Here is our Q2 2018 summary report on the video technology startup sector. The following report includes a sector overview and recent activity.
As we reported last week, the Video Technology sector has seen a lot of funding and exit momentum over the past few years. Yet what are the different components of Video Technology and how do they make up this startup ecosystem? On our Video Technology research platform, we have classified the companies in the sector into functional categories. This blog post examines these categories and how they compare with one another through a series of graphics.
Video Advertising Platforms Is the Largest Video Technology Category
Let’s start off by looking at the Logo Map for the Video Technology sector. As of March 2018, we have classified 828 video tech startups into 11 categories which collectively raised $35 billion in funding. The Logo Map highlights the number of companies in each category and a random sampling of these companies.
We can see from the Logo Map above that Video Advertising Platforms is the largest video tech category with 152 companies. This category is comprised of ad networks that aggregate the supply of publisher inventory, ad servers that facilitate the delivery of ads, and marketplaces that connect ad buyers and sellers. Some example companies in this category include Brightline, Videology, VideoAmp, and Connatix.
We have seen what the different categories in video tech are and how many companies are within each category. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.
The Established Quadrant Has the Most Video Technology Categories
Our Innovation Quadrant for the video tech sector divides the categories within the sector into four different quadrants according to their average funding and average age.
We can see from our Innovation Quadrant above that the Established quadrant has the most video tech categories at 5. The Video Discovery Platforms and Video Analytics Platforms categories are both in the earlier stages of funding and maturity and thus belong in the Pioneers quadrant. The Social Video Platforms and Video Creation Platforms categories have raised more funding and made their way into the Disruptors quadrant. The Video Licensing Platforms and Video Consumption Platforms categories are in the Heavyweights quadrant for having reached maturity with significant financing.
We’ve now seen how the video tech sector is categorized and the relative stages of innovation for those categories. How do these categories stack up against one another in a holistic view? Let’s look at the Total Funding and Company Count Graph.
Video Consumption Platforms Startups Have the Most Funding
The graph below shows the total amount of venture funding and company count in each Video Technology category.
We can see from the graph above that while Video Advertising Platforms has the most companies in the video tech sector with 152 companies, it’s the Video Consumption Platforms category that leads the sector in total funding with around $10 billion. The Video Consumption Platforms category is comprised of companies that enable users to consume television or video content through the Internet and across multiple screens. Some example companies in this category include Hulu, Dailymotion, Metacafe, and Tubi TV.
Conclusion: Some Video Technology Categories Have Matured; Others Have Large Growth Potential
The graphics above indicate that some Video Technology categories have matured, while others still have large growth potential in their funding and maturity. It will be interesting to see how this sector turns out in 2018.
What are your thoughts on this? Let us know in the comments section below.