The number of new product releases in the martech sector slowed in Q3 2024, while investment shrunk and M&A activity increased.
That’s according to CabinetM’ Q3 2024 MarTech Innovation Report.
New product announcements decrease in Q3 2024
CabinetM saw a slight downturn in ne product announcements since last quarter with the number dropping to 72 in Q3 2024. That’s still more product announcements than the report found this time in 2023 (65 in Q3 2023, an 11% increase for 2024).
Investment in martech vendors shifts
Investment in martech companies was spread across 25 categories and significantly decreased in Q3 2024, from $10.8 billion in Q2 2024 to $1.5 billion in Q3 2024.
The Q2 number, however, was skewed by two large AI-based investments of $6 billion in xAI and $1 billion in Scale AI. Investment in Q3 2024 was on par with the average quarterly investment generally seen.
Email security and deliverability companies received the most investment this quarter: $270 million (18% of the total funding).
Dig deeper: Where are martech vendors finding their revenue? Let’s take a look
Keeping an eye on AI
For almost two years now, CabinetM tracked and cataloged generative AI products and other categories and products that leverage AI. In Q3 2024, six new AI tools were announced and $60 million of funding was announced (the lowest in AI that we’ve seen to date).
M&A activity increased in Q3
In Q3 2024, CabinetM saw a 38% uptick in M&A activity, with 33 acquisitions, compared to 24 in Q2 2024. M&A activity over the past year has been cyclical by quarter and consistently between 24 and 33 each quarter.
Q3 23Q4 23Q1 24Q2 24Q3 243124332433M&A activity in the martech sector, by quarter. Source: CabinetM.
CabinetM’ Q3 2024 MarTech Innovation Report is available without registration. Downloading it will not result in a barrage of emails and phone calls.
All CabinetM MarTech Innovation Reports can be accessed without a gate on LibraryM.
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