The B2B marketplace sector is booming with rapid growth, but investors are adopting a cautious approach, focusing on sustainable profitability. Investment trends, expectations for 2024, and the impact of artificial intelligence on marketplaces are key areas of discussion.
B2B marketplaces are experiencing rapid growth and have positioned themselves as a prominent sales channel in business digital commerce. According to the upcoming 2024 B2B marketplace report by Digital Commerce 360, substantial expansion is anticipated. However, B2B marketplace investors are increasingly cautious, emphasizing sustainable profitability.
In a recent interview, Patrick McGovern of Bowery Capital discussed investment trends and expectations for B2B ecommerce companies. He noted that 2023 saw a decline in marketplace funding compared to previous years, but expects an increase in 2024 driven by potential efficiencies from artificial intelligence (AI). AI could reduce the need for extensive account management support, making these marketplaces more attractive.
Notable verticals attracting investment include marketplaces dealing in large commodity markets and specialized labor markets, particularly in healthcare. Successful platforms like Plug, managing transactions for aftermarket electric vehicles, and Waypoint, a fertilizer and commodity chemical marketplace, exemplify strong investment potential. Additionally, Faire, which connects retailers with brands, stands out as a leading platform raising significant capital and achieving high transaction volumes.
Digital Commerce 360 invites nominations for game-changers in the Global B2B eCommerce Industry Awards and offers a complimentary subscription to its B2B News, covering significant industry trends.
