Here is our Q1 2018 summary report on the retail technology startup sector. The following report includes an overview, recent activity, and a category deep dive.
The Retail Technology sector includes companies that facilitate the operational procedures of retailers. It also contains companies that make it easier to search and shop for merchandise.
What are the different components of Retail Technology? How do they make up this startup ecosystem? On our retail tech research platform, we have classified the companies into 21 categories. This blog post examines these categories and how they compare with one another.
Marketing Platforms Is the Largest Category
Let’s start off by looking at the Sector Map for the Retail Technology sector. As of March 2018, we have classified 1,746 Retail Technology startups into 21 categories. They have raised $59 billion in funding. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Marketing Platforms is the largest category with 245 companies. This category includes companies that enable merchants 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.
We have seen the Retail Technology categories 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.
Marketing Platforms Is the Heavyweight Category in Retail Technology
Our Innovation Quadrant divides the Retail Technology categories into four different quadrants.
We can see that Marketing Platforms is in the Heavyweights quadrant. Heavyweight categories have reached maturity with large amounts of funding. 11 categories are in the Established quadrant for reaching maturity with less financing.
4 categories are Disruptors, acquiring significant financing at a young age. The final 5 categories belong in the Pioneers quadrant. They are in the earlier stages of funding and maturity.
We’ve now seen the Retail Technology categories and their relative stages of innovation. Marketing Platforms emerges as a key category. It leads in total companies and appears in the Heavyweights quadrant. Yet how does its funding stack up against other categories? Let’s look at the Total Funding and Company Count Graph.
Last Mile Logistics Startups Have the Most Funding
The graph below shows the total amount of venture funding and company count in each category.
As the above graphic implies, the Last Mile Logistics category leads in funding. Its $13 billion in funding is almost 50% higher than the next category, POS Payments.
Last Mile Logistics companies are innovating on the last phase of the supply chain. They work on moving goods from a local retailer to a consumer’s home. Some example companies in this category include Instacart, DoorDash, Bigbasket, and Deliveroo.
Conclusion: Marketing Platforms and Last Mile Logistics Lead the Sector
The graphics above show that Marketing Platforms leads the sector for having the most companies and being a Heavyweight relative to other categories. The Last Mile Logistics category leads the sector for having the most funding.
What are your thoughts on this? Let us know in the comments section below.
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
Internet of Things: 20 categories, 2151 companies, $52B in funding
Marketing Technology: 15 categories, 1771 companies, $33B in funding
Real Estate Technology: 12 categories, 1649 companies, $48B in funding
Retail Technology: 21 categories, 1746 companies, $59B in funding
Security Technology: 14 categories, 1063 companies, $25B in funding
Transportation Technology: 17 categories, 1238 companies, $117B in funding
Virtual Reality: 13 categories, 750 companies, $10B in funding
The following graph shows the founding year distribution in the Retail Technology sector. The graphic includes data through September 2017.
The above graph summarizes the number of Retail Technology companies founded in a certain year. 2012 ranks at the top with around 242 companies founded in that year alone. 2011 is the runner-up with 224 companies founded in that year.
We are currently tracking 1673 Retail Technology companies in 22 categories across 58 countries, with a total of $54.5 Billion in funding. Click here to learn more about the full Retail Technology market report.
The analyses below summarize where Retail Technology innovations are occurring. The graphic includes data through September 2017.
The above map shows the number of Retail Tech companies located in different countries. The United States ranks as the top country with around 950 companies.
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 $30B.
We are currently tracking 1667 Retail Tech companies in 22 categories across 58 countries, with a total of $54.3B in funding. Click here to learn more about the full Retail Technology startup market report.
The following graphs highlight recent trends in Retail Technology startup funding activity. The graphics include data through September 2017.
The above graph summarizes the total funding raised by Retail Tech startups for each year. 2015 has the most funding to date at around $10.5B.
The above graph summarizes the total amount of funding raised by Retail Tech companies founded in a certain year. Companies founded in 2008 have raised the most funding at around $7.7B.
We are currently tracking 1667 Retail Tech companies in 21 categories across 58 countries, with a total of $54.3 Billion in funding. Click here to learn more about the full Retail Technology market report.
The following two graphs summarize the rounds of funding going into the Retail Technology space. Please note these graphics are made using data through September 2017.
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. Late Stage funding seems to have dominated all the other funding rounds in their funding amounts in 2015. After 2015 the overall sector funding saw a sharp decline.
The graph above shows the total count of funding events broken out by round. From 2006 to 2016 we’ve seen a steep upward trend that peaked 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 1661 Retail Technology companies in 22 categories across 58 countries, with a total of $53.8 Billion in funding. Click here to learn more about the full Retail Technology market report.