Growing opportunities in B2B startups, FinTech bode well for marketers
To say that a gold rush is on for B2B tech start ups is an understatement but overall, investments in B2B tech were up 40 per cent to nearly $12bn this past month. Further, while investment in consumer firms is still relatively larger according to a story this week in Reuters, B2B tech investment is "very hot" with investors hunting for business models with the potential to be profitable at a very early stage.
Additionally, while investments in consumer outfits still outweighs B2B, the fact that B2B is having a better performance overall indicates that in the B2B tech sector 'as long as you are able to get the initial customer in place, there is potential for making money and continuing that business,' the story reports.
"There is a trend away from consumer unicorns and valuations," Andreas Liffgarden, chairman and co-founder of Soundtrack Your Brand which plans a U.S. launch this year, stated in the story. The company creates tailor-made music playlists for companies like Starbucks and McDonalds. The theory, originated by Spotify, is that the right music at fast food restaurants, retail stores and coffee shops will encourage consumers to linger longer and spend more. "I can feel it when we're out fundraising. Investors want real steady cash flow and proven business models."
This bodes well for B2B marketing and creative agencies searching for new business opportunities. In fact one of the most talked about areas in the B2B sector this week is investment management in FinTech, with thought leaders overwhelmingly tweeting about FinTech from venture capitalist funding and investment management to innovations in cross border payments and transfers. Additionally, where there is smoke there is fire with increasing investments by big banks - including Barclays, HSBC and Santander in the FinTech space. Further, according to PwC and Startupbootcamp, investment management will continue to be a hot trend throughout 2016 in FinTech.
Based on current growth in B2B tech - and FinTech in particular - B2B marketers should dig deeper and focus on what they do best. Supporting the strategy of FinTechs and start ups is key while also considering the growing interest from the investment management sector.