MarTech Advisor Releases Proprietary Investscape 2017 Summarizing Q1 Martech Investments

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…

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