Infinium study reveals: MarTech startups fail to address core marketing needs
MIAMI, FL / ACCESSWIRE / July 11, 2024 / A new study by the U.S.-based Venture Studio Infinium reveals a significant disconnect between the tools new MarTech startups are creating and the actual needs of marketing professionals.
During its research, Infinium surveyed 100 heads of marketing and marketing managers and analyzed data on US-based tech startups from PitchBook. The company discovered that marketing specialists need more solutions for budgeting (18.45% of respondents), market analysis (21.43%), and strategic planning (14.88%). Yet, among the 41 startups founded in the MarTech and AdverTech sectors since January 1, 2023, only four offer market analysis products, a mere one is developing tools for strategic planning, and none assist with marketing budget planning, data from Infinium shows. Instead, most new players focus on performance marketing tools.
Co-founder and CEO at Infinium Dawid Siekiera believes that this trend stems from a prevailing practice in the market where founders create solutions first and then seek an audience, rather than aligning their product development to meet the actual needs of marketing professionals.
One core reason for this issue is the current pattern in the behavior of venture capitalists. They tend to back companies that promise to disrupt existing models across various sectors. This mindset drives founders to prioritize innovation over relevance, leading to a plethora of tools that, while technologically advanced, fail to address the fundamental pain points of marketing teams, Dawid Siekiera adds.
Venture studios, he believes, offer a fresh approach. Unlike traditional venture funds, they not only provide funding but also bring in expertise and help founders pivot their ideas until they meet real market needs. "They start from the problem, understanding current market trends and pain points, and then solve these problems with existing technologies or innovative approaches," Dawid Siekiera further explains.
Finding new partners like venture studios can benefit startups in the current environment when the volume of venture investments in MarTech is decreasing. According to a recent report by CabinetM, funding dropped by 87% compared to the same period in 2023, plummeting from $13.2 billion in Q1 2023 to only $1.8 billion in Q1 2024.
At the same time, the demand for MarTech is constantly growing, fueled by the rate of internet usage and rapid technological advancements. A shortage of skilled workers also contributes to the heightened demand for software solutions that can optimize marketing processes. According to recent data, in May 2024, there were already 14,106 technology products, compared to 11,038 products in 2023, marking a 27.8% year-over-year increase.
A new study by the U.S.-based Venture Studio Infinium reveals a significant disconnect between the tools new MarTech startups are creating and the actual needs of marketing professionals.
During its research, Infinium surveyed 100 heads of marketing and marketing managers and analyzed data on US-based tech startups from PitchBook. The company discovered that marketing specialists need more solutions for budgeting (18.45% of respondents), market analysis (21.43%), and strategic planning (14.88%). Yet, among the 41 startups founded in the MarTech and AdverTech sectors since January 1, 2023, only four offer market analysis products, a mere one is developing tools for strategic planning, and none assist with marketing budget planning, data from Infinium shows. Instead, most new players focus on performance marketing tools.
Co-founder and CEO at Infinium Dawid Siekiera believes that this trend stems from a prevailing practice in the market where founders create solutions first and then seek an audience, rather than aligning their product development to meet the actual needs of marketing professionals.
One core reason for this issue is the current pattern in the behavior of venture capitalists. They tend to back companies that promise to disrupt existing models across various sectors. This mindset drives founders to prioritize innovation over relevance, leading to a plethora of tools that, while technologically advanced, fail to address the fundamental pain points of marketing teams, Dawid Siekiera adds.
Venture studios, he believes, offer a fresh approach. Unlike traditional venture funds, they not only provide funding but also bring in expertise and help founders pivot their ideas until they meet real market needs. "They start from the problem, understanding current market trends and pain points, and then solve these problems with existing technologies or innovative approaches," Dawid Siekiera further explains.
Finding new partners like venture studios can benefit startups in the current environment when the volume of venture investments in MarTech is decreasing. According to a recent report by CabinetM, funding dropped by 87% compared to the same period in 2023, plummeting from $13.2 billion in Q1 2023 to only $1.8 billion in Q1 2024.
At the same time, the demand for MarTech is constantly growing, fueled by the rate of internet usage and rapid technological advancements. A shortage of skilled workers also contributes to the heightened demand for software solutions that can optimize marketing processes. According to recent data, in May 2024, there were already 14,106 technology products, compared to 11,038 products in 2023, marking a 27.8% year-over-year increase.
About Infinium Venture Studio
Infinium is a startup factory designed to enhance the entrepreneurial process by nurturing innovative ideas, backing exceptional founders, and providing the resources needed to transform sectors. Their team of creatives offer a wealth of experience to help revolutionize industries of choice, be it FinTech, Cybersecurity, Productivity, MarTech or SalesTech.
Media Details:
Company Name: Infinium Venture Studio
Company Media Contact: Mike Podlas
Email: info@infinium.vc
Company Website: https://www.infinium.vc/
SOURCE: Infinium Venture Studio
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