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Economics and Finance

A Continued Downturn. How the Economy Will Impact B2B Sales in 2024

6 min read

Feb 12, 2024

Redrob

Disclaimer:

This article is the result of our team's efforts to analyze publicly available data, supplemented by insights gained from our past experiences. As a startup, we strive to contribute meaningful analysis to the public discourse, though we acknowledge that our interpretations may not be infallible. We recognize that there may be differing viewpoints and our findings might not align with all perspectives. Your feedback and constructive criticism are welcome as we navigate these complex topics together.


Essential Highlights of 2023

Decrease in Global VC Funding

In 2023, global venture capital (VC) funding fell to $221 billion, marking a 42% decrease from 2022's $381 billion. This significant reduction mirrors the wider economic downturn impacting the startup sector.

Shifts in Funding Stage Values

Median funding round sizes saw a decline in 2023. Seed-stage startups experienced a reduction in median funding to $2 million from the previous year's $3 million. Late-stage funding averages also dropped to $100 million from $150 million, reflecting a more cautious investment climate.

Shift in Marketing Strategies and Allocations

Despite economic challenges, over half of B2B tech companies (55%) increased their marketing budgets in 2023. This upward trend is expected to persist into 2024, with a focus on enhancing digital advertising, marketing tools, and website development.

Evolving Success Metrics

Companies escalated their target key performance indicators (KPIs) in line with the increased marketing budgets. In 2023, 55% of firms set higher KPI goals, surpassing the 21% that maintained consistent KPIs.


Essential Forecast Highlights for 2024

Mixed Economic Outlooks

While a segment of major global financial organizations retains an optimistic stance, our own research and comprehensive meta-analysis suggest that overall macroeconomic conditions are likely to be marginally worse than in 2023.

Projected Decrease in B2B Budgets

Continuing the current trend, it's anticipated that Business-to-Business (B2B) budgets will see a reduction of about 12%. This is expected to trigger a cascading effect on overall B2B expenditure, significantly affecting sales teams.

Shift Towards AI and Sales Tools

In response to tighter budgets, there's a growing dependence on artificial intelligence and sales enablement technologies to enhance productivity.

Rise of Remote and Virtual Sales

The trend of remote and virtual selling methods is predicted to continue its upward trajectory.

Focus on Account-Based Marketing

As generating revenue becomes increasingly vital, Account-Based Marketing (ABM) strategies, which focus on targeting specific accounts rather than broad marketing approaches, will become more prominent.

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All-in-one sales and recruitment platform for startups

All-in-one sales and recruitment platform for startups

24/7 Support

+1 (610) 516-6218

515 Madison Avenue 9th Floor New York City, NY 10022

Explore more opportunities within our network. Use the dropdown menu to seamlessly navigate between our company websites and discover your requirement.

USA

© 2023 McKinley Rice, Inc. All Rights Reserved.

All-in-one sales and recruitment platform for startups

All-in-one sales and recruitment platform for startups

24/7 Support

+1 (610) 516-6218

515 Madison Avenue 9th Floor New York City, NY 10022

Explore more opportunities within our network. Use the dropdown menu to seamlessly navigate between our company websites and discover your requirement.

USA

© 2023 McKinley Rice, Inc. All Rights Reserved.