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Ecommerce


MARKET MAP: ECOMMERCE INVESTORS' SHOPPING SPREE SLACKENS

By Jordan Rubio & Jacob Robbins
May 3, 2023
Ecommerce has been riding a wave. The pandemic drove immense growth for the
vertical, packing a dual punch: Consumer spending was up and lockdowns pushed
traffic to online platforms, transforming the way people shop.

The big brick-and-mortar stores got a tech upgrade while new platforms emerged
to meet demand, and investors have taken note. Backers have poured money into
segments like purchase venue, which accounts for startups that create the
systems, resources, integrations and applications that consumers use to make
purchases across all kinds of storefronts.

The market map below explores the purchase venue segment and shows which
startups are attracting investors' attention and capital.

 

 
To go deeper, read our Q4 2022 E-Commerce Report. PitchBook subscribers can also
explore the full market map with details on more than 1,600 companies.


SPOTLIGHT: PURCHASE VENUE

 * Conversational commerce: Companies that deal with AI, machine learning and
   other kinds of bots that assist transactions.
 * Livestream and social commerce: Startups that deal with commerce occurring on
   livestream or social media feeds.
 * Marketplace enablement: Companies that work on integrations that allow users
   to sell products across various marketplaces at the same time.
 * Mobile commerce: Platforms that facilitate commerce on apps and other
   technologies that are used primarily on mobile devices.
 * Storefronts and headless APIs: Platforms that help stores and other
   businesses showcase their products on websites and apps. The presentations
   are typically lightweight and simple to load and use.


TRENDS: DEALS AND EXITS

 

In Q4 2022, there were 77 ecommerce deals worth a combined $1 billion, a 41.2%
decline in deal value quarter-over-quarter, according to PitchBook data. This
marked the third consecutive quarter with a decline in deal value.

While 2022's ecommerce market saw less deal activity than the year prior, it
compared favorably to pre-pandemic years and was the second-highest year on
record with $8.8 billion raised over 296 deals. However, most of that activity
occurred early on, as broader market headwinds slowed down deal activity in the
back half of the year.

Notable deals in the last quarter of 2022 included logistic app developer
MaxAB's $40 million round as well as a $115 million Series B for return platform
operator Loop Returns.
 

There were 22 exits worth a combined $1.5 billion in 2022, a modest annual
decrease in deal value and a virtually unchanged deal count, according to
PitchBook data. In the last quarter of 2022 there were five exits of undisclosed
value, compared to the seven exits in Q3 worth $400 million.

The decline occurred in tandem with rising interest rates, which slowed down M&A
activity, as well as a nearly frozen IPO market, according to PitchBook analyst
Eric Bellomo.

Notable exits in Q4 2022 included image recognition and retail analytics
platform developer StyleSage's acquisition by Dassault Systèmes for an
undisclosed amount and Emplifi's buyout of marketing software developer Pixlee
TurnTo.

More market maps:
 * Climate tech
 * Healthcare services
 * Enterprise fintech
 * Agtech
 * Information Security


Featured image by Ground Picture/Shutterstock
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 * Venture Capital
 * Market Map


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