Retail Technology Funding by Round – Q2 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 1595 Retail Technology companies in 22 categories across 56 countries, with a total of $43.2 Billion in funding. Click here to learn more about the full Retail Technology market report.

Retail Technology Startup Market Trends and Insights Q2 2017

Here is our Q2 2017 summary report on the Retail Technology startup sector. The following report includes a startup landscape overview, graphical trends and insights, and recent funding and exit events.

We are currently tracking 1,595 Retail Technology companies in 22 categories across 56 countries, with a total of $43 Billion in funding. Click here to learn more about the full Insurance Technology market report.

Retail Technology Activity by Selected Investors – Q2 2017

The following graph summarizes investor activity in the Retail Technology space. Please note these graphics are made using data through April 2017.

Retail Technology Q2 2017 Investor Activity

The above analysis summarizes the total number of investment rounds Retail Technology investors participated in, and the number of unique companies funded by selected investors. Major investors include Sequoia Capital, 500 Startups, SV Angel, Accel Partners, and GV.

We are currently tracking 1,589 Retail Technology companies in 22 categories across 56 countries, with a total of $42 Billion in funding. Click here to learn more about the full Retail Technology market report.

Retail Technology Market Overview and Innovation Quadrant – Q2 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 April 2017.

Retail Technology Q2 2017 Logo Map

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

Retail Technology Q2 2017 Innovation Quadrant

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Retail Technology 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 Technology 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 help developers increase functionality in their existing products (e.g. payment integration), create applications (e.g. mobile apps, websites), etc.

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, tailored rewards based on spending, etc.

Made-to-Measure Customization: Companies that use proprietary technologies and supply chain processes to enable shoppers to create custom goods.

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 with 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).

Produce 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 e-commerce functions.

We are currently tracking 1,588 Retail Technology companies in 22 categories across 56 countries, with a total of $42 Billion in funding. Click here to learn more about the full Retail Technology startup market report.

Venture Investing in Retail Technology – Q1 2017

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

Retail Technology Venture Investing Q1 2017

The above graph compares the total venture funding in each Retail Technology category to the number of companies in the category. The Point Of Sale (POS) Payments category takes the lead in both metrics, with around $8B in funding and about 180 startups.

Retail Tech Q1 2017 Average Category Funding

The above analysis summarizes the average company funding in each Retail Technology category. The Local Daily Deals category leads the sector with just under $120M in average funding per company, followed by the POS Payments and In-Store Experience categories.

We are currently tracking 1,573 Retail Technology companies in 22 categories across 56 countries, with a total of $39B in funding. Click here to learn more about the full Retail Technology market report.

Average and Median Age by Retail Technology Category – Q1 2017

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

Average and Median Age by Retail Tech Category
Average and Median Age by Retail Tech Category

The above graph summarizes the average age and median age of companies in each Retail Technology category. The Local Daily Deals category ranks as the most mature Retail Technology category with an average age of around 11 years and a median age of 7 years. Made to Measure Customization comes in as the second oldest category, with a average age of 10 and a median age of 7 years.

We are currently tracking 1569 Retail Technology companies in 22 categories across 57 countries, with a total of $38.5 Billion in funding. Click here to learn more about the full Retail Technology market report.

Where in the world are Retail Technology startups? Q1 2017

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

Retail Technology Company Count by Country Q1 2017

The above map shows the number of Retail Technology companies located in different countries. The United States ranks as the top country with around 880 companies.

Retail Technology VC Funding by Country Q1 2017

The above map shows the amount of total Retail Technology startup venture capital funding in different countries. The United States has the most VC funding at around $24B.

We are currently tracking 1,559 Retail Technology companies in 22 categories across 57 countries, with a total of $38B in funding. Click here to learn more about the full Retail Technology landscape report and database.