Martech activity slows in 2023 with less funding, launches

Martech funding, product launches and M&A sink in 2023 per CabinetM's latest report.

Chat with MarTechBot

In 2023, martech funding and industry activity significantly dwindled, marked by fewer product launches, feature updates and M&A deals compared to previous years.

Overview of martech activity in 2023

There were 354 new product announcements, down 6% from 2022’s 376 new products. 

Top 10 launch categories - 2022 vs 2023

Investment shifts. Martech investment saw a consistent decline, decreasing from $39.8 billion in 2021 to $28.4 billion in 2022 and further to $18.9 billion in 2023.

Martech investment - 2022 vs 2023

In Q4 alone, total investment sharply declined, plummeting from $13.2 billion in Q1 2023 to just $699 million. Notably, artificial intelligence companies attracted most funding this quarter, securing $156 million (22% of the total funding). 

Martech investment - Q3 2023 vs Q4 2023

Emerging AI tools. Over the past four quarters, CabinetM has tracked and cataloged generative AI products and other categories that leverage AI.

In Q4, four new AI tools were announced, significantly different from the 13 in Q1, 34 in Q2 and 15 in Q3.

Spotlight on AI products 2023

M&A activity. In 2023, there were 121 acquisitions totaling $52.5 billion in disclosed purchase amounts, down from 246 in 2022, with a slightly higher total of $54.9 billion. This represents a significant 51% decrease in acquisitions from 2022 to 2023.

Top martech acquisitions in 2023
Top 10 martech acquisition categories - 2022 vs 2023

CabinetM’s Q4 2023 MarTech Innovation & Year End Review is not gated, and downloading the report will not result in a barrage of emails and phone calls. 

CabinetM MarTech Innovation Reports are a quarterly summary of new technology introductions, feature updates and acquisitions. They can be accessed without a gate on LibraryM.

Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

About the author

Allyson Delaney
Allyson Delaney is Content Marketing Coordinator at CabinetM, the marketing technology management platform, where she produces quarterly MarTech Innovation Reports, a weekly newsletter, video content, and more. She also led in the development of LibraryM, CabinetM's online MarTech Resource. With a passion for marketing and technology, she jumped into the martech industry shortly after graduating with her Bachelors in Communication & Media, and Marketing in 2020.

Fuel for your marketing strategy.