Explore CabinetM’s Q2 2024 martech report: Record $10.8 billion investment, AI funding boost and slowing product innovation.
CabinetM’s Q2 2024 Martech Innovation Report reveals a surge in martech investments to $ 10.8 billion, despite a 31% year-over-year decrease in new product announcements.
New products. We are once again seeing a steady uptick in new products since the end of last year, with the number jumping to 88 in Q2 2024 — but not nearly as much as we saw this time last year (128 in Q2 2023, a 31% decrease).
Investment shifts. Investment in martech companies was spread across 35 categories and significantly increased from $ 699 million in Q4 2023 to $ 1.8 billion in Q1 2024 to a whopping $ 10.8 billion in Q2 2024. (This number, however, is skewed by two large AI-based investments of $ 6 billion in xAI and $ 1 billion in Scale AI.)
Compared to past quarters, we haven’t seen this type of investment since Q1 2023, when we saw $ 13.2 billion. Aside from the two AI companies that collectively received $ 7 billion (66% of the total funding), web performance and security companies received a significant investment this quarter: $ 1.28 billion (12% of the total funding).
An eye on AI. Over the past year and a half, CabinetM has been tracking and cataloging generative AI products and other categories that leverage AI. In Q2, 12 new AI tools were announced, and a significant amount of funding was announced (an amount we haven’t seen close to since the beginning of last year).
M&A activity. In Q2, we saw a downturn in M&A activity with 24 acquisitions, compared to 33 in Q1 2024. However, compared to Q2 of last year, the number of acquisitions has roughly stayed the same; we saw 26 in Q2 2023 and 24 this quarter.
Q2 2024 Martech Innovation Report is a quarterly summary of new technology introductions, feature updates and acquisitions. It is not gated, and downloading the report will not result in a barrage of emails and phone calls.
All CabinetM Martech Innovation Reports can be accessed on LibraryM.
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