Q1 B2B Distributor Tech Investments
Distributors Hit the Ground Running in Q1
Hi everyone,
I hope you’re having a relaxing Masters Sunday.
This was the most active Q1 for distributor tech investments in years. Historically the slowest period of the year, Q1 had six minority tech investments from B2B distributors. If the rest of 2025 follows the usual acceleration pattern, it could be a breakout year!
Nearing All-Time Highs
The six investments totaled roughly $74M in equity capital raised (excluding undisclosed amounts). Not all of that came from distributors – co-investors participated in several of these rounds as well.
Q1’s six deals landed just one shy of the all-time high of seven we saw in both Q2 and Q4 of 2024. It’s a strong signal that distributor appetite for tech hasn’t slowed.
Who’s Investing
In Q1, we saw tech investments by the following distributors:
Beacon Roofing Supply (now QXO)
Winsupply
Cencora
McKesson Ventures
ABC Supply
and… Applico Capital!
As in past updates, we include Applico Capital’s investments in the tally because all of our capital comes from you – the distributors! With over 10 multi-billion-dollar B2B distributor strategics as LPs, our fund is purpose-built to back the technologies reshaping distribution.
Focus Stays on Investments, Not M&A
Distributors remained focused on minority tech investments in Q1, signaling a continued preference for strategic bets over outright acquisitions. It’s now been two full quarters since we last reported a tech M&A deal, with Wesco’s acquisition of Storeroom Logix in Q3 2024. Since then, tech M&A activity has gone quiet.
Tech Startup Investment Profiles
Here’s a closer look at the six companies that raised capital from distributors in Q1:
Augment
Founded: 2024
Website: goaugment.com
Total Raised: $25M
Transaction Date: Mar 18, 2025 (Seed)
Augment is an AI logistics platform and the developer of Augie, an AI teammate built to manage complex freight workflows. Augie can call, email, log into systems, escalate issues, and coordinate FTL, LTL, expedited, and drayage shipments. The company raised a $25M seed round led by 8VC, with participation from Applico Capital.