Q3 B2B Distributor Tech Investments
Distributor Tech Investments Reach $150M+ in Q3, Exceeding 2024 Deal Volume Pace
Hi everyone,
Happy Halloween!
Distributor tech investment isn’t slowing down — it’s accelerating. Q3 saw seven new distributor-backed tech deals worth $150M+ in disclosed funding, bringing the 2025 YTD total to 19 deals so far. That’s well
ahead of 2024’s pace, which had only reached 13 by this point last year.
With no signs of a Q4 slowdown, we’re on track to set a new record for annual deal volume in 2025!
Q3 Picks Up the Pace
This quarter saw distributors continuing to lean into technology investments, maintaining the momentum from Q2, and nearly matching Q2 2024’s all-time high investment count.
Deal volume in Q3 increased from six deals in Q2 to seven deals in Q3, while the average investment size rebounded to ~$23M, on par with Q1 levels again after a short-lived Q2 decline to an average of ~$10M. The recovery was driven by a return to later-stage investing and larger growth rounds.
Who’s Investing
In Q3, we saw tech investments by the following distributors:
Wesco
Dealer Tire
McKesson (via McKesson Ventures)
Lowe’s
Sodexo
Marubeni (parent of XL Parts & The Parts House)
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!
Applico Capital’s Deal Participation Holds Steady
Distributor tech investments rose from 14 deals in 2023 to 20 in 2024. With 19 deals already completed in 2025, this year has already nearly matched last year’s record with a full quarter still remaining.
Since our fund’s inception in 2023, Applico Capital has participated in ~17% of all B2B distribution tech investments we’ve tracked – more than any other single investor in the space since our fund’s inception. With nine completed investments, we’ve established ourselves as the most active capital partner in B2B distribution technology.
The chart below shows Applico Capital’s continued contribution to the distribution technology venture market.
