For this quarter's funding analysis, let's examine how average funding in the internet of things (IoT) sector is evolving. The graphic below shows the IoT average funding across all deals over time by quarter.
As the graphic demonstrates, internet of things average funding deal size in Q1 2019 was at $42M, which increased by 69% from the $25M in the same quarter last year. The average funding deal size has demonstrated robust growth, with the average funding last quarter around 8 times larger than it was 5 years ago. The top three funding events in Q1 2019 include a $1.3B round into OneWeb, a $600M round into Horizon Robotics, and a $245M round into Niantic.
Here is our Q1 2019 summary report on the internet of things startup sector. The following report includes a sector overview and recent activity.
The internet of things (IoT) industry has seen 3,580 investors and $79B total all time funding. Let's analyze which IoT categories have the most number of investors actively financing the startups. The graphic below highlights IoT categories based on the number of investors in each category.
As the graphic demonstrates, IoT Health Care has the highest number of investors at 810, with IoT Software Platforms right behind at 803. In addition, the average number of investors across all IoT categories is 385. IoT Health Care companies create connected devices that track health metrics or help improve health well-being. IoT Software Platform companies build backend software systems that provide infrastructure for IoT companies.
As we make our way through Q1 of 2019, let's look back on 2018 and analyze how funding in the IoT sector compares to previous years. The graphic below shows the total annual IoT funding amounts over time.
As the graphic demonstrates, 2018 was a record year for IoT funding at $26B. It represents a staggering 94% increase from the previous year’s funding. In addition, IoT funding grew at a CAGR of 54% over the past 5 years. Some of the largest funding events in 2018 include a $12.8B round for JUUL, a $1.1B round for View, an $820M round for UBTech Robotics, and a $550M round for Peloton.
The internet of things (IoT) industry has seen $77B in total all time funding. Let's analyze the investors making bets into IoT and identify the most active firms.
The graphic below shows IoT investors based on their number of investments into the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this graphic.
As the graphic demonstrates, SOSV has made the most bets in the IoT sector with 145 investments. Techstars follows with 82 investments. Examples of companies that SOSV invested in include Leap Motion, Particle, Nura, and Bloomlife. It's interesting to note that Intel Capital, Qualcomm Ventures, and GE Ventures are on this list, as sometimes they operate as corporate investors in this space. Let's see which investors make their way onto this list in 2019!
Now that 2018 is complete, let’s see how exit activity for the internet of things (IoT) compares to previous years. The graphic below shows the total annual IoT exit events over time.
As the graphic demonstrates, 2018 saw a dip in IoT exit activity compared to the previous year. The 47 exit events in 2018 represent a 23% decrease from the 61 exit events in 2017, which was the highest year on record for exit activity. However, IoT exits are still on a general upward trend, with a 5-year CAGR of 31% from 2013 to 2018. Let's see if the IoT exit activity in 2019 will jump back up to the 2017 level.
Here is our Q4 2018 summary report on the internet of things startup sector. The following report includes a sector overview and recent activity.
This blog post examines the different components of the IoT sector and how they make up this startup ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
IoT Home Is the Largest Internet of Things Category
Let’s start off by looking at the Sector Map. We have classified 2194 IoT startups into 20 categories that have raised $62 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that IoT Home is the largest category with 331 companies. These companies create connected devices focused on residential segment usage. These devices include home security, home automation, and energy management systems. Some example companies are Eero, Leeo, Tado°, and Netatmo.
Let’s now look at our Innovation Quadrant to find out the funding and maturity of...
We’ve previously highlighted that internet of things (IoT) funding saw growth in recent years. This blog post will take a closer look at the trends within the individual IoT categories. From our analysis, we notice that the IoT Fitness category leads in both Q3 and overall funding. We'll discuss this with some charts below.
The IoT Fitness Category Leads Internet Of Things In Q3 Funding
To start off, let’s review the amount of funding raised this quarter per category within IoT.
The above graphic highlights that the IoT Fitness category leads the sector in Q3 funding with $1B. IoT Lifestyle category follows in second place with $0.8B in Q3 funding.
IoT Fitness companies create connected devices that track fitness and exercise metrics. Such devices include healthy eating trackers, exercise tracking wristbands, and smartphone-controlled shoes. Some example companies in this category include Moov, Sensoria, Striiv, and Atlas Wearables.
Let’s now investigate how...
Here is our Q3 2018 summary report on the internet of things (IoT) startup sector. The following report includes a sector overview and recent activity.
The internet of things (IoT) sector has experienced rapid developments in recent years. Its applications can be observed in all industries from manufacturing to retail to healthcare. In addition, we’ve analyzed that its funding and exit activity are on generally upward trends.
We will now take a closer look at the different components of the IoT sector and how they make up this startup ecosystem. This blog post will illustrate what the major sector categories are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
IoT Home Is the Largest IoT Category
Let’s start off by looking at the Sector Map for the IoT sector. We have classified 2164 IoT startups into 20 categories that have raised $57 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that IoT Home is the largest category with 329 companies. These...
Last quarter we observed that internet of things (IoT) investments are increasing over time. This quarter we are performing a deeper analysis on our IoT research platform to examine funding by category. Our analysis reveals two key takeaways:
- The Drones and Robotics category leads the sector in Q2 funding
- The Drones and Robotics category also had the highest funding growth percentage
We’ll explain these takeaway with some graphics and discussions below.
The Drones and Robotics Category Leads IoT in Q2 Funding
To start off, let’s review the amount of funding raised this quarter by each category within IoT.
The above graphic shows that the Drones and Robotics category leads the sector in Q2 funding with $1.3B. Its funding is 3 times higher than that in the next category, Health Care at $0.4B.
So we’ve observed how different IoT categories stack up in their Q2 funding. But how do these categories’ funding growth rates compare with one another? Let’s...
Here is our Q2 2018 summary report on the internet of things startup sector. The following report includes a sector overview and recent activity.
We’ve previously discovered that exits within the internet of things (IoT) sector are showing strong growth over time. Now armed with the data through June 2018, we’re conducting a mid-year status check on the total IoT exits by year.
After taking a deeper dive on our IoT report and research platform, we observe that if the current trend holds, IoT exit activity in 2018 will be lower than in 2017.
2018 Mid-Year IoT Exit Activity Lower Than 2017 But Higher Than 2016
Let’s take a closer look at the number of IoT exit events by year.
The above graphic shows 26 exits in the first half of 2018. This is 43% of the 2017 total. Comparing Q1-Q2 exits only, 2018 is down slightly from 2017 but running ahead of 2016.
For the past three years, Q3 and Q4 accounted for 57% of total exit events on average. If that trend holds, 2018 will have around 60 exit events. That would be lower than the number of exits in 2017 but higher than that in 2016.
Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.
Last week, we kicked off our sector map update with Part 1. You can read that blog post here.
This post is the second of a two-part series. Below you will find sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality.
Artificial Intelligence: 13 categories, 2161 companies, $32B in funding
Internet of Things: 20 categories, 2151 companies, $52B in funding
Marketing Technology: 15 categories, 1771 companies, $33B in funding
Real Estate Technology: 12 categories, 1649 companies, $48B in funding
Retail Technology: 21 categories, 1746 companies, $59B in funding
Security Technology: 14...
The internet of things (IoT) sector has seen vibrant funding and exit activity over the past few years. How have its funding trends evolved over time? On our internet of things research platform, we have analyzed the data through 2017 and can conclude that the investments in IoT have become more substantial over time.
We have come to this conclusion from the following three takeaways:
- Funding amounts are seeing robust growth at the annual level
- Funding events are seeing a decline in recent years
- Average funding per deal amounts are growing
We will illustrate these takeaways with a series of graphics to show the trend of IoT investments over time.
IoT Funding Amounts Seeing Robust Growth Annually
We will start off by examining the IoT funding trends over the years stacked by quarters.
This graph illustrates that IoT funding saw explosive growth at the annual level. Specifically, the CAGR in funding amounts from 2012 to...
Here is our Q4 2017 summary report on the Internet of Things (IoT) startup sector. The following report includes an overview, recent activity, and a category deep dive.
To learn more about our complete Internet of Things (IoT) report and research platform, visit us at www.venturescanner.com or contact [email protected].
The Internet of Things sector (IoT) continues to get a lot of buzz in the technology industry. Connected devices have improved our professional and personal lives in every aspect from industrial operations to medical procedures to home security. Yet what are the different components of IoT and how do they make up this startup ecosystem? On our IoT research platform, we have classified the companies in the sector into functional categories. This blog post examines these categories and how they compare with one another through a series of graphics.
IoT Home Is the Largest Internet of Things Category
Let’s start off by looking at the Logo Map for the Internet of Things sector. As of January 2018, we have classified 2,130 IoT startups into 20 categories which collectively raised $50 billion in funding. The Logo Map highlights the number of companies in each category and a random sampling of these companies.
We can see from the Logo Map above that IoT Home is the largest Internet...
The following graphs highlight the exit activity in the Internet of Things sector. The graphics include data through August 2017.
The above graph summarizes the number of exits (acquisitions and IPOs) in each Internet of Things category. The IoT Software Platforms category leads the sector with 8 IPOs and 39 acquisitions. The IoT Home category follows behind with 4 IPOs and 25 acquisitions.
The above graph summarizes the number of exits (acquisitions and IPOs) in Internet of Things by year. 2016 currently leads the sector with 2 IPOs and 53 acquisitions, with 2015 following behind with 7 IPOs and 31 acquisitions.
We are currently tracking 2067 IoT companies in 20 categories across 53 countries, with a total of $42.5 Billion in funding. Click here to learn more about the full IoT market report.
The following graphs highlight venture investing trends into the Internet of Things (IoT) sector. The graphics include data through August 2017.
The above graph compares the total venture funding in each IoT category to the number of companies in the category. The IoT Software category leads in funding at around $5B. IoT Home leads in company count at just over 300 companies.
The above analysis summarizes the average company funding in each IoT category. The IoT Enterprise category leads the sector with around $76M in average funding per company, followed by the IoT Automotive category with around $67M in average funding per company.
We are currently tracking 2062 IoT companies in 20 categories across 53 countries, with a total of $42.5 Billion in funding. Click here to learn more about the full Internet of Things market report.