industry spotlight

Retail Tech

Tap into the retail tech industry—where technology merges with consumer-centric strategies to enhance shopping experiences and business operations.

From bricks to clicks: the future of shopping

The retail tech industry is shaking up the way we do shopping. A surge in e-commerce is skyrocketing. The demand for contactless transactions is growing. And the consumer appetite for personalized shopping experiences is hugely increasing. An expected result—the industry is a hotbed for innovation.

Why it matters:

With huge market potential and the fact that the retail tech industry shines bright on VCs’ radars, it opens abundant opportunities for startups:

  • E-commerce and mobile commerce
  • Contactless payments and digital wallets
  • Supply chain optimization
  • Customer data analytics

Between the lines:

The more plentiful the untapped opportunities are, the more challenges the industry hides, such as integrating new tech, customer retention and security obstacles, and problems with attracting the right investments.

Our expert team is equipped with the knowledge needed to develop successful, investment-worthy ventures in the retail tech sector

$3B+
Funds secured
600+
Companies boosted
80+
Fields explored

What we do:

We aim to secure necessary financial support, assist with M&A options, and craft impeccable, insightful retail tech pitch decks and business blueprints.

Go deeper:

Explore our analysis of the retail tech market to learn about the latest trends, startup challenges, and key strategies for securing investment.

7x growth
The retail tech market is projected to grow sevenfold by 2032.

 

$7.3T
Online retail sales hit over $7.3T in 2023.

Driven by the surge in e-commerce, demand for personalized shopping experiences, and the rise of omnichannel retailing
23%

Of global retail sales were made online.

6/10

Customers have a desire to pay extra money for sustainable products.

82%

By 2025, over 82% of retail will adopt AI tech.

VENTURE LANDSCAPE

In 2022, the retail tech venture capital soared to $3.1B

Key verticals:

  • E-commerce platforms
  • Supply chain management
  • Payment processing solutions
  • Customer experience and engagement

Leading retail tech investors

Write to us to know more

Obstacles of retail tech startups

To be investors’ darling and carve a niche in the retail tech industry, it’s pivotal to address the following issues.

Integrating new technologies:

Retail tech startups usually develop cutting-edge technologies like AI, AR, VR, and IoT and try to integrate them within traditional retail environments. And this is surely not a piece of cake.

Why it matters

Not all retailers are ready to adopt new technologies, and not all technologies can integrate seamlessly with existing systems. So it all may cause:

  • Slow adoption rates
  • Limited market penetration
  • Reduced revenue growth

What it takes:

  • Demonstrate clear ROI
  • Offer trial periods
  • Provide robust support and training
  • Develop compatible technologies (one of the best solutions)

Securing investment:

Retail tech involves dealing with advanced technologies. And, of course, this process can’t be cheap. That’s why a funding problem is pivotal.

Why it matters

Without the necessary funding, retail tech startups may:

  • Struggle to develop or scale their solutions
  • Have problems with growth and innovation

What it takes:

  • Pitch to the industry-interested investors
  • Develop a strong market entry plan, business strategy, and financial model
  • Create a strong value proposition that highlights the unique aspects of your technology
  • Build an expert team with various skills and experience (especially related to retail, business, and technology)

Security concerns:

Running an innovative retail tech solution requires collecting and analyzing customer data. That’s why safety is not just a priority but a burning issue.

Why it matters:

If retail tech startups fail to comply with data protection regulations, it may cause:

  • Legal issues
  • Damage to customer trust

What it takes:

  • Implement strong data security measures
  • Ensure compliance with data protection regulations
  • Provide transparency in data usage
  • Allow customers to control their data

Customer retention:

Learn how to balance technological innovation with user-friendliness. When it comes to the retail tech industry, it’s not only about customer attraction but also customer retention—ensure your solution enhances the end-customer experience.

Why it matters:

If the technology does not positively impact the customer experience, it can lead to:

  • Poor adoption
  • Customer churn

What it takes:

  • Focus on user-friendly designs
  • Gather customer and retailer feedback regularly
  • Improve your technology based on feedback

FAQs

How attractive is the industry to potential retail tech investors?

The retail tech industry interests investors. First, it has a long-term market potential and significant room for innovation. Second, the industry has a wide range of opportunities for both startups and VCs. Plus, it aligns with sustainability and personalization trends.

If you are a retail tech startup, how easy is it to raise funding today?

Attracting funds for a retail tech startup is not a walk in the park. Yet, if a project meets investor expectations in terms of innovation, market fit, and scalability, the venture has all the chances to become investors’ darling.

How long does it take to create a pitch deck and financial model for a retail tech startup?

On average, our team needs two or three weeks to complete all the documentation. However, sometimes we may need more time, yet not more than a month, owing to a hectic schedule and project complexity. For more details, please, contact us.

What are the key mistakes retail tech startups make in their pitch decks?

Some presentations lack a coherent investment narrative, dampening the overall impact and steering investors towards projects that showcase more clarity and promise. Second, many fail to address the pivotal ‘Why now?’ question, presenting a poor go-to-market strategy and business model. Finally, most retail tech pitch decks fail to demonstrate traction. Like this, investors aren’t sure if everything you’re going to do will work.

How competitive is the retail tech market?

The retail tech market is highly competitive, with lots of startups and established players innovating in areas like e-commerce, customer experience, and supply chain management.

What services do you provide for investors looking to invest or already investing in retail tech?

We assist venture capitalists in evaluating their investment opportunities across the retail tech sector. Our team conducts thorough due diligence and presents findings in a concise, visually rich presentation packed with valuable insights. Plus, we ensure comprehensive fundraising services to portfolio companies across the retail tech sector and beyond.

Do you provide retail tech M&A support?

Absolutely! We provide support for your M&A objectives, whether within the retail tech field or other sectors. Our services encompass everything from the initial deal search and valuations to due diligence and collaboration after the deal is completed.

Do you make intros to retail tech VCs?

Surely! Our experts ensure connections between retail tech VCs and startups. We start with evaluating your project for the team structure, product, and capital expected to be raised. Afterward, we guide you in partnering with the retail tech VCs, fostering a productive relationship throughout and beyond the negotiation phase.

Do you have available data or research to purchase on the retail tech market?

Yes, we do! Our comprehensive retail tech market research includes industry reports, competition analysis, etc. We use only reliable data sources to collect the most relevant information for you, such as the industry’s challenges, market trends, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

We ensure growth and fundraising guidance to the new market entrants, steering them right from the early pre-seed phase through Series C and beyond.

Building a solution in retail tech? Get in touch with us

Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let’s chat!

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