Agency and Marketing Solutions Annual Report 2025

Global Agency & Marketing Funding

Agencies & Marketing Funding by Year (In Millions of USD)

585

Total Deal Size in ($B) # of Deals

474

Following the global trend across all industries, funding for agencies and marketing solutions surged in 2021. Although the pace slowed significantly in 2023, recent indicators suggest enduring potential in the sector.

337

280

256

Key trends:

• Funding Volume: Total deal volume has remained steady after a decline in 2022. Although the pace has slowed, broader economic factors, such as interest rate cuts and a significant industry shift toward digitization and AI, are expected to have a positive impact in the coming years. • Shifting Investment Strategies: In 2024, while the share of later-stage VC remained the highest, consistent with previous years, there was a slight increase in the share of early-stage VC and seed rounds compared to 2023. • Need for Digital Transformation: The rapidly evolving digital landscape necessitates a digital transformation for agencies to remain competitive and meet the changing demands of consumers. As a result, there is an increased need for funding, which is expected to drive funding volumes next year.

$6,245

$14,362

$11,969

$5,465

$4,271

2020

2021

2022

2023

2024

159 Funding Volume by Quarter (In Millions of USD)

Total Deal Size in ($B) # of Deals

148 152 152

133

118

109

94

94

88

75 74

67 72 73 68 66 66 64 60

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024

Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed. Note: Companies valued between $5 - $150 million were considered lower middle market.

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