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Retail TechnologyStartup Landscape Trends and Insights
February, 2017
Retail technology report outline
2
This report provides an overview of the retail technology sector and is broken down into three sections
Sector Description
High-level sector metrics with sub-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 landscaping platform
Retail Technology Sector Description
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Retail startups are creating new businesses in 14 different categories
The graphic above shows a sampling of companies in each category, stats as of February 2017 4
Retail Technology
Learn about our full 1,531 company report with $37B in funding
Personalization In-Store ExperienceStore Analytics In-Store Management
Data and Analytics
Point of Sale
Last Mile Logistics
Retargeting
O2O Payments Recommendation
Made to Measure Local Incentives
Coupons Price Comparison Marketing and CRM Infrastructure/Enablers
Daily Deals Retail AR Loyalty Programs Local Availability
Social Discovery Local Ad Tech
Innovation quadrant for retail technology
AVERAGE FUNDING ($M)
AV
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EA
RS
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ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
This quadrant shows a relative segmentation of the categories with respect to one another 5
POSPayments
SocialDiscovery
Last MileLogistics
Physical StoreAnalytics
O2O Payments
Local Incentives
In-Store Experience
MarketingPlatforms
ProductRecommendation
LoyaltyPrograms
Coupons
Automated Personalization
LocalAvailability
Infrastructureand Enablers
Retargeting
Made-to-Measure
Data and Analytics
Local AdvertisingTechnology
RetailAugmented
Reality
Price/FeatureComparison
zIn-Store
Management
Local Daily Deals
Retail technology startups play in many different categories (1 of 4)
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Automated Personalization Platforms 120 Startups, $2.2B Total FundingCompanies that deliver custom ads, marketing messages, and dynamically optimized site pages for different users
Data and Analytics 74 Startups, $1.2B Total FundingCompanies that acquire, organize, and distribute data for retailers to enhance their applications and service offerings
In-Store Experience 173 Startups, $5.6B Total FundingCompanies that enhance a customer’s journey through a store using things like digital engagement, mobile apps, and gamification
Coupons51 Startups, $829M 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 59 Startups, $1.4B Total FundingCompanies that help retailers improve existing products and create new ones, such as retailer-branded mobile smartphone applications
In-Store Management 34 Startups, $239M Total FundingCompanies that improve the productivity of brick and mortar sales associates by tracking their effectiveness and providing feedback
Category stats as of February 2017
Retail technology startups play in many different categories (2 of 4)
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Last Mile Logistics 163 Startups, $7B Total FundingCompanies that are innovating on the last phase of the supply chain, from the store/warehouse to the consumer’s location
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 Programs124 Startups, $1.8B Total FundingCompanies that provide the background technology to power a retailer’s customer loyalty program
Local Advertising Technology 33 Startups, $455M Total FundingCompanies that use mobile technology to alert consumers of a retail product or service available near their location
Local Incentives81 Startups, $1.7B Total FundingCompanies that help retailers attract new and repeat customers through gamification, frequency rewards, and discounts
Made to Measure Customization 59 Startups, $464M Total FundingCompanies that use proprietary technologies and supply chain processes to enable shoppers to create custom fitted products
Category stats as of February 2017
Retail technology startups play in many different categories (3 of 4)
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Marketing Platforms and CRMs157 Startups, $3.9B Total FundingCompanies that enable retailers to execute marketing campaigns and engage with their customers across social media channels
Physical Store Analytics91 Startups, $2.8B Total FundingCompanies that provide retailers with data about in-store customer behavior to increase revenue and conversion rates
Price and Feature Comparison 27 Startups, $186M Total FundingCompanies that empower consumers to compare product prices at different outlets or compare features across similar products
Online to Offline Payments67 Startups, $2B Total FundingCompanies that provide consumers with mobile wallets or other digital storage functionality related to payments
Point of Sale Payments177 Startups, $7.9B Total FundingCompanies that provide physical payment solutions for brick-and-mortar businesses and organizations
Product Recommendation85 Startups, $1.9B Total FundingCompanies that use crowd sourced data, stylists, or algorithms to determine the best products for a specific shopper
Category stats as of February 2017
Retail technology startups play in many different categories (4 of 4)
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Retail Augmented Reality25 Startups, $227M 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 47 Startups, $599M Total FundingCompanies that allow consumers to search for the local availability of products and check their prices and store-level inventory
Retargeting 45 Startups, $740M Total FundingCompanies that leverage cookie data to track online consumers and serve them relevant dynamic ads across the web
Social Discovery 70 Startups, $2.8B Total FundingCompanies that allow for the discovery of products through social sharing and location check-ins
Category stats as of February 2017
Retail Technology Funding Information & Trends
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Investing into the space is dominated by payments and last mile logistics
The payments and last mile logistics categories account for 35% of venture funding and 22% of total companies in the retail technology startup sector
Venture Investing in Retail Technology
Companies are categorized by function, and therefore can exist in multiple categories
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VC Funding Count
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VC funding into retail technology has grown substantially in recent years
Overall retail technology VC funding grew at a CAGR of 13% from 2011-2016
Retail Technology Funding Over Time
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
To
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Retail technology startups are demonstrating traction
Retail Technology Funding Amount by Type
Recent years have seen relatively equal funding amounts by round, implying both newer and established startups are demonstrating success
Graph shows only the funding types listed therein
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fun
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B)
Late Stage Series D Series C Series B Series A Seed
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Retail technology startups founded in 2010 lead in VC funding
Startups founded in 2010 account for 16% of the sector funding over the last decade, and include companies like Deliver Hero, Go-Jek, and Stripe
Retail Technology Funding By Vintage Year
0.0
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
To
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g ($
B)
Year Founded
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Retail technology startups are a global phenomenon
Retail Technology Startup Count by Country
0 880Companies
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Top VC investors are making bets into retail technology
Selected Investor Activity in Retail Technology
The above count represents a subset of overall investor activity
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Nu
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Number of Investments Number of Companies Backed
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Retail technology exit activity involves mostly acquisitions
Exit events within the retail technology sector grew by 164% between 2011 and 2016
Retail Technology M&A and IPO Events
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Retail Technology Quarterly Notable Events
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Recent retail technology funding statistics
There have been 142 retail technology funding events since Oct 2016
Recent Retail Technology Funding Round Counts
Graph shows only the funding types listed therein
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Seed Series A Series B Series C Series D Late Stage
Fun
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Recent retail technology funding events
Notable Recent Retail Technology Funding Events
Company Funding Type Amount Date
Private Equity $1,100,000,000 Jan 24, 2017
Private Equity $250,000,000 Jan 4, 2017
Series D $150,000,000 Nov 25, 2016
Debt Financing $100,000,000 Oct 13, 2016
Series G $88,500,000 Dec 20, 2016
Retail technology startups raised $3 billion since Oct 2016
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Notable recent retail technology exit events
Notable Recent Retail Technology Acquisitions
Company Acquirer Amount Date
$675,000,000 Oct 6, 2016
$500,000,000 Dec 10, 2016
$42,500,000 Dec 5, 2016
Unknown Jan 27, 2017
Unknown Jan 19, 2017
There have been 17 exit events since Oct 2016, all of which have been acquisitions
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