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Startup Market Quarterly Highlights
RETAIL TECHNOLOGY
September 2017
Retail technology quarterly highlights
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This quarterly highlight provides an overview of the retail technology sector and is broken down into three sections
Sector Description
High-level sector metrics, innovation quadrant, and
category definitions
Trends & Insights
Infographics and data points for the retail technology
sector
Quarterly Activity
Major funding and exit events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup database and research platform
Sector Summary
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Retail technology startups are creating new businesses in 22 categories
The full Venture Scanner market report and database tracks 1,670 companies
with $51B in funding
RETAIL TECHNOLOGY
The graphic above shows a random sampling of companies in each category, data cumulative as of September 2017
Store Analytics Store Management RetargetingPoint of Sale
Data and Analytics Last Mile Logistics RecommendationO2O Payments
Personalization Store Experience
Coupons Price Comparison InfrastructureMarketing/CRM
Made to Measure
Daily Deals Retail AR Local AvailabilityLoyalty Programs
Social Discovery Local Ad Tech
Local Incentives
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Innovation quadrant for retail technology
This quadrant shows a relative segmentation of the categories with respect to one another, data cumulative as of August 2017
Average Funding
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
Ave
rage
Age
Last Mile Logistics
POS Payments
Marketing Platform
In-Store Experience
Social Discovery
Store AnalyticsPersonalization
O2O Payments
Loyalty Programs
Recommendation
Local Availability
Infrastructure
Data & Analytics
Local IncentivesCoupons
Retail AR
Made-to-Measure
Local Advertising
In-Store Management
Price Comparison
Retail technology startups play in many different categories (1 of 3)
6Category stats cumulative as of Augusts 2017
Automated Personalization Platforms127 Startups, $2.4B Total FundingCompanies that deliver custom ads, marketing messages, or dynamically optimized webpages for different users
Data and Analytics83 Startups, $1.5B Total FundingCompanies that acquire, organize, and distribute data for retailers to enhance their applications and service offerings
In-Store Experience 175 Startups, $6B Total FundingCompanies that enhance a customer’s journey through a store using solutions such as digital engagement, mobile apps, and gamification
Last Mile Logistics 193 Startups, $13B Total FundingCompanies that are innovating on the last phase of the supply chain, from the store or warehouse to the consumer’s location
Coupons52 Startups, $888M Total FundingCompanies that provide retailers with physical and digital merchant coupon solutions, as well as the security functions to go along with them
Infrastructure and Enablers 69 Startups, $1.8B Total FundingCompanies that help retailers improve existing technologies and create new ones, such as retailer-branded mobile smartphone applications
In-Store Management 38 Startups, $349M Total FundingCompanies that improve the productivity of brick and mortar sales associates by tracking their effectiveness and providing feedback
Local Advertising Technology 34 Startups, $467M Total FundingCompanies that use mobile technology to alert consumers of a retail product or service available near their location
Retail technology startups play in many different categories (2 of 3)
7Category stats cumulative as of Augusts 2017
Local Daily Deals44 Startups, $2.5B Total FundingCompanies that sell vouchers for locally available goods and services at a steeply discounted price for a limited duration
Loyalty Programs129 Startups, $1.9B Total FundingCompanies that provide the technology to power a retailer’s customer loyalty program, such as tracking purchases for reward points
Marketing Platforms and CRMs215 Startups, $8B Total FundingCompanies that enable retailers to execute marketing campaigns and engage with their customers across social media channels
Physical Store Analytics 94 Startups, $2.9B Total FundingCompanies that provide retailers with data about in-store customer behavior to increase revenue and conversion rates
Local Incentives 83 Startups, $1.9B Total FundingCompanies that help retailers attract new and repeat customers through gamification, frequency rewards, or discounts
Made to Measure Customization60 Startups, $477M Total FundingCompanies that use proprietary technologies and supply chain processes to enable shoppers to create custom fitted products
Online to Offline Payments67 Startups, $2.1B Total FundingCompanies that provide consumers with mobile wallets or other digital storage functionality related to payments
Point of Sale Payments180 Startups, $8.9B Total FundingCompanies that provide physical payment solutions for brick-and-mortar businesses and organizations, such as near-field communication for payments
Retail technology startups play in many different categories (3 of 3)
8Category stats cumulative as of Augusts 2017
Price and Feature Comparison 28 Startups, $214M Total FundingCompanies that empower consumers to compare product prices at different outlets or compare features across similar products
Retail Augmented Reality 26 Startups, $489M Total FundingCompanies that enable consumers to interact with products using augmented reality to try them out or see additional product information
Search and Local Availability 52 Startups, $1.1B Total FundingCompanies that allow consumers to search for the local availability of products and check their prices and store-level inventory
Product Recommendation 87 Startups, $1.9B Total FundingCompanies that use crowd sourced data, stylists, or algorithms to determine the best products for a specific shopper
Retargeting 45 Startups, $735M Total FundingCompanies that track a consumer’s location online to serve them relevant dynamic ads as they move across the web
Social Discovery 70 Startups, $3B Total FundingCompanies that allow for the discovery of products through social sharing and location check-ins, as well as the ability to purchase items from social websites
Sector Trends & Insights
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Investing into the sector is occurring across a variety of categories
The Last Mile Logistics category accounts for 21% of venture funding and 10% of total companies in the retail technology sector
Venture Investing in Retail Technology
Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative through August 2017
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Com
pan
y Cou
nt
Tota
l Fu
nd
ing
($B
)
VC Funding Count
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VC funding into retail tech has grown in recent years
Overall retail technology funding grew at a CAGR of 24% from 2011-2016, and 2017 is currently at 91% of 2016 funding
Retail Technology Funding Over Time
Data cumulative through August 2017
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tota
l Fu
nd
ing
($B
)
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Retail technology funding amounts are relatively equally distributed
Retail Technology Funding Amount By Round
Series B financings accounted for 26% of total 2016 sector VC funding
Graphs shows only the funding rounds listed therein, data cumulative through August 2017
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fun
din
g A
mou
nt (
$M)
Late Stage Series D Series C Series B Series A Seed
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Retail technology startups founded in 2008 lead in VC funding
Startups founded in 2008 account for 21% of the sector funding over the last decade, and include companies like Ele, Groupon, and Farfetch
Retail Technology Funding By Vintage Year
Data cumulative through August 2017
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tota
l Fu
nd
ing
($B
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Year Founded
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Retail technology startups are a global phenomenon
Retail Technology Startup Count by Country
Data cumulative through August 2017
9500
Companies
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A variety of top investors are making bets into retail technology
Selected Investor Activity in Retail Technology
The above count represents a subset of overall investor activity, data cumulative through August 2017
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Nu
mb
er o
f In
vest
men
ts
Number of Investments Number of Companies Backed
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Exits within the space have been dominated by acquisitions
Exit events within the sector have grown by 193% from 2011 to 2016, and 2017 is currently at 122% of the 2016 total
Retail Technology M&A and IPO Events By Year
Data cumulative through August 2017
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Nu
mb
er o
f Exi
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Public Acquired
Quarterly Notable Events
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Recent retail technology funding statistics
There have been 97 funding events from April 2017 through June 2017
Recent Retail Technology Funding Round Counts
Graph shows only the funding types listed therein
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15
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Seed Series A Series B Series C Series D Series E Late Stage
Fun
din
g Ev
ent C
oun
t
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Recent retail technology funding events
Notable Recent Retail Technology Funding Events
Company Funding Type Amount Date
Private Equity $1,200,000,000 May 4, 2017
Undisclosed $1,000,000,000 June 5, 2017
Private Equity $421,000,000 May 12, 2017
Undisclosed $397,000,000 June 21, 2017
Post IPO Debt $260,000,000 May 25, 2017
Retail technology startups raised $5 billion from April 2017 through June 2017
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Recent retail technology funding events
Notable Recent Retail Technology Funding Events
Company Acquirer Amount Date
$630,000,000 April 10, 2017
$462,000,000 May 1, 2017
$310,000,000 July 16, 2017
$215,000,000 April 29, 2017
$145,000,000 June 29, 2017
There have been 26 retail technology exits between April and June 2017, including 23 acquisitions and 3 IPOs
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