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


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BY : Diego GutiérrezOctober Thu, 2013

investorsAccording 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.

"In Spain, it is common to have difficulties in obtaining investment from the venture capital is when the startup is venture-oriented. For example, funds such as 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 In these cases, we recommend targeting the search towards potential industrial partners in the sector in question," advises Diego Gutierrez, corporate finance expert at ABRA INVEST.

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