Funding activity in the marketing tech landscape has decelerated overall falling from 2015’s $3.8B to $2.9B in 2016. The drop-off was most pronounced in late-stage investments – it saw close to a 60% drop from $2.2B in 2015 to $1.4B in 2016. On the upside, the average early-stage ticket size did not see much change from 2015, even registering slight growth in the seed and Series A rounds. Business model-wise, companies offering marketing intelligence solutions and conversion rate optimisation tools saw a slight uptick in dollars invested.
There were a number of investments in 2016, the largest being GeTui’s $108M Series C round in April and NY’s Sprinkler bagging $105M in a Series F round led by Temasek, Wellington Management and EDBI. GeTui raised $58M in its Series D round in November, while Israel’s AppsFlyer raised $65M in a Series C round that attracted players like Qumra Capital and Goldman Sachs.
In a departure from the diminished investor appetite for the sector, marketing tools used to engage customers on mobile devices saw a 13.4% uptick in total dollars secured – from $633M across 78 rounds in 2015, to $718M across 53 rounds in 2016. Within this business model, marketing suites that enable omnichannel engagement on mobile devices is most popular investment destination, securing $1.5B of the overall $2.7B invested in this business model.
500 Startups, with 58 seed-stage investments and ten in the Series A stage has the largest portfolio of companies in the marketing tech sector. Sequoia Capital tops the charts with 17 entries in the Series A, 15 in Series B, and 16 in the later stages. Battery Ventures is close behind, with 15 in Series A, 13 in Series B and 15 late stage investments.
Note: You can download the part view of the report here. The full version of this report is available for our paid subscribers. Should you want to access the complete report and explore the Tracxn platform, drop us a note on bd@tracxn.com
Download the Tracxn Industry Report on Marketing Tech
