Last Mile Logistics Category Leads Retail Technology Funding

Last quarter we examined retail technology funding trends and saw that its funding is shifting to later-stage events. Now we are conducting a thorough inspection on our retail tech research platform to compare funding by category. Our analysis reveals two important observations:

  • The Last Mile Logistics category leads the sector in Q2 funding
  • The Last Mile Logistics category also leads the sector in all-time funding

We’ll explain these observations with some graphics and discussions below.

The Last Mile Logistics Category Leads Retail Technology In Q2 Funding

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

Retail Technology Latest Quarter Category Funding
Retail Technology Latest Quarter Category Funding

The above graphic shows that the Last Mile Logistics category leads the sector in Q2 funding with $1.3B. Its funding is almost twice the funding of the next category, Marketing Platforms at $0.7B.

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.

So we’ve observed how different retail technology categories stack up in their Q2 funding. But how do these categories’ funding compare with each other historically? Let’s investigate that in the next section.

The Last Mile Logistics Category Also Leads in All-Time Funding

The graph below shows the all-time funding for different retail technology categories. The Q2 funding and growth rates of these categories are also highlighted.

Retail Technology Total Category Funding
Retail Technology Total Category Funding

The bar graph indicates that the Last Mile Logistics category also leads the sector in total funding at $19B. This is almost twice the funding of the next category, Marketing Platforms at $10B.

Conclusion

The Last Mile Logistics category is the clear retail technology leader in not only Q2 funding but in all-time funding as well.

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

Retail Technology Startup Highlights  – Q2 2018

Here is our Q2 2018 summary report on the retail technology startup sector. The following report includes a sector overview and recent activity.

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

Retail Technology Sector Matures As Funding Shifts to Mid and Late Stages

As we previously noted, retail technology has shown consistent growth over the past few years. Now we are taking a more detailed look on our retail technology report and research platform to examine its funding by round. From our analysis, we can conclude that the retail technology sector has been maturing over the past few years.

This conclusion comes from two takeaways:

  • Funding amount percentages are shifting to mid and late-stage events
  • Funding count percentages are shifting to mid and late-stage events

We’ll explore these takeaways in some more detail below.

To help set the stage, the graphic below highlights retail technology funding amounts over time. As you can see, the sector’s overall funding experienced a burst of growth from 2012 to 2017.

Retail Technology Funding by Quarter
Retail Technology Funding by Quarter

Retail Technology Funding Amount Percentages Shifting to Later-Stage Events

Let’s examine the retail technology funding amounts by round as a percentage of the total, which show changes independent of the total funding amount by year.

Retail Technology Funding Amount Percentages
Retail Technology Funding Amount Percentages

The above graph shows that the funding amount percentages in Seed and Series A rounds dropped relative to the other round types. In addition, the funding amount percentages in all the other rounds stayed constant or increased.

Specifically, Seed and Series A funding amount percentages fell by over half from 32% to around 13%. On the other hand, Series C and Late Stage funding amount percentages grew from 24% to over 40% during the same time period.

We see that the funding amount percentages by round indicate a shift from early-stage to mid and late-stage events from 2012 to 2017. Would the funding event count graph show the same trend? Let’s examine that in the next section to find out.

Retail Technology Funding Count Percentages Shifting to Later-Stage Events As Well

The below graph shows the retail technology funding counts by round as a percentage of total events.

Retail Technology Funding Count Percentages
Retail Technology Funding Count Percentages

This graph supports our previous conclusion from the funding amount graph. In particular, Seed and Series A funding count percentages dropped significantly from 80% to under 50%. The funding count percentages in all other rounds increased by various magnitudes from 2012 to 2017.

Conclusion: Retail Technology Sector Matures As Funding Shifts to Later Stages

In summary, we have seen retail technology funding amounts and events shift from the early-stage rounds to the later-stage rounds. These observations led us to conclude that the retail technology is in the maturing phase.

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

Retail Technology Startup Highlights  – Q1 2018

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.

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

Retail Technology Sector Overview – Q1 2018

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.

Retail Technology Sector Map
Retail Technology Sector Map

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.

Retail Technology Innovation Quadrant
Retail Technology Innovation Quadrant

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.

Retail Technology Total Funding and Company Count by Category
Retail Technology Total Funding and Company Count by 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.

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

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 September 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 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.