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.
The post AI fuels investment surge in Q2 amid slowdown in new products appeared first on MarTech.
About the author
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.
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