Search Almost Did Not Make the Graph
January 30, 2016
I read “323 Marketing Tech Startups Fetched over $11B from VCs in 2015 (Research).” The write up suggested to me that a horse racing stable mentality appears to have some appeal for the venture capital crowd. The theory has two parts.
First, the outfits are acting a bit like sheep. Second, the belief is that some of these horses will win the Kentucky Derby. That’s fine. I don’t have to explain to investors where the money went nor do I have to figure out how to repay the investors who want their money back or a payout pronto.
The chart reveals another facets of the data. Here’s a tiny version of the chart:
You will have to consult the original post to read the labels on the y axis. Note that “search” appears, but it is a brushing shoulders in the long tail with SEO and market research. In short, at the far right hand edge of the y axis. Investors supporting the long shots are brave steed owners.
Now check out the title of the write up. Do you see “marketing tech”? I do. It strikes me that research is not important to “marketing tech” as a broad sector.
But what are the top three sectors sucking cash? Answer:
- Analytics
- Ad tech
- Design
- Social
- Data infrastructure.
Will search regain its former glory? Probably not. Mules amidst the stallions? Nah, search vendors can just change their marketing lingo.
Stephen E Arnold, January 30, 2016