2022 was a challenging year for e-commerce as large companies like Shopify saw their growth slow from their pandemic peaks, and direct-to-consumer brands faced ever-higher customer-acquisition costs.
But venture capitalists see lots to be excited about for e-commerce in 2023. They see opportunity in investing in startups working to simplify online selling, especially in a time of economic uncertainty.
Insider asked 10 investors about the retail-tech startups they think will take off next year. They named startups solving a number of different problems for online sellers, from marketing and automation to payments technology.
Here are 14 retail tech startups chosen by investors:
Picked by: Forerunner Ventures principal Jason Bornstein
Relationship to startup: Investor; Forerunner led Balance’s Series B
What it is: A startup powering payments for B2B e-commerce
Why it’s hot: Balance’s focus is on bringing B2B e-commerce online via improved payments technology. Its offerings include a customizable B2B checkout experience, white-label invoicing, and automated vendor payouts.
“We remain committed to removing the friction notoriously associated with offline payments and offering B2B merchants something better — an easier way to accept payments, extend net terms, and truly grow their online commerce channel,” Bar Geron, a cofounder and the CEO of Balance, said.
Bornstein pointed to research that has estimated the global B2B e-commerce market could reach $25 trillion by 2028.
“Relative to the sheer growth of e-commerce amongst consumers and the brands and products catering to them, there’s been very little progress in B2B e-commerce enablement — and that’s where we see an enormous opportunity today,” he said. “The more efficient B2B commerce can become through digitization, the lower the cost of living for people everywhere.”