tech Q3 2017 Logo Map

The above sector map organizes the sector into 22 categories and shows a sampling of companies in each category.

Retail Tech Q3 2017 Innovation Quadrant

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Retail Tech categories and how they compare with one another.

  • Heavyweights: These categories are comprised of companies that have reached maturity with significant financing.
  • Established: These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the Retail Tech categories are as follows

Automated Personalization Platforms: Companies that work with retailers to deliver custom ads, marketing messages, and dynamically optimize site pages for different users. Examples include platforms that allow A/B testing and platforms that tailor websites to each individual user’s specific tastes.

Coupons: Companies that focus on both traditional and digital merchant coupons.

Data and Analytics: Companies that help with the acquisition, organization, and distribution of data that companies can then utilize to enhance their applications and service offerings. Includes inventory management software.

Infrastructure and Enablers: Companies that provide tools designed to help developers increase functionality in their existing products. Examples include payment integration, native smartphone applications, and website development.

In-Store Experience: Companies that enable brick and mortar retailers to enhance the customer journey through digital engagement, mobile-first initiatives, gamification, and more.

In-Store Management: Companies that aim to improve the productivity of brick and mortar sales associates. Examples include productivity apps that track their effectiveness in-store as well as apps that provide them with insights to better do their jobs.

Last Mile Logistics: Companies that are innovating on the last phase of the supply chain, from the store/warehouse to the consumer.

Local Advertising Technology: Companies that alert the consumer of a retail product or service. The advertising models in the O2O market often center around targeted ads, real-time mobile ads, retargeting, dynamic ads based on proximity to clear inventory, ads targeted based on check-ins or social comments, and in-store up-sell ads.

Local Daily Deals: Companies that sell locally available, pre-paid vouchers for steeply discounted goods and services. This category also includes daily deal aggregators.

Local Incentives: Companies that help stores increase loyalty, customer base, and revenue from both new and repeat customers through deals, local offers, discounts, frequency rewards, gamified badges, and other techniques.

Loyalty Programs: Products that provide or power a merchant’s reward / loyalty program. Examples include digital frequent shopper cards, and tailored rewards based on spending.

Made-to-Measure Customization: Companies that use proprietary technologies and supply chain processes to enable shoppers to create custom goods. Examples include clothing fitted to exact specifications.

Marketing Platforms and Customer Relationship Management: Companies that enable merchants / brands to engage with their customers across social media channels, and execute and manage marketing campaigns. This category also includes customer relationship management tools used to improve customer communication, tracking, and overall relations.

Online to Offline Payments: Companies that are changing the way we pay for goods. In addition to payment execution, this also includes companies that provide consumers with a mobile wallet (e.g. payment information, loyalty cards) or other digital storage functionality (e.g. receipts).

Physical Store Analytics and Indoor Mapping: Companies that use sensors, cameras, and mobile devices to provide retailers more data about customer behavior in-store such as window conversion rate, customer dwell time, optimal shelf placement, and ideal store hours. These companies help retailers optimize the customer experience to increase revenue.

Point of Sale Payments: Companies centered around payment acquirers, providing physical payment solutions for brick-and-mortar businesses and organizations. Examples include mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).

Price and Feature Comparison: Companies that empower consumers to compare product prices at different outlets or compare features across similar products (e.g. scan and engage capabilities for QR codes, bar codes, or physical items to bring up product information and comparisons in real-time).

Product Recommendation: Companies that use crowdsourced data, individual stylists, and/or automated algorithms to determine the best products for a given shopper based on their individual preferences.

Retail Augmented Reality: Companies that enable consumers to interact with products using augmented reality (e.g. virtual manipulation).

Retargeting: Companies that use cookie data to follow online users and serve dynamic, relevant ads all over the web.

Search and Local Availability: Companies that provide the means by which consumers can search and/or compare local availability of products and prices. This includes innovations such as store-level inventory searches and local comparisons.

Social Discovery: Companies that allow for discovery of products through social sharing and location check-ins. Examples include discovery social networks as well as platforms with integrated ecommerce functions.

We are currently tracking 1,670 Retail Tech companies in 22 categories across 58 countries, with a total of $51 Billion in funding. Click here to learn more about the full Retail Technology market report.

Where in the world are Retail Technology startups? Q3 2017

The analyses below summarize where Retail Technology innovations are occurring. The graphic includes data through April 2017.

Retail Tech Q3 2017 Company Count by Country

The above map shows the number of Retail Tech companies located in different countries. The United States ranks as the top country with around 900 companies.

Retail Tech Q3 2017 VC Funding by Country

The above map shows the amount of total Retail Tech startup venture capital funding in different countries. The United States has the most VC funding at around $28B.

We are currently tracking 1,699 Retail Tech companies in 22 categories across 58 countries, with a total of $51B in funding. Click here to learn more about the full Retail Technology startup market report.

Retail Technology Companies Founded by Year – Q3 2017

The following graph shows the founding year distribution in the Retail Technology sector. The graphic includes data through May 2017.

Retail Technology Companies Founded by Year
Retail Technology Companies Founded by Year

The above graph summarizes the number of Retail Technology companies founded in a certain year. 2012 ranks at the top with around 228 companies founded in that year alone. 2011 is the runner-up with 220 companies founded in that year.

We are currently tracking 1663 Retail Technology companies in 22 categories across 58 countries, with a total of $50.7 Billion in funding. Click here to learn more about the full Retail Technology market report.

Retail Technology Funding Trends – Q3 2017

The following graphs highlight recent trends in Retail Technology startup funding activity. The graphics include data through April 2017.

Retail Tech Q3 2017 Funding by Year

The above graph summarizes the total funding raised by Retail Tech startups for each year. 2015 has the most funding to date at around $9B.

Retail Tech Q3 2017 Vintage Year Funding

The above graph summarizes the total amount of funding raised by Retail Tech companies founded in a certain year. Companies founded in 2012 have raised the most funding just over $4.5B.

We are currently tracking 1,658 Retail Tech companies in 22 categories across 58 countries, with a total of $51 Billion in funding. Click here to learn more about the full Retail Technology market report.

Retail Technology Funding by Round – Q3 2017

The following two graphs summarize the rounds of funding going into the Retail Technology space. Please note these graphics are made using data through April 2017.

Retail Technology Funding Amount by Round
Retail Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. From 2009 to 2015, we saw a general increase in the overall sector funding, with the total amount peaking once in 2011 and peaking by more than twice that amount in 2015. With the exception of Seed funding, all other rounds of funding saw approximately equal amounts during these years. After 2015 the overall sector funding saw a sharp decline.

Retail Technology Funding Count by Round
Retail Technology Funding Count by Round

The graph above shows the total count of funding events broken out by round. From 2006 to 2014 we’ve seen a steep upward trend that peaked in 2014, dipped slightly in 2015, and then declined sharply in 2016. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.

We are currently tracking 1657 Retail Technology companies in 22 categories across 58 countries, with a total of $50.1 Billion in funding. Click here to learn more about the full Retail Technology market report.