Retail Technology Q2 Update in 15 Visuals

Venture Scanner

We at Venture Scanner are tracking 1295 Retail Technology companies across 22 categories, with a combined funding amount of $27.5 Billion. The 15 visuals below summarize the current state of Retail Technology.

1. Retail Technology Market Overview

 

We organize Retail Technolog into the 22 categories listed below:

Automated Personalization Platforms: Companies that work with retailers to optimize sales for different users. Examples include delivering custom ads, allowing for A/B testing, and platforms that tailor websites to each individual user's specific tastes.

Coupons: Companies that focus on providing both traditional and digital merchant coupons. Examples include companies that create merchant-specific coupons as well as coupon aggregating websites.

Data and Analytics: These companies help with the acquisition, organization, and distribution of data that retailers can then utilize to enhance their products and service offerings. Examples Include consumer data tracking from ecommerce websites as well as mobile applications.

Infrastructure and Enablers: Products and tools designed to help developers increase the functionality of their existing products and to create mobile applications. Examples include payment integration tools as well as tools to create ecoomerce mobile apps and websites.

In-Store Experience: Companies and tools that help brick and mortar retailers to enhance the customer journey in stores. Examples include digital engagement tools (i.e. beacons), mobile-first initiatives and gamification.

In-Store Management: Applications that aim to improve the productivity of brick and mortar sales associates. Examples include productivity apps that track employee 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. Examples include innovators in long distance shipping as well as local delivery.

Local Advertising Technology: Companies that advertise local retail products or services to consumers. Examples include customer targeted ads, real-time mobile ads, 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 includes daily deal aggregators and flash sale marketplaces.

Local Incentives: These companies help stores increase loyalty, customer base, and revenue from both new and repeat customers by providing customers incetives to purchase. Examples include incetivized discounts, frequency rewards, and gamified badges.

Made-to-Measure Customization: Made-to-Measure Customization companies use proprietary technologies and supply chain processes to enable shoppers to create custom goods. Examples include companies that offer custom made clothing and custom designed jewlery.

Marketing Platforms and Customer Relationship Management: Products that enable merchants/brands to engage with their customers across social media channels, and execute and manage marketing campaigns. Examples include retailer-specific customer relationship management tools used to improve customer communication, tracking, and overall relations.

Online to Offline Payments: Technologies and services that allow items purchased online to be picked up and returned at a physical stores, and technologies that allow customers to place orders online while at a physical store. Examples include companies that provide consumers with mobile wallets and other digital storage functionality such as digital receipts.

Physical Store Analytics and Indoor Mapping: Using sensors, cameras, and mobile devices to provide retailers more data about customer behavior in-store. Examples include becaons and other devices that track window conversion rates, customer dwell times, optimal shelf placement, and ideal store hours. 

Point of Sale Payments: Payment companies centered around 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: Services that allow consumers to compare product prices at different outlets or compare features across similar products. Examples include scanning and engagement capabilities for QR codes and bar codes that bring up product information and comparisons in real-time.

Product Recommendation: Product 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. Examples include integrations to email newsletters as well as integrations to retailer websites.

Retail Augmented Reality: Companies that enable consumers to interact with products using augmented reality. An example includes mobile apps that provide embedded information on products after customers take photos of the product.

Retargeting: Retargeting companies use cookie data to follow online users and serve dynamic, relevant ads all over the web. Examples include retargeting on other wesbites as well as retagreting on social media apps.

Search and Local Availability: The companies in this category provide the means by which consumers can search and/or compare local availability of products and prices. This category includes store-level inventory searches and local product comparisons.

Social Discovery: Platforms that allow for discovery of products through social sharing and location check-ins. Examples include discovery social networks for as well as platforms with integrated ecommerce functions.​

2. Company Count by Retail Technology Category

The above graph summarizes the number of companies in each Retail Technology category. The In-Store Experience category is leading the way with 150 companies, followed by the Point of Sale Payments category with 134 companies.

3. Funding by Retail Technology Category

 

The above graph summarizes the total amount of funding in each Retail Technology category. The Point of Sale Payments category is leading the market with over $5.8B in total funding, followed by the Last Mile Logistics category with $4.6B in total funding.

4. Venture Investing In Retail Technology

 

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 Payments category is leading in the Total Funding stat with over $5.8B, whereas the In-Store Experience category is leading in the Company Count stat with 150 companies.

5. Retail Technology Total Funding by Year

 

The above graph summarizes the total funding raised by Retail Technology companies each year. 2014 was the best year in Retail Technology funding thus far with over $12.5B raised, followd by 2015 which saw $8B in funding.

6. Average Funding by Retail Technology Category

 

The above graph summarizes the average company funding in each Retail Technology. The Local Daily Deals category leads the market with over $131M in funding per company, followed by the POS category with over $65M in funding per company. In these two categories a few key Retail Technology players such as Groupon, Square, and LivingSocial each raised over $500M to date.

7. Average Age by Retail Technology Category

 

The above graph summarizes the average age of companies in each Retail Technology category. Local Daily Deals ranks as the most mature Retail Technology category with an average age of 10 years per company, followed by the Made-to-Measure Customization category with an average age of 9 years per company. We included a few established companies that are still innovating in these categories, which explains their relative maturity.

8. Median Age by Retail Technology Category

 

The above graph summarizes the median age of companies in each Retail Technology category. Local Incentives ranks as the most mature Retail Technology category with a median age of over 10 years per company, followed by the Point of Sale category with a median age of over 9 years per company. We included a few established companies that are still innovating in these categories, which explains their relative maturity.

9. Retail Technology Company Count by Country

 

The above map shows the number of Retail Technology companies located in different countries. The United States ranks as the top country with 875 Retail Technology companies.

10. Retail Technology VC Funding by Country

 

The above map shows the amount of Retail Technology venture capital funding in different countries. The United States leads with $25.7B, with the United Kingdom coming in at a distant second with $4B.

11. Retail Technology Companies Founded by Year

 

The above graph summarizes the number of Retail Technology companies founded in a certain year. 2011 ranks as the top year with 231 Retail Technology companies founded, with 2012 in second place with 215 Retail Technology companies founded.

12. Retail Technology Funding by Vintage Year

 

The above graph summarizes the total amount of funding raised by the Retail Technology companies founded in a certain year. Retail Technology companies founded in 2009 have raised the most funding at $5.1B, followed by those founded in 2011 which have raised $4.1B. 

13. Retail Technology Headcount Distribution

 

The above graph summarizes the percentage of Retail Technology companies with a certain employee headcount range. Companies with under 100 employees make up about 75% of the market.

14. Number of Retail Technology Investments by Selected Investors

The above graph summarizes the total number of investment rounds Retail Technology investors participated in. Accel outperformed all of its peers, having made 92 investments into Retail Technology companies. Y Ventures is the runner-up with 85 investments.

15. Number of Retail Technology Companies Backed by Selected Investors

 

The above graph summarizes the number of unique Retail Technology companies funded by selected investors. Accel takes the top spot again by having invested in a total of 62 unique Retail Technology companies, followed by Y ventures which has invested in 49 unique Retail Technology companies.

Venture Scanner is your analyst and technology powered startup research firm. If you would like access to the full Retail Technology landscape report and data, visit https://www.venturescanner.com/retail-technology or reach out to [email protected].

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