Reaction to our Q3 Distribution Tech Report
B2B's bright light amidst the darkness...
Distribution Tech Most Active Vertical 💪
We published our latest Distribution Tech Index quarterly report a couple weeks ago. This week we look to provide additional commentary to the numbers and stats contained in the report.
One immediate trend which struck us—Distribution related technologies are not witnessing the same level of downside as other indices, be it broad or thematic. Pages 6 and 7 of the report, where we conduct a comparative analysis with three distinct benchmarks, illustrate this.
Enterprise SaaS, a pillar that has seen massive cash influx in past years, experienced a substantial 50% dip in its performance, while CVC investing also faced a downturn. In contrast, the Distribution Tech Index showcases resilience, with deal counts falling by only 8% this quarter—a notable feat when considered alongside the broader VC market, which saw an 11% decline.
This standout performance highlights the nascent state of innovation in B2B distribution. In comparison to more mature tech indices like Enterprise SaaS, this resilience speaks to the how early this sector is in its lifecycle. It's evident that Distribution Tech is maintaining its forward momentum, even in the face of broader market challenges.
FJ labs has an insatiable appetite for B2B marketplaces! 🍔
One name consistently stands out in the Distribution Tech top investors list: FJ Labs. Their three B2B marketplace investments in Q3 has earned them the coveted #1 spot in this quarter's top VC ranking.
Our interview with Fabrice Grinda, Founding Partner of FJ Labs, provided a glimpse into what they look for in B2B marketplaces. Notably, investing in SaaS businesses that can become marketplaces - is a key strategy that Fabrice appreciates.
FJ Labs has been a constant presence in our top investors list and has been committed to investing in Distribution Technology over the years.
In Q3, FJ Labs made some notable investments in the Distribution Tech sector, further solidifying their influence:
Ghost
Founded: 2021
Website: https://www.ghst.io/
Last Fundraise: August 23, 2023 - Series B $30M Raised