For this quarter's funding analysis, let's examine how average funding in the marketing technology (martech) sector is evolving. The graphic below shows the martech average funding across all deals over time by quarter.
As the graphic demonstrates, marketing technology average funding deal size in Q1 2019 was at $55M, which decreased by 31% from the $80M last quarter. The average funding deal size has demonstrated accelerated growth, with the average funding last quarter around 8 times larger than it was 5 years ago. The top three funding events in Q1 2019 include a $175M round into Meltwater, a $70M round into Medallia, and a $55M round into Trustpilot.
This blog post examines the different components of the marketing technology (martech) ecosystem. We will illustrate what the categories of innovation 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 Marketing Technology Category
Let's start off by looking at the Sector Map. We have classified 1,833 martech startups into 15 categories. They have raised $44B from 2,417 investors. 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 287 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.
Let's now look at our Innovation Quadrant to find out the funding and maturity of...
The marketing technology (martech) industry has seen $44B in total all time funding. Let's examine the investors financing the martech sector and identify the most active firms.
The graphic below highlights martech investors based on the number of investments made in the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this analysis.
As the graphic demonstrates, 500 Startups has made the most investments in the martech sector with 81 investments. Techstars follows with 65 investments. Examples of companies that 500 Startups has invested in include Carousell, SendGrid, and ToutApp. Salesforce Ventures is a notable Corporate Venture Capitalist (CVC) on the list.
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...