MarTech Advisor Releases Proprietary Investscape 2017 Summarizing Q1 Martech Investments

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The report details the $1.5 billion invested across 95 Marketing Technology companies in Q1 2017.

MarTech Advisor, the world’s leading resource for marketing technology related news, research, product comparisons and expert views, on April 7th released their exclusive Q1 2017 Investscape that analyzes venture funding in the martech space. Identifying the top 10 companies receiving major investments and the top categories that equity players have shown interest in, the data is a useful ready reckoner for B2B enterprise marketers as they plan their marketing technology purchase decisions.

When compared to Q1 ’16, Q1 ’17 witnessed a 29% drop in VC funding from $2.24 billion in Q1 last year to a moderate figure of $1.59 billion. The kinds of categories invested in and the average amount invested in each has reduced, even though the number of VCs actively investing have gone up from 90-plus firms to 200-plus equity ventures diversifying into this booming tech sector. So far, 2017 has seen select martech companies capture niche, micro-landscapes, while helping enterprises take giant steps in their customer fulfillment journey.

Speaking about how this dip in the industry investment will work for companies, Ajay Agarwal, Managing Director, Bay Area for Bain Capital Ventures said, “Starting in 2011, due to a number of factors such as: the growth in ecommerce, consumer adoption of mobile technology, and the rise of big data, we saw a dramatic increase in the dollars invested behind martech companies. The recent decline is reflective of the fact that this sector has become overfunded (like almost every other application category). As a result, martech is entering a new phase where the scaled venture-backed companies will be leveraging their mass and their cash in order to consolidate the industry and expand their footprints. We have seen this already within the BCV portfolio with our larger martech companies such as SurveyMonkey, SendGrid, BloomReach, and Infoscout all making acquisitions of various sizes. We expect this trend to continue and this will be beneficial for CMOs who are looking to purchase from a smaller set of vendors.”

This quarter’s Investscape also highlights how martech innovation has gone past adolescence and is now a global industry, not restricted just to the US. Even though the maximum investment of up to 73% was concentrated in North America, companies from countries like China, UK, India and Europe made their presence felt with 27% of the funded companies headquartered outside the US.

Robin Duan, Founder and CEO of Mobvista, one of the top 10 companies to have received a huge funding and based out of Fujian, China, shared his thoughts on how ROW (Rest of World) martech companies like Mobvista are moving the compass to grow the martech industry by the turn of this decade. Duan says, “APAC is playing a crucial role in the industry, both in terms of demand and supply. We have built the supply chain based in APAC with a monthly active audience of over a billion across the globe from our SDK. China is the second largest market of ad spending, with worldwide top high tech companies like Alibaba, Tencent and Baidu, which are producing more and more high quality engineers and product talents. The ROW martech companies have the ambitions and aspirations to provide services to not only APAC but also western advertisers. Besides this, technological advancements in ad tech products has caught VC attention to move from the US to companies across the globe. Martech companies like Mobvista are bound to innovate more than those in the US, which indicates the comparably more potential growth.”

For Industry analysts and thought leaders the Investscape offers unique insights that help dissect trends and nuances in the business of martech.

Marketing Automation, Mobile Marketing, Sales Enablement, Social Media Marketing, Events & Webinars are all categories funded in Q1 ’17 that didn’t figure in the top 10 funded categories of 2016.

Industry Analyst, David Raab, Principal at Raab Associates shares his thoughts on the 2017 Q1 Investscape, “It’s tremendously useful to have someone pull together statistics on funding by category and to show trends over time. As an analyst, I need the “big picture” that tools like the Investscape provide to put individual products in perspective. I’m sure marketers feel the same way.”

Keeping in mind MarTech Advisor’s raison d’etre of ‘Helping Marketers Succeed’, the MarTech Advisor Q1 2017 Investscape has been made more visually interactive, downloadable and eminently shareable. Get your copy here

About MarTech Advisor
MarTech Advisor is one of the fastest growing media properties providing unbiased news, industry research, software recommendations, and aggregated job opportunities for marketing professionals. Our community, of over a million professionals, includes highly engaged thought leaders (read: CMOs and marketing experts) that regularly contribute and participate on MarTech Advisor.
Leading Marketing Technology brands like Salesforce, IBM, Sharpspring partner with MarTech Advisor to reach these highly engaged audiences and drive improved marketing performance across the funnel.

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