ech investments decline, but AI companies thrive with funding

CabinetM released its Q2 2020 MarTech Innovation report, a summary of the latest technology, features updates, and acquisitions.

Key findings In Q2 of 2023, 128 new products were announced, an increase from the previous quarters due to new AI tools.

The investment in martech companies decreased from $13.2 Billion in Q1 of 2023 to $3.1 Billion in Q2. This is due to a single investment in ChatGPT of $10 billion and Inflection AI’s $1.3 billion. It is not surprising that AI companies have received the most investment in this quarter. $2.3 billion (75% total funding) was invested.

AI dominates martech. AI will continue to dominate the martech industry for some time. Even the potential of AI for martech innovations is exciting. CabinetM began tracking and cataloging generative AI products, as well as other categories and products that utilize AI over the past three-quarters. In Q2, 34 new AI products were announced.

M&A Activity. We saw a significant drop in M&A in Q2, with only 26 acquisitions compared to the 76 that were made in Q2 2020 and 54 in Q2 21. The number of acquisitions dropped by almost half from the previous quarter. From 40 in Q1-2023 to just 26 this quarter. This downward trend will be closely monitored over the next few quarters.

The cabinetM Q2 2023 marTech innovation report does not have a gate and will not cause a flood of emails or phone calls.

You can access all CabinetM MarTech innovation reports without a password on libraryM.

The post Martech investments decline, but AI companies thrive with funding first appeared on MarTech.