Dealroom.co – New Marketplaces Report, 2023

Venture capital investment in marketplaces is shifting towards other business models like SaaS or hybrid models, with vertical marketplaces attracting 90% of funding over the last three years. B2B marketplaces are on the rise and less impacted by economic uncertainties. Global VC funding by business model, vertical vs horizontal marketplaces share of VC funding amount and round count from 2020-2023 is being examined. Investments in SaaS solutions and marketplaces have increased, with marketplaces comprising the lowest share of global venture capital in over a decade. In 2023, VC funding in marketplaces totaled $31.6B, dropping to 2014 levels due to a decline in late-stage rounds. Specialization is essential, with vertical marketplaces dominating funding in recent years. Fintech-enabled, SaaS-enabled, and AI-enabled marketplaces are becoming more common. B2B marketplaces are also seeing a rise, with an all-time-high 20% share of funding going to them. They are less affected by economic uncertainties and benefit from the digitization of supply chains. B2B marketplaces are often SaaS and/or fintech-enabled to meet the specific needs of their merchants and clients.