Marketing technology investment slows in Q4 after a bumper $11.4 billion year

2014 saw more investment than ever in the marketing technology space, despite a dramatic slowdown in funding during the last quarter.

Analyzing over 1,100 companies using data from VB Profiles (disclosure: VB has a stake in VB Profiles), which aggregates company data from marketing technology lists from organizations such as VB Insight, ChiefMartec.com, Gartner, and LUMA Partners, investments in the final quarter of 2014 were almost 60 percent lower than in previous periods. Despite the last quarter lull, martech continues to be a red hot investment space.

One of the big winners in the final three months of the year was SurveyMonkey, a poll, survey, and questionnaire company. SurveyMonkey raised an additional $ 250 million in December to take its total funding beyond $ 1 billion. Thanks to an IPO in October, Hubspot raised $ 125 million to help it grow in the inbound marketing industry. Other big winners included Hortonworks, Stripe, Mixpanel, Alteryx, and InfusionSoft.

In total, the final quarter of 2014 included 45 IPO, seed, early stage, and growth events, totaling over $ 1.24 billion.

So just how hot is the marketing technology industry right now?


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In 2014, $ 11.4 billion was raised in total across 246 organizations, and that takes into account only those that raised funding. In addition to those investments, 71 businesses, including Tibco, Conversant, Digital River, and BrightRoll, were acquired in the last 12 months.

When 318 of the 1,100 businesses we’re tracking each have some kind of sizable activity within a 12-month period, you can be sure it is for a reason.

While marketing technology still has a long way to go until it becomes prevalent in every type of business, and not just Fortune 500 or high-tech organizations, the sheer level of activity in the space is a good indicator of future value. In fact, the 71 businesses acquired this year have a total valuation of over $ 21 billion.

Here are the funding lists for the last three months of 2014 (all amounts in millions of dollars):

logo placeholder Marketing technology investment slows in Q4 after a bumper $11.4 billion year

Martech October 2014 Marketing technology investment slows in Q4 after a bumper $11.4 billion year

logo placeholder Marketing technology investment slows in Q4 after a bumper $11.4 billion year

Martech November 2014 Marketing technology investment slows in Q4 after a bumper $11.4 billion year

logo placeholder Marketing technology investment slows in Q4 after a bumper $11.4 billion year

Martech December 2014 Marketing technology investment slows in Q4 after a bumper $11.4 billion year

More information:

Hortonworks was formed by the key architects and core Hadoop committers from the Yahoo! Hadoop software engineering team in June 2011 in order to accelerate the development and adoption of Apache Hadoop. Funded by Yahoo! and Benchmark … read more »

BrightRoll is the only independent and unified programmatic video advertising platform for reaching audiences across web, mobile and connected TV. The company powers digital video advertising for the world’s largest brands, including… read more »

Mixpanel is the most advanced analytics platform in the world for mobile & web. Mixpanel’s mission is to help the world learn from its data. To achieve this, they’ve built the most powerful web & mobile analytics platform in the world…. read more »

HubSpot is the world’s leading inbound marketing and sales platform. Since 2006, HubSpot has been on a mission to make the world more inbound. Today, over 10,000 customers in 65 countries use HubSpot’s software, services, and suppo… read more »

Stripe is a simple, developer-friendly way to accept payments online. We believe that enabling transactions on the web is a problem rooted in code, not finance, and we want to help put more websites in business…. read more »

Conversant Inc. is a digital marketing company that helps enterprises in delivering personalized media programs and creating personalized experiences for consumers by leveraging consumers behavioural, demographic, purchase and ad inter… read more »

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