Venture capital deal-making in ecommerce enablement grew in the first quarter, surpassing the fourth quarter of 2024 in both deal count and value.
PitchBook, a financial data provider, reported that 134 deals were closed in the first quarter, a 14.5% increase from the previous quarter. Investment reached $2.9 billion, a 7.1% rise from Q4 2024, and the highest value since Q4 2023. This marks the highest quarterly deal count since Q1 2023, says PitchBook.
Despite the positive numbers, investment in ecommerce has stabilized since a pandemic-driven spike in 2020. From 2014 to 2019, investments consistently increased, but since 2023, the market has plateaued amid economic uncertainty.
Ecommerce deal-making to date in 2025
PitchBook expects deal activity to stay steady throughout 2025, with attention to the effects of tariffs and economic conditions. Tariffs could raise costs for businesses, reducing spending on software. This might lead some merchants to cut back on purchases, while others could invest in software and AI to improve efficiency and sustain growth, Pitchbook says.
Early-stage investments have shown improvement, with deals in this category increasing since mid-2024. Early-stage rounds now make up 56% of total deals, compared to 60% for later-stage rounds in 2023. This shift indicates a more balanced investment environment.
In the coming months, the growth of AI and interactive commerce is expected to change how consumers shop. Companies like Perplexity, Shopify, and Anthropic are exploring new ways to engage consumers through AI-driven tools. However, short-term challenges like tariffs and supply chain issues may slow adoption as businesses focus on immediate concerns like the holiday season.
Although valuations for early-stage startups remain conservative, the median pre-money valuation for ecommerce companies rose from $46.8 million in 2024 to $83.1 million in Q1 2025, driven by sturdy growth rounds. Investors are still cautious, weighing long-term potential against current economic challenges.
The outlook for ecommerce enablement investments in 2025 is positive, but factors like tariffs and economic uncertainty will continue to impact deal activity, according to PitchBook.
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