annual investscape report analyzing the $8.8 billion · 2018-10-27 · q2 - $2.4bn q3 - $2.4bn q4 -...
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Analyzing the $8.8 BillionInvested Across 400+ MarketingTechnology Companies
ANNUAL INVESTSCAPE REPORT 2017
© 2018 All Rights Reserved. MarTech Advisor.
TABLE OF CONTENTS
1.1 Annual Investscape 2017
Annual Investscape 2017 Page 1 to 6
PART
The Big Picture
2.1 Graphs & Charts
2.2 Commentary
2.3 Investor Round Table
Page 7 to 15
PART
Annual Recap 2017 Page 16 to 17
3.1 Quarterly Investscape Reports: Q1, Q2, Q3, and Q4
PART
About MarTech Advisor Page 18
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor.
PART
Annual Investscape 2017Part 1
© 2018 All Rights Reserved. MarTech Advisor.
VC investmentsin MarTech
went down by 37% - from
$14.5Bn in 2016to $8.8Bn
in 2017
Q-on-Q investmentsQ1 - $1.5BnQ2 - $2.4BnQ3 - $2.4BnQ4 - $2.3Bn
Total share of investments in USA
based MarTech companies was 80.8% whereas, 19.2% was
invested in ROW MarTech
companies
700+ Investors invested in more
than 400 MarTech companies across
40 categories in 2017
Mobile Marke�ng,
Ecommerce and Sales Enablement
are the top funded categories
of 2017
QUICK 5: REVIEW
2017
The highest number
of investments by any one VC in
MarTech (Salesforce Ventures)
15
Share of Companies
Funded that are not
from USA
New unicorns blazed into
the MarTech space
19.2% 19
1.1 Annual Investscape 2017
Year In Numbers – 2017
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 1
Year-on Year Growth in Funding 2014 to 2017(Figures in Billions)
Q1 Q2 Q3 Q4
2014
2015
2016
2017
0.99 2.04 1.20 1.68
2.16 2.07 2.42 1.30
2.24 5.10 2.83 3.87
1.59 2.42 2.45 2.33
5.92
7.96
14.05
8.81
Top MarTech Categories Funded in 2017(Figures in Millions)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Mobile Marke�ng
E-Commerce
Sales Enablement
Loyalty/Referral/Gamifica�on
Social Media Marke�ng
Events & Webinars
Web & Mobile Analy�cs
BI, CI & Data Science
Marke�ng Automa�on/Campaign & Lead Mgmt
Display & Na�ve Adver�sing
Asset & Resource Management
Communi�es & Reviews
Customer Experience/VoC
Mobile App Dev & Marke�ng
Web Content/Experience Management
986.1
600.5
531.6
453.3
433.1
418.4
407.9
384.8
374.7
368.1
364.0
303.9
296.7
293.1
236.8
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 2
$
$
$
$
$
$
$
$
$
$
$
AppLovin
Unity Technologies
Slack
Magento
Squarespace
Qualtrics
MediaMath
Zeta Global
Fuze
Domo
Mobvista
Zoom
InVision
841
400
250
250
200
180
175
150
140
104
100
$ 200
$
$
$
100
100
100
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 3
Top MarTech Companies Funded in 2017(Figures in Millions)
Most Ac�ve Investors of 2017
Numbers represent the frequency of funding by a VC in the yearThe logos used are purely for representa�on purpose
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 4
15 11
8 7 7
6 6 6 6
6 5 5 3
3 3 3 3
3 3
5
3
3 3
Geographical Split by Origin of the Funded Companies(Percentage based representa�on)
United States ROW
81%
19%
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 5
Company Funded in Quarter2017
Category HQ Loca�on
Anaplan
Ap�us
Docker
Domo
Eventbrite
InsideSales.com
InVision
Kik
MarkLogic
MediaMath
Qualtrics
Quora
Slack
Sprinklr
Squarespace
Unity Technologies
Zoom
Q4
Q3
Q2, Q3, Q4
Q2
Q3
Q1
Q4
Q3
Q2
Q2
Q2
Q2
Q2
Q3
Q3
Q1
Q4
Q2
Q1
Cloud/IaaS/PaaS
CRM
Web Development
Dashboards And Visualiza�on
Events & Webinars
Sales Enablement
Asset & Resource Management
Personaliza�on & Chat
DMP/ CDP
Social Media Marke�ng
Events & Webinars
Customer Experience
Social Media Marke�ng
Social Media Marke�ng
Asset & Resource Management
Social Media Marke�ng
Web Content/Experience Management
Mobile App Dev & Marke�ng
Events & Webinars
United States
United States
United States
United States
United States
United States
Switzerland
Canada
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
Unicorns Funded in 2017
MTA Rank(based on funding amount)
Company Name
1
2
3
4
5
6
7
8
9
10
AppLovin
Unity Technologies
Slack
Magento
Squarespace
Qualtrics
MediaMath
Zeta Global
Funding in 2017(In $ Millions)
841
400
250
250
200
200
180
175
150
140
No. of Funding Rounds un�l 2017
3
6
10
2
3
3
3
7
13
5
Top 10 Companies of 2017
Moved Up Moved Down New Entry Stayed Same
MTA Rank(based on funding amount)
Category Name
1
2
3
4
5
6
7
8
9
10
Mobile Marke�ng
E-Commerce
Sales Enablement
Loyalty/Referral/Gamifica�on
Social Media Marke�ng
Events & Webinars
Web & Mobile Analy�cs
BI, CI & Data Science
Marke�ng Automa�on
Display & Na�ve Adver�sing
Funding in 2017(In $ Millions)
986.1
600.54
531.61
453.293
433.086
418.42
407.87
384.8
374.704163
368.14
Movement from 2016
Top 10 Categories of 2017
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 6
© 2018 All Rights Reserved. MarTech Advisor.
The Big PicturePart 2
Top Categories Funded 2014-2017(Figures in Millions)
0.0 500.0 1000.0 1500.0
Web & Mobile Analy�cs
Marke�ng Environment
Display & Na�ve Adver�sing
Web & Mobile Analy�cs
Display & Na�ve Adver�sing
Data Management Pla�orms/Customer Data Pla�orms
Web & Mobile Analy�cs
Iden�ty
CRM
E-Commerce
Mobile Marke�ng
Sales Enablement
2000.0 2500.0
2014
2015
2016
2017
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 7
2.1 Graphs & Charts
$686
$869
$323
$1165
$641
$421
$2272
$2500
$1320
$601
$986
$532
Top Companies Funded 2014-2017(Figures in Millions)
Sabre Corpora�on
SnapChat
SurveyMonkey
SnapChat
Domo
Infor
SnapChat
Apple
AppLovin
Unity Technologies
Slack
2014 2015 2016 2017
$645
$485
$250
$553 $537
$235
$2500
$1975
$1000
$841
$400
$250
Geographical Split 2014-2017
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 8
0 5 10 15
2014
2015
2016
2017
Sequoia Capital
Accel Partners
500 Startups
Sequoia Capital
Salesforce Ventures
Ba�ery Ventures
Salesforce Ventures
New Enterprise Associates
Ba�ery Ventures
Salesforce Ventures
Accel Partners
Y Combinator
United States ROW
2014 2015 2016 2017
94% 91% 95% 82%
6% 9% 5% 18%
13
11
10
14
11
8
12
11
11
15
11
8
Top Investors 2014-2017Numbers represent the frequency of funding by a VC in the quarter
Compara�ve Table From 2014 To 2017
Total Funds Invested
Total No. Of Companies Funded
Total No Of Categories Funded
$14.05 Bn
365
41
$8.81 Bn
405
40
$5.92 Bn
350
42
$7.96 Bn
220
42
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 9
2014 2015 2016 2017
Top 3 Categories Funded • BI, CI & Data Science• Social Media Network• Social Media Marke�ng
• Social Media Network• Web & Mobile Analy�cs• Display & Na�ve Adver�sing
• Pla�orm / Suite• Social Media Network• Mobile App Dev & Marke�ng
• Mobile Marke�ng• E-Commerce• Sales Enablement
Top 3 Companies Funded(figures In Million)
• Sabre Corpora�on ($645.5 Mn)• SnapChat ($485Mn)• SurveyMonkey ($250 Mn)
• Pinterest ($553 Mn)• SnapChat ($538 Mn)• Domo ($235 Mn)
• Infor ($2.5 Bn)• SnapChat ($1.9 Bn)• Apple ($1.0 Bn)
• AppLovin ($841 Mn)• Unity Technologies ($400 Mn)• Slack ($250 Mn)
Top 3 Investors(no. Of Times Funded)
• Sequoia Capital (14)• Accel Partners (13)• Ba�ery Ventures (10)
• Sequoia Capital (14)• Accel Partners (13)• Ba�ery Ventures (10)
• Salesforce Ventures (12)• Ba�ery Ventures (11)• New Enterprise Associates (11)
• Salesforce Ventures (15)• Accel Partners (11)• Y Combinator (8)
Top 3 Countries Funded • United States• United Kingdom• Canada
• United States• Canada• United Kingdom
• United States• United Kingdom• France
• United States• Denmark• United Kingdom
US/ ROW Split 90:10 80:20 70:30 80:20
The ‘seamless customer experience’ is emerging as
the holy grail of marke�ng. And this cannot be
achieved without marke�ng technology. Because the
customer lives equally online and offline, the purpose
of marke�ng technology is increasingly to bring
together all the moving parts, all the touchpoints, all
the data and intelligence – and deliver that seamless
brand experience.
This throws up a couple of considera�ons for the
CMO.
— All the investments in martech point solu�ons
become problema�c if they cannot meaningfully
talk to one another. So, there is a huge need for
solu�ons capable of delivering new models of
integra�on. From retroac�vely integra�ng point
solu�ons to central data hubs; from APIs to
hybrid models – integra�on is the new game in
town. And a logical outcome of that is going to be
‘stack ra�onaliza�on’.
— Customers are moving to mobile, period. From
mobile-also, to mobile-first, to mobile-only
seems the inevitable reality of how customers
will want to engage with brands. CMOs need to
be prepared for this future and need to ensure
their many investments can help deliver on that
future.
— The offline customer experience is an integral
part of the ‘seamless’ experience, so the
technology needs to lend itself beyond digital
applica�ons and direct interac�ons with
customers – right down to in-store experiences,
partner and service experiences, payment and
billing experiences among others.
When we viewed VC investments in Martech in 2017
against this context, we made a few observa�ons. But
before that, here are some of the highlights from the
2017 report:
— Mobile Marke�ng, though at number 1 spot in
terms of most funded category – just shy of a
billion dollars – went there because of a single
large investment in AppLovin ($841Mn)- not
surprisingly a mobile apps company.
— Other top funded martech companies
were, Unity Technologies ($400Mn; gaming
technology), Slack ($250Mn; collabora�on and
project management), Magento ($250Mn;
ecommerce enabler), Reddit (Community) and
Squarespace (Website and UX) with $200Mn of
funding each.
— Docker (containers) and Datarobot (machine
learning and predic�ve modeling) got funded
twice in 2017 with a total haul of $137Mn and
$121Mn respec�vely.
— The most common type of funding in 2017 was
Venture Capital funding
— Salesforce Ventures appeared as the top investor
for the second consecu�ve year. They have
invested 15 �mes in mul�ple martech categories
in 2017. They are also the top investor of Q4
2017, with 4 investments for companies in
different categories.
— Other top investors of 2017 who have invested
more than 7 or more �mes are Accel Partners
(11), Y Combinator (8), New Enterprise
Associates and Silicon Valley Bank (7 �mes each).
— Martech companies from USA contributed
80.8% of the total funding in 2017, whereas,
martech companies from ROW received 19.2% of
funding
— In Q4 martech companies received $2.3Bn of
funding. But it was United Kingdom that received
the highest funding, a�er United States, in Q4-
2017.
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 10
2.2 Commentary
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
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MarTech Industry Trends
As we started to pull this report together, we were
struck by the 37% dip in total investments in martech
from 2016 (which was a really good year at $14
billion). But if you look at the pa�ern over the last 7
years, martech investments have been up-and-down.
This is not unusual for a dynamic and evolving market,
where the trends change as fast as customer
understanding and adop�on, and nearly as fast as the
disrup�ons and innova�ons the space sees. The
observa�ons we found noteworthy, in the VC funding
context were:
1. The changing focus of investments: the first
several years from 2010 onwards saw majority of
the funding in ‘social networks’ or internet
companies that had unrestricted access to
‘poten�al customers’ - from Facebook to
Snapchat and Pintrest. One of the major shi�s in
the later years seems to be the funding for more
‘specialist’ martech areas that are also point
solu�ons (such as email marke�ng, social media
analy�cs or interac�ve marke�ng technology) –
somewhat valida�ng the explosion of point
solu�ons in the martech space from 100+ to over
5000. Come 2018, could we see another shi�? A
shi� towards companies that provide integrated
solu�ons (go beyond stand-alone point
solu�ons), support integra�on as a core part of
what they do or are into one of the more obvious
technologies of the near future such as
mobile, data, AI/ machine learning and
predic�ve/prescrip�ve analy�cs?
2. Innova�on in funding - A healthy funding
ecosystem makes a healthy industry With all the
talk of the martech VC funding apocalypse: the
ques�on is - what might be the outcomes of such
an event? Roughly half the companies on Sco�
Brinker’s landscape have had some form of VC
funding, even though many of them will probably
never make their investors much money. That
also means more than half did not have VC funding -
yet, the a�ri�on rate has been insignificant from
last year to this. Sure, some amount of funding will
dry up, and some will shi� to the more a�rac�ve
martech categories (mobile, madtech, analy�cs
and machine learning/AI). But that doesn’t mean
that martech itself will face an uncertain future.
Instead, we will probably see innova�on in
funding models, more disrup�on coming from
small, independent players (the ‘long-tail’ of
the industry and more integra�on - driven
solu�ons that can s�tch together the various
solu�ons seamlessly. In a conversa�on with
Martech Advisor, Sco� Brinker said, The
classic VC model is built around consolidated
winners. There will s�ll be new opportuni�es for
those kinds of martech companies in the future
— I'm quite certain that major disrup�ons in
marke�ng and sales are not done with for this
century. But the vast majority of martech
startups are not going to fit that model. They
need alternate financing models, and luckily,
there are quite a few of those: angels, incubators,
crowdfunding, bootstrapping, micro-VCs, ICOs,
etc.”
Anand Thaker, CEO and Founder, Intelliphi, who
heralds from the financial investment arena
himself, shares this perspec�ve on the 37%
decline in overall martech funds from last year:
The "Long Tail" of Marke�ng Technology
Source: h�p://chiefmartec.com
a few $1 billion+ giants
dozens to hundreds of$100 million+ leaders
thousands of < $100 million niche innovators, ver�cal specialists, and new challengers
This looks like the classic distribu�on of choices in an open digital pla�orm.
reve
nu
e/m
arke
t sh
are
marke�ng technology products
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
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“High-growth funding general ly can be
viewed from perspec�ves of opportunity cost,
availability, appe�te and investment experience
in the marketplace.
One possibility is that other opportuni�es have
been compe�ng for mindshare and wallet-share
of investors. We are seeing more investment into
innova�on and tech enablement in the physical
spaces. Healthcare, energy, agriculture, finance,
security just to name a few.
Another trend is VCs are taking on fewer, but
larger size deals. Deal flow has been intense.
Investors are wai�ng for maturing later stages
companies and larger valua�ons. Also, VCs are
wai�ng to evaluate addi�onal rounds of current
por�olio companies and support more resilient
growth for them. Like marketers, the choices for
investors are abound.
On the flipside, entrepreneurs are considering
bootstrapping and/or wai�ng to evaluate taking
on VC funding. Founders are seeking investors
who can bring support beyond the money to the
table and may turn to alternate sources of
funding.
We could be experiencing the calm eye of the
storm in MarTech investment.”
3. Unicorns and the race to $5 billion: We
witnessed 19 unicorns emerge in 2017 – up from
7 in 2016. So will 2018 see the rise of the
$5billion dollar martech company? Says Sco�,
“Salesforce, Adobe, IBM — these are all
companies with billions of dollars in revenue in
the broad field of marke�ng and sales
technology. If we're just talking about valua�on,
not revenue, [HubSpot} is a public marke�ng and
sales technology company currently valued at
over $3 billion. I'd also contend that Google and
Facebook should be interpreted as new kinds of
marke�ng companies. A�er all, that's how they
make almost of all their money: by enabling
marke�ng to individuals in ways that were never
before possible. They're something very
different than merely media distribu�on pipes,
the way we thought of classic adver�sing
channels such as TV. There's incredible data and
so�ware intelligence being applied here. But
why not more $5 billion pure martech solu�ons
companies? Three reasons to consider: (1) the
environment in which marke�ng and sales is
opera�ng is s�ll changing, which favors
disruptors and innovators; (2) marketers are in
the business of seeking to differen�ate their
firms, which means they're always looking for
differen�ated capabili�es; and (3) the low
barriers to entry in so�ware these days make it
feasible for thousands of entrepreneurs to
pursue their ideas for addressing the first two.
4. The implica�ons of consolida�on: as the
famous MarTech Landscape graphic shows, the
space is ge�ng more crowded than ever with
over 4800 companies flooding the market with
5000+ solu�ons. But does this necessarily imply
it’s also ge�ng more fragmented and more point
solu�on based than ever – or are there new
models of consolida�on that could emerge?
Doug Pepper - Managing Director, Shasta
Ventures says: For the start-up market, we
predict that a strong economy and the lower
overall corporate tax rate will likely mean more
(and more successful) IPOs and robust stock
valua�ons. In addi�on, the trending favorable
public market stock prices combined with tech
companies’ already large reserves of cash point
toward a strong M&A market in 2018.
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Sco� brings a different perspec�ve with this
c o m m e n t “ t h e m a r t e c h l a n d s c a p e i s
simultaneously consolida�ng and fragmen�ng.
Look at it through a revenue distribu�on curve.
It's a long tail with a few mul�-billion dollar giants
at the head, several hundred companies above
$20 million but below $1 billion that are leaders
in their respec�ve categories or ver�cals, and
then thousands of sub-$20 million startups,
special ists, and hybrid service-so�ware
providers. It's analogous to the film industry.
Huge consolida�on around major studios and
their big blockbusters. But simultaneously a
crea�ve explosion of new video ar�sts as
independents, leveraging YouTube, Ne�lix, and
Amazon as enablers to reach their niche
audience with specialized content. In both
instances, consolidated "pla�orms" help more
long-tail specialists thrive.
5. The integra�on wave: going back to the ques�on of
seamless customer experiences, there seems an
urgent need for stack ra�onaliza�on; meaningful
integra�on across the ac�ve stack; and smoother
data storage, transforma�on and flow across stack
components. From ‘everything you need’ pla�orms
(which was never a realis�c proposi�on), we are
moving towards a new kind of full-spectrum pla�orm
- we like to call them ‘enabling pla�orms’ - that
embrace and encourage integra�on across mul�ple
players. This model - somewhat reminiscent of the
Apps Marketplace model - is the way forward for a
sustainable future. Integra�on with other systems –
billing systems, customer support and success,
maintenance, in-store – is also increasingly crucial for
the seamless customer experience. For VC’s, this
means interest in solu�ons that encourage and
embrace integra�on with the ecosystem of solu�ons,
including APIs technology; data integra�on solu�ons
such as CDPs; as well as mul�ple smaller players that
have the ability to go mainstream if plugged into one
of the larger enabling pla�orms.
Source: h�p://chiefmartec.com
We asked some of the investors featured in the
Annual Investscape 2017 to weigh in with their
comments on what they look for in poten�al
investees, and what they were interested in for 2018.
Here are some edited excepts:
ON POTENTIAL INVESTEES
Ma� Garra�, Vice President, Salesforce Ventures
(Invested in Anaplan, Splice Machine, DigitalGenius,
FollowAnaly�cs, MapAnything, Chute, 7Summits,
AutoPilot, CrowdFlower Inc., FullStory, Gainsight,
Highspot, Pendo, Workato, Ap�us)
"Salesforce Ventures is first and foremost, a strategic
investor focused on building the world’s #1 enterprise
cloud ecosystem to extend the power of the
Salesforce pla�orm and help us deliver the next
genera�on of technology for our joint customers.
What compels us to invest in a company is a talented
management team, innova�ve products that extend
our offerings and a large market opportunity.
Companies also need a strong company vision that
will resonate with Salesforce customers."
Tim Kopp, General Partner, Hyde Park Venture
Partners
(Invested in Popular Pays, Terminus, RepIQ,
LookBookHQ Inc., Sigstr)
“To be successful in martech, it's important to stand
out from the crowd. When I invest in martech
companies, I think about the same factors that I did
when I sat in the buyer seat as CMO of ExactTarget.
Companies need to demonstrate these three things: a
clear value proposi�on that drives meaningful ROI,
�me to business value, and a brand that speaks in the
marketplace. Now as a VC, I look for industry-leading
growth, because trac�on solves so many problems. It
can be hard to separate yourself from the noise, and
that is why the value of brand cannot be overstated in
martech.”
Mark Gorenberg, Managing Director, Ze�a Venture
Partners
(Invested in FollowAnaly�cs, InsideSales.com,
Marke�ng Evolu�on)
“Ze�a Venture Partners started in 2013 as the first
firm focused on inves�ng in AI for enterprise. These
are companies that combine proprietary data with
machine learning algorithms and applica�on layer
so�ware. So�ware alone has become commodity.
The data provides the barrier to entry. We only invest
in companies that con�nuously improve results and
insights as more customers are added and more data
is collected. Martech is leading this new intelligence
era and we have now invested in eleven martech-
oriented companies since 2014 that use data to get
insights that lead to higher ROI, faster turnaround of
op�miza�ons, and more personalized results.”
Doug Pepper, Managing Director, Shasta Ventures
(Invested in Leanplum, Aviso, Akoonu, Highspot,
People.ai)
“When we consider a new so�ware investment at
Shasta Ventures, we start with the founding team. We
look for a team that possesses the ins�nct, drive, grit
and obsession to build a category-leading product
and bring it to market. We look for passionate teams
that are building products in a strategic category like
MarTech. And, we look for start-ups that can grow at
scale. In today’s market, it’s no longer enough to have
the poten�al to reach $100 million in revenues. We
need to believe that a company can grow 40-50%,
year over year, while passing the $100 million mark
and that it is in a large category that can support $200-
300 million in revenue. Further, we need to see 300%
growth when a startup is small to believe that high
growth is s�ll possible at scale. While this may sound
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 14
2.3 Investor Roundtable
like a tall order, we’ve been fortunate at Shasta to meet with passionate teams each week who show the poten�al to reach these milestones
ON THE MARTECH CATEGORIES OF INTEREST FOR 2018
Ma� Garra�, Salesforce Ventures
"Salesforce has been democra�zing technology since our founding in 1999, and now we're doing the same with Einstein, the first comprehensive AI for CRM. As we con�nue to accelerate Einstein and AI at Salesforce, we will be looking for complementary Martech technologies that u�lize data science and AI to make marketers’ lives easier by providing orchestra�on across mul�ple apps or create personalized, omnichannel marke�ng journeys."
Tim Kopp, Hyde Park Venture Partners
“Account-based marke�ng is driving one of most revolu�on changes to how marke�ng is done today. It is fundamentally changing how products are bought and sold by focusing more on quality rather than quan�ty and driving 1:1 engagements at scale. I have invested in Terminus, Sigstr, LookBookHQ who all are making ABM a big part of their strategies."
Mark Gorenberg, Ze�a Venture Partners
In 2018, marke�ng solu�ons will require machine learning algorithms and crowdsourced proprietary data that con�nuously trains them. To produce a compe��ve ROI and valuable company, obtaining data usage rights from customers will become as important as retaining so�ware IP rights. To enable intelligent marke�ng, some of the growth areas to watch this year include:
— D ata e n r i c h e rs fo r re a l - � m e b u s i n e s s op�miza�on.
— Predic�ve Analy�cs-enhancements for exis�ng marke�ng solu�ons.
— Mobile app-first driven marke�ng campaigns.
— Instore commerce driven by Computer Vision, NLP, and IOT.
— E-commerce search using NLP and machine- learning improved content.
Doug Pepper, Shasta Ventures
I believe 2018 will finally be the year of the Bot. Bot-powered applica�ons on messaging pla�orms like
Facebook will finally start to gain trac�on in 2018. Gartner predicts that by 2021 more than half of enterprises will spend more per annum on crea�ng Bots and Chatbots than tradi�onal mobile app development.
We all know that user a�en�on is shi�ing away from mobile apps and consumers are spending more and more of their �me in messaging apps like Facebook, Whatsapp and Slack. However, up un�l now, Bot applica�ons on messaging have failed on two fronts: either the consumer experience is poor or there isn’t enough traffic to those applica�ons to move the needle for the enterprise. Both of these problems will be solved in 2018. First, Facebook has commi�ed to driving distribu�on to Bot applica�ons where they’ve seen traffic already improving a�er the addi�on of new discovery features. And second, Bot developers are learning from 1.0 applica�ons and building much higher quality experiences for consumers.
Anand Thaker, MarTech Advisor Category Expert (AI and Big Data) and CEO of Intelliphi
In terms of MarTech investment, the exci�ng areas are:
1. Intelligence Enabled Solu�ons: including AI, NLG, Predic�ve, Bots, Agents, etc..
2.Customer Experience: while this has many orchestra�on tentacles, brand engagement, customer reten�on and community advocacy are cri�cal for both established and innova�ve companies alike.
3. Account Based Solu�ons: enabling be�er internal coordina�on and external orchestra�on on complex, longer sales pipelines.
4 .Customer Data Pla�orms: acquis i�on, management, culture, and privacy around customer data is a fundamental for any of the above to succeed.
5. Bonus opportunity area: privacy / GDPR: There is s�ll plenty we are unsure about how GDPR and similar regula�ons will impact the industry. We will see more marketers loop back with IT on how this can be applied both to prospect and customer data.
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
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Annual Recap 2017Part 3
© 2018 All Rights Reserved. MarTech Advisor.
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 16
3.1 Quarterly Investscape Reports: Q1, Q2, Q3, and Q4(Click on the image to view each Quartery Investscape Infographic of 2017)
Investscape Q1 2017Analyzing the $1.5 Billion MarTech Funding
4 73% 200+The highest number of investments by any one
VC in MarTech(GreyCroft Partners)
Share of companies funded that are from
USA
200+ VCs invested in 95 MarTech companies
across 30 categories in JFM 2017
Quarter in numbers – Q1’17
INVESTSCAPE Q2 2017Analyzing the $2.4 Billion MarTech Funding
Quarter In Numbers – Q2’17
The highest number of investments by any one
VC in MarTech(Salesforce Ventures)
Share of companies funded that are
from USA
Number of VCs invested in 100 MarTech companies across 31 categories in
AMJ 2017
250+80%6
Q1 2017
Q2 2017
Quarter In Numbers – Q3’17
The highest number of investments by any one
VC in MarTech(New Enterprise Associates)
Share of companies funded that are
from USA
Number of VCs invested in 100+ MarTech companies across 37 categories in
JAS 2017
250+74%4
INVESTSCAPE Q3 JAS 2017Analyzing the $2.4 Billion MarTech Funding
ANNUAL INVESTSCAPE 2017Analyzing the $8.8 Billion MarTech Funding
© 2018 All Rights Reserved. MarTech Advisor. Page - 17
Quarter In Numbers – Q4’17
The highest number of Investments by any
one VC in Martech (Salesforce Ventures)
Shares of Companies funded that are
from USA
Number of VCs Invested in 100+ Martech
companies across 35 categories in OND 2017
250+82%4
INVESTSCAPE Q4 OND 2017Analyzing the $2.3 Billion MarTech Funding
Quarter In Numbers – Q4’17
The highest number of Investments by any
one VC in Martech (Salesforce Ventures)
Shares of Companies funded that are
from USA
Number of VCs Invested in 100+ Martech
companies across 35 categories in OND 2017
250+82%4
INVESTSCAPE Q4 OND 2017Analyzing the $2.3 Billion MarTech Funding
Q3 2017
Q4 2017
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About MarTech AdvisorSec�on 4
About MarTech Advisor
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