Dealroom: B2B Market Report 2022

Dealroom released a new report, “B2B Market in 2022”. Venture capital firms are shifting from consumer-focused startups to B2B.

Horizontal and vertical expansion

The B2B market is gaining ground due to the increasing adoption of digital solutions by decision makers, access to more financing options, and the ability to manage more complex value chains.

Over time, B2B marketplaces have expanded across their industry value chain. This expansion is driven by advancements in 3 main advanced capabilities: supply and demand aggregators, procurement tools, and financing solutions.

Going forward, vertical and managed markets are expected to generate and capture more value in complex value chains and focus on niche industries such as commodities.

Where is the value concentrated?

Consumer goods, logistics and lending created the most value for the B2B market.

While consumer products have many well-known major players in the market, such as Faire and Udaan, new target customers and industries are emerging. More complex markets have room for growth, and investors and founders are creating more and more value in the logistics and lending markets as the backbone of market development.

B2B, the elastic part of the market

The market didn’t have an easy 2022, but B2B held its own. While the B2C market lost 17% of enterprise value in the first half of 2022 and venture capital funding fell 40%, B2B’s enterprise value grew 3% and another metric fell only 10%.

B2B market has huge growth potential

B2B markets are among the fastest growing for venture capital. The sector is one of the fastest growing sectors since 2017, increasing 4.6x, outperforming fintech (3.1x), health (2.6x), and transportation (1.6x).

Venture capital funding in the B2B market has grown significantly over the past five years, but funding levels are still only 19% of their B2C counterparts, leaving room for growth.