Investor funding for B2B marketplaces has slowed down in 2023, with a significant drop in both the amount of funding and the number of deals in comparison to the previous year. According to Applico LLC’s third annual B2B marketplace rankings, funding for B2B marketplaces totaled $700 million in 2023, compared to over $2 billion in 2022. The number of deals also decreased to just 23, a 40% decline from the previous year.
One marketplace that did receive funding in 2023 is Faire, which connects independent retailers with emerging brands. Shopify Inc. invested an undisclosed amount in Faire as part of a partnership, and at the time of the investment, Faire was valued at $12.5 billion. Faire is the top-ranked B2B marketplace in Applico’s rankings.
Applico also identified a trend of software-as-a-service (SaaS) technology converging into B2B marketplaces. Acculynx, which ranks number two on Applico’s list, started out as a provider of a SaaS-based business management app for roofing contractors and later evolved into a B2B marketplace. GrubMarket Inc., ranked third, also embraced SaaS technology.
Overall, the slowdown in investor funding for B2B marketplaces in 2023 suggests a potential shift in the market, with fewer deals and less capital available. The emergence of SaaS technology in B2B marketplaces highlights the increasing importance of integrated software solutions in this sector.
