B2B marketplaces are on a stealthy growth path, as VCs pivot away from B2C
VCs are pivoting away from consumer-focused startups and are now looking to B2B.
B2B marketplaces startups are experiencing growth in 2022, despite market volatility and uncertainty, offering VCs with investment opportunities looking to fuel success stories and greater returns.
In a new report, made in partnership Adevinta Ventures, we take a look at how B2B marketplaces restructured their approach to complex markets, what makes them so resilient to market shake ups, and where they have the most potential to grow.
Download and access the full report on B2B marketplaces to discover what’s driving one of B2B marketplaces’ best years for growth.
Report - B2B Marketplaces 2022
Expanding laterally and vertically
B2B Marketplaces are gaining ground thanks to increased adoption of digital solutions by decision makers, greater access to financing options and ability to manage more complex value chains.
Over time, B2B marketplaces have expanded to a larger portion of their industry value chain.This expansion occurred due to advances in 3 main high-level functions: supply and demand aggregators, procurement tools and financing solutions.
Looking ahead, vertical specialists and managed marketplaces are expected to generate and capture more value in complex value chains and specialize in niche industries, like commodities.
Where is value concentrated in?
Consumer Goods, Logistics and Lending generate the most value to B2B Marketplaces.
While Consumer Goods hold many of the known key players in the market, such as Faire and Udaan, new target clients and industries are emerging. As more complex markets have room for growth, investors and founders are creating increasing value in Logistics and Lending marketplaces as pillars for market development.
B2B, the resilient segment in marketplaces
Marketplaces haven’t had an easy 2022, but B2B maintained its position. While B2C marketplaces lost 17% of their combined enterprise value and VC funding fell 40% in H1 2022, B2B saw a 3% increase and only a 10% drop in the same metrics.
B2B Marketplaces have immense potential for growth
B2B marketplaces is one of the fastest-growing market sectors for VC investment. The sector had one of the highest growths since 2017 at a 4.6x increase, overperforming Fintech (3.1x), Health (2.6x) and Transportation (1.6x).
VC funding has grown significantly in B2B marketplaces in the last 5 years, but funding levels are still only 19% of that of their B2C counterparts, leaving room for potential growth.
“We are very excited about the opportunities ahead in B2B marketplaces and we believe the resilient nature of the model will see investors double down on it in the near term. Also, we’re already witnessing a “B2B-zation” of B2C marketplaces as well as SaaS companies building their own marketplaces on top. We are confident this trend will only accelerate."
Looking for more insights on how B2B marketplaces are growing faster than other sub-sectors? Access the full report and find out what’s driving one of B2B marketplaces’ best years for growth.