Hi everyone,
The State of B2B Distribution Tech report for Q4 2024 provides an overview of investment trends in technology companies within the B2B distribution industry. This report also compares investment levels against the overall venture market, corporate venture capital (CVC), and supply chain technology investments. As this is the 4th quarter report, it includes a full 2024 investment summary. The full report is available exclusively for our premium subscribers.
Key Findings for Q4 2024
The B2B distribution tech sector saw a strong recovery after a slow start in early 2024. Larger deals and later-stage investments dominated, reflecting increased investor confidence in more stable and scaled tech companies. Corporate venture capital in Distribution Technology pulled back as did overall CVC funding in 2024, despite overall VC remaining strong.
Looking Ahead to 2025
With investment levels rebounding and larger deals leading the way, B2B distribution technology is poised for continued momentum into 2025. The role of AI, automation, and logistics innovation will likely shape the next wave of high-growth investments.
This report highlights a renewed confidence in distribution technology, setting the stage for continued investment growth in 2025. 🚀
Continued Growth in Distribution Tech Investments
• Q4 2024 saw $3.2 billion in total funding, marking the fourth consecutive quarter of growth in distribution technology investments.
• This is a significant rebound from Q1 2024’s low of $740 million, bringing investment levels back to early 2022 figures.
• 156% year-over-year (YoY) growth compared to 2023, indicating a renewed investor confidence in the sector.
Top Venture Investors in Distribution Technology
Ironspring took home the prize for the most investments in Q4 with 3 investments! In Q3, FJ Labs took the prize with a whopping 5 distribution tech investments in the quarter. Both of Applico Capital’s investments haven’t yet been announced – putting us in a tie with a number of other venture investors who made 2 investments last quarter.