As we previously noted, marketing technology funding has remained stable over the past few years. Digging in deeper at the martech category level reveals that the Marketing Platforms category leads both in Q3 and overall funding.
We’ll highlight this observation with some graphics and discussions below.
The Marketing Platforms Category Leads Marketing Technology In Q3 Funding
To start off, let’s review the amount of funding raised this quarter by each category within marketing technology.
The above graphic highlights that the Marketing Platforms category leads the sector in Q3 funding with $650M. The Mobile Marketing category follows in a close second place with almost $600M in Q3 funding.
Marketing Platform companies enable businesses 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.
The marketing technology sector has seen an abundance of activity over the past few years. The blog post examines the different components of the martech sector and how they make up this startup ecosystem. We will illustrate what the major sector categories are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
Marketing Automation Software Is the Largest Martech Category
Let’s start off by looking at the Sector Map. We have classified 1801 martech startups into 15 categories that have raised $37 billion. 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 Automation Software is the largest category with 284 companies. These companies enable marketers to automate or enhance the process of inbound and outbound marketing. Some example companies are Sailthru, Infusionsoft, Tinyclues, and Salesfusion.
Here is our Q3 2018 summary report on the marketing technology startup sector. The following report includes a sector overview and recent activity.
The Marketing Technology (martech) sector has seen a lot of venture capital funding over the past few years. How have its funding trends evolved over time? On our martech research platform, we have analyzed the data through 2017 and can conclude that the investments in martech have become fewer in frequency but larger in amount.
We have come to this conclusion from the following three takeaways:
- Martech funding amounts are on a general upward trend at the annual level
- Martech funding event counts have seen a decline in recent years
- Martech average funding event size has been growing consistently
We will illustrate these takeaways with a series of graphics to show the trend of martech investments over time.
Martech Funding Amounts on Upward Trend Annually
We will start off by examining the martech funding trends over the years stacked by quarter.
This graph illustrates that martech funding is on a stable upward trend at...