Venture Scanner Sector Maps (Part 2 of 2)

Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.

Last week, we kicked off our sector map update with Part 1. You can read that blog post here.

This post is the second of a two-part series. Below you will find sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality.

Artificial Intelligence: 13 categories, 2161 companies, $32B in funding

Artificial Intelligence Sector Map
Artificial Intelligence Sector Map

Internet of Things: 20 categories, 2151 companies, $52B in funding

Internet of Things Sector Map
Internet of Things Sector Map

Marketing Technology: 15 categories, 1771 companies, $33B in funding

Marketing Technology Sector Map
Marketing Technology Sector Map

Real Estate Technology: 12 categories, 1649 companies, $48B in funding

Real Estate Technology Sector Map
Real Estate Technology Sector Map

Retail Technology: 21 categories, 1746 companies, $59B in funding

Retail Technology Sector Map
Retail Technology Sector Map

Security Technology: 14 categories, 1063 companies, $25B in funding

Security Technology Sector Map
Security Technology Sector Map

Transportation Technology: 17 categories, 1238 companies, $117B in funding

Transportation Technology Sector Map
Transportation Technology Sector Map

Virtual Reality: 13 categories, 750 companies, $10B in funding

Virtual Reality Sector Map
Virtual Reality Sector Map

To learn more about our complete report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Martech Investments Increasing in Importance Over Time

The Marketing Technology (martech) sector has seen a lot of venture capital funding over the past few years. How have its funding trends evolved over time? On our martech research platform, we have analyzed the data through 2017 and can conclude that the investments in martech have become fewer in frequency but larger in amount.

We have come to this conclusion from the following three takeaways:

  • Martech funding amounts are on a general upward trend at the annual level
  • Martech funding event counts have seen a decline in recent years
  • Martech average funding event size has been growing consistently

We will illustrate these takeaways with a series of graphics to show the trend of martech investments over time.

Martech Funding Amounts on Upward Trend Annually

We will start off by examining the martech funding trends over the years stacked by quarter.

Marketing Technology Funding by Quarter - Stacked
Marketing Technology Funding by Quarter – Stacked

This graph illustrates that martech funding is on a stable upward trend at the annual level. Specifically, the CAGR in funding amounts from 2012 to 2017 is 19%.

We have seen that martech funding is steadily growing, but what about the total number of deals?

Martech Funding Event Count Declining in Recent Years

The following graph shows us the annual number of martech startup funding deals, stacked by quarters.

Marketing Technology Funding Count by Quarter
Marketing Technology Funding Count by Quarter

The above graphic illustrates that the number of martech funding events saw a healthy upward trend from 2011 to 2014 and declined thereafter. In fact, the CAGR in funding events from 2012 to 2017 is -5%, and the number of events in 2017 is 88% of that in 2016.

We have seen that martech funding amounts are increasing steadily but its funding events are seeing a decline. Let’s see if the trend in average deal size sheds any further insight.

Average Martech Funding Deal Size Growing Over Time

The following graph shows the average funding deal size in Marketing Technology over different quarters from 2011 to 2017, as well as the trendline.

Marketing Technology Average Funding Event Size Over Time
Marketing Technology Average Funding Event Size Over Time

This graphic does indicate that the average martech funding deal size has experienced steady growth over the past few years. The trendline shows that from Q3 2011 to Q4 2017 the average deal size has grown by approximately 500%. This stable upward trend in average deal size demonstrates that the investments in Marketing Technology have indeed become weightier over time.

Conclusion: Investments in Marketing Technology Are Increasing in Importance

In summary, we have seen from the above graphics that martech funding amounts are on a general upward trend at the annual level, yet its event counts have seen a decline in recent years. Moreover, the average funding deal size has been growing consistently over time. These takeaways lead us to conclude that the investment rounds in martech have become more substantial–in that the bets have become fewer but larger over time. It’ll be interesting to see if this trend continues in 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Marketing Technology research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Marketing Technology Startup Highlights  – Q4 2017

Here is our Q4 2017 summary report on the Marketing Technology (Martech) startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete Marketing Technology (Martech) report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Where in the World Are Marketing Technology Startups? – Q3 2017

The analyses below summarize where Marketing Technology (Martech) innovations are occurring. The graphic includes data through May 2017.

Marketing Technology Company Count by Country
Marketing Technology Company Count by Country

The above map shows the number of Martech companies located in different countries. The United States ranks as the top country with around 1050 companies.

Marketing Technology VC Funding by Country
Marketing Technology VC Funding by Country

The above map shows the amount of total Martech startup venture capital funding in different countries. The United States has the most VC funding at around $23B.

We are currently tracking 1707 Martech companies in 15 categories across 60 countries, with a total of $30.4B in funding. Click here to learn more about the full Marketing Technology market report.

Age by Category in Marketing Technology – Q3 2017

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

Age by Marketing Technology Category
Age by Marketing Technology Category

The above graph summarizes the average and median age of companies in each Marketing Technology category. The SEM (Search Engine Marketing) category has both the highest average and median ages, at around 11 years each. Other mature categories include Marketing Automation, Email Marketing, and SEO (Search Engine Optimization). Influencer Marketing and Social Discovery are the youngest Marketing Technology categories with an average age of around 6 years each.

We are currently tracking 1704 Marketing Technology companies in 15 categories across 60 countries, with a total of $29.9B in funding. Click here to learn more about the full Marketing Technology market report.

Marketing Technology Companies Founded by Year – Q3 2017

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

Marketing Technology Companies Founded by Year
Marketing Technology Companies Founded by Year

The above graph summarizes the number of Marketing Technology companies founded in a certain year. 2012 ranks at the top with around 208 companies founded in that year alone. 2011 is the runner-up with 191 companies founded in that year.

We are currently tracking 1691 Marketing Technology companies in 15 categories across 59 countries, with a total of $29.4 Billion in funding. Click here to learn more about the full Marketing Technology market report.

Marketing Technology Funding Trends – Q3 2017

The following graphs highlight recent trends in Marketing Technology (Martech) startup funding activity. The graphics include data through May 2017.

Martech Funding by Year Q3 2017

The above graph summarizes the total funding raised by Martech startups for each year. 2016 has the most funding to date at just over $6B.

Martech Vintage Year Funding Q3 2017

The above graph summarizes the total amount of funding raised by Martech companies founded in a certain year. Companies founded in 2009 have raised the most funding around $4B.

We are currently tracking 1,684 Martech companies in 15 categories across 58 countries, with a total of $29 Billion in funding. Click here to learn more about the full Marketing Technology market report.