Marketing Platforms Category Leads Marketing Technology Funding

As we previously noted, marketing technology funding has remained stable over the past few years. Digging in deeper at the martech category level reveals that the Marketing Platforms category leads both in Q3 and overall funding.

We’ll highlight this observation with some graphics and discussions below.

The Marketing Platforms Category Leads Marketing Technology In Q3 Funding

To start off, let’s review the amount of funding raised this quarter by each category within marketing technology.

Marketing Technology Latest Quarter Category Funding
Marketing Technology Latest Quarter Category Funding

The above graphic highlights that the Marketing Platforms category leads the sector in Q3 funding with $650M. The Mobile Marketing category follows in a close second place with almost $600M in Q3 funding.

Marketing Platform companies enable businesses to execute and manage marketing campaigns. It also contains customer relationship management tools used to improve customer engagement. Some example companies in this category include Showpad, Sprinklr, Gainsight, and Medallia.

Let’s now investigate how these categories’ funding compare with each other historically.

The Marketing Platforms Category Also Leads in All-Time Funding

The graph below shows the all-time funding for different marketing technology categories. The Q3 funding and growth rates of these categories are also highlighted.

Marketing Technology Total Category Funding
Marketing Technology Total Category Funding

As the bar graph indicates, the Marketing Platforms category also leads marketing technology in total funding at $11B. This is more than 1.6 times the funding of the next category, Marketing Automation at $6.7B.

In summary, the Marketing Platforms category is the clear funding leader both in Q3 and all-time. Let’s see how the the rest of 2018 shapes up for marketing technology!

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

Marketing Technology Sector Overview – Q3 2018

The marketing technology sector has seen an abundance of activity over the past few years. The blog post examines the different components of the martech sector and how they make up this startup ecosystem. We will illustrate what the major sector categories are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Marketing Automation Software Is the Largest Martech Category

Let’s start off by looking at the Sector Map. We have classified 1801 martech startups into 15 categories that have raised $37 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

marketing-technology-sector-map
Marketing Technology Sector Map

We see that Marketing Automation Software is the largest category with 284 companies. These companies enable marketers to automate or enhance the process of inbound and outbound marketing. Some example companies are Sailthru, Infusionsoft, Tinyclues, and Salesfusion.

We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

The Pioneers Quadrant Has the Most Martech Categories

Our Innovation Quadrant divides the martech categories into four different quadrants.

marketing-technology-innovation-quadrant
Marketing Technology Innovation Quadrant

We see that the Pioneers quadrant has the most martech categories with 8. The Pioneer categories are in the earlier stages of funding and maturity. The Disruptors quadrant has 5 categories that have acquired significant financings at a young age. The Established quadrant has SEO as its one category, which has reached maturity with less financing. The Heavyweights quadrant also contains one category, SEM. This category has reached maturity with significant financings.

We’ve analyzed the martech categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.

Marketing Platform Startups Have the Most Funding

The graph below shows the total amount of venture funding and company count in each category.

marketing-technology-funding-by-category
Marketing Technology Total Funding and Company Count by Category

As the above graphic implies, the Marketing Platforms category leads in total funding with $11 billion. Its funding is 1.6 times the funding of the next category, Marketing Automation Software with almost $7 billion.

Marketing Platform companies enable businesses to execute and manage marketing campaigns. It also contains customer relationship management tools used to improve customer engagement. Some example companies in this category include Showpad, Sprinklr, Gainsight, and Medallia.

Conclusion: Marketing Automation Software and Marketing Platforms Lead the Sector

The analysis above demonstrates Marketing Automation Software leads the sector in total companies. The Marketing Platforms category leads in total funding. We’ll see how things evolve during the rest of 2018.

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

Marketing Technology Startup Highlights  – Q3 2018

Here is our Q3 2018 summary report on the marketing technology startup sector. The following report includes a sector overview and recent activity.

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

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.