Do investors prefer you to sell to businesses (B2B) or consumers (B2C)?

10/10/2013
Diego Gutiérrez
Do investors prefer you to sell to businesses (B2B) or consumers (B2C)?

According to CB insights data, B2B technology investments are growing rapidly, accounting for 70% of the 50 largest deals, up from just 38% in 2011.

In 2013 $2.2Bn of investment and 70% of operations for B2B companies.

In 2011, investments in B2C startups accounted for 62% of the 50 largest totaling $3.18Bn, among which were Gilt Groupe and AirBnB. Today, investors have shifted the trend towards business-to-business (B2B) oriented startups.

In fact, to date 70% of the 50 largest deals have gone to B2B startups for a total of $2.2Bn. By contrast, B2C startups have raised $1.28Bn of which $450M have come from two deals. Uber and Pinterest.

Favourable opinions among experienced investors

According to statements by Bijan Sabet of Spark Capitalalthough he has invested in a large number of B2C startups such as Tumblr and twitterrecently opined that although interest in B2C remains high, the opportunities in b2B are entirely reasonable, such as in the fields of: web shopping services, security, cost control, customer support, data centre applications, HR, payroll, sales, etc.

In Spain, the B2C vision still predominates.

«En España es habitual tener dificultades para obtener inversión de los venture capital cuando la startup está orientada a empresas. Por ejemplo fondos como Cabiedes or Vitamin KAlthough they do not reject B2C outright, they have a clear orientation towards B2C. However, there are also funds specialising in B2B such as Fitalent of the group everis En estos casos, recomendamos orientar la búsqueda hacia potenciales socios industriales del sector en cuestión» aconseja Diego Gutierrez experto en finanzas corporativas en ABRA INVEST.

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