Martech activity slows in 2023 with less funding, launches

In 2023, martech funding and industry activity significantly dwindled, marked by fewer product launches, feature updates and M&A deals compared to previous years.

There were 354 new product announcements, down 6% from 2022’s 376 new products. 

Investment shifts. Martech investment saw a consistent decline, decreasing from $39.8 billion in 2021 to $28.4 billion in 2022 and further to $18.9 billion in 2023.

In Q4 alone, total investment sharply declined, plummeting from $13.2 billion in Q1 2023 to just $699 million. Notably, artificial intelligence companies attracted most funding this quarter, securing $156 million (22% of the total funding). 

Emerging AI tools. Over the past four quarters, CabinetM has tracked and cataloged generative AI products and other categories that leverage AI.

In Q4, four new AI tools were announced, significantly different from the 13 in Q1, 34 in Q2 and 15 in Q3.

M&A activity. In 2023, there were 121 acquisitions totaling $52.5 billion in disclosed purchase amounts, down from 246 in 2022, with a slightly higher total of $54.9 billion. This represents a significant 51% decrease in acquisitions from 2022 to 2023.

CabinetM’s Q4 2023 MarTech Innovation & Year End Review is not gated, and downloading the report will not result in a barrage of emails and phone calls. 

CabinetM MarTech Innovation Reports are a quarterly summary of new technology introductions, feature updates and acquisitions. They can be accessed without a gate on LibraryM.