INSUBCONTINENT EXCLUSIVE:
the past, with the flow of VC dollars in the space dropping dramatically in recent years
According to data from Crunchbase, adtech deal flow has fallen at a roughly 10% compounded annual growth rate over the last five years.While
subsectors like privacy or automation still manage to pull in funding, with an estimated 90%-plus of digital ad spend growth going to
incumbent behemoths like Facebook and Google, the amount of high-growth opportunities in the adtech space seems to grow narrower by the
week.Despite these pains, funding for marketing technology has remained much more stable and healthy; over the last five years, deal flow in
marketing tech has only dropped at a 3.5% compounded annual growth rate according to Crunchbase, with annual invested capital in the space
hovering just under $2 billion.Given the movement in the adtech and martech sectors, we wanted to try to gauge where opportunity still
exists in the verticals and which startups may have the best chance at attracting venture funding today
opportunity in marketing and advertising:Several of the firms we spoke to (both included and not included in this survey) stated that they
are not actively investing in advertising tech at present.
