Editor’s Note: B2B marketplaces are still the most active and fastest-growing segment in B2B digital commerce. Today, there are more than 500 types of B2B marketplaces in the U.S. alone, and more on the way. In the past two years, billions of public and private investor money has flowed into B2B marketplace companies. There have been several high-profile initial public offerings and companies with valuations in the hundreds of millions and more.

But the times are changing. Investors are still pumping money into B2B marketplace development, but the brakes are on, money is harder to come by, and investors are asking tougher questions. Investors are looking at only the best-run companies with good products, helpful technology, and a sustainable path to a profitable, growing business. Bowery Capital may know B2B marketplace investment better than any other investment firm. In this question- and-answer article, founder and general partner Mike Brown, general partner Lauren Straub and senior associate Patrick McGovern  look at the current state of investment and who is — and isn’t — getting funded.