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Internet of ThingsStartup Landscape Trends and Insights
December, 2016
Internet of Things report outline
2
This report provides an overview of the Internet of Things (IoT) sector and is broken down into three sections
Sector Description
High-level sector metrics with sub-category
definitions
Trends & Insights
Infographics and data points around the Internet
of Things sector
Quarterly Activity
Major funding and exit events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup database and landscaping platform
IoT Sector Description
3
IoT startups are creating new business lines and disrupting old ones
The graphic above shows a sampling of companies in each category, stats as of December 2016
Internet of Things
Learn about our full report with 1,504 companies across 20
categories with $26B in funding
Hardware Platforms Software Platforms
Components User Interface
Agriculture Automotive
City and Buildings
Drones and Robotics
Education and Toys
Enterprise
Fitness Health Care
Home Industrial Lifestyle Retail
Security Smart Watches Tags and Jewelry Utilities and Energy
The Venture Scanner Innovation Quadrant for the Internet of Things
AVERAGE FUNDING ($M)
AV
ER
AG
E A
GE
(Y
EA
RS
)
IoT Enterprise
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
IoT Utilities/Energy
IoT Fitness
IoT User Interface
IoT Hardware
IoT Automotive
IoT City& Buildings
IoT Security
IoT Agriculture
IoT Software
IoT Components
IoT Home
IoT Drones
IoT Education
IoT Industrial
IoT Retail
IoT Health Care
IoT Lifestyle
IoT Smart Watches
IoT Tags
Internet of Things startups play in many different categories (1 of 3)
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IoT Agriculture 70 Startups, $1.2B Total FundingCompanies that create connected devices to enhance productivity of agricultural and farming industries.
IoT City and Buildings 77 Startups, $1.5B Total FundingCompanies that create devices to facilitate smart cities or manage the infrastructure of buildings.
IoT Drones and Robotics 120 Startups, $1.5B Total FundingCompanies that create unmanned aerial vehicles that could be controlled through remotes or apps.
IoT Enterprise50 Startups, $2.9B Total FundingCompanies that create connected devices to enhance the productivity of corporate enterprises.
IoT Automotive 66 Startups, $1.3B Total FundingCompanies that enable machine-to-machine communication in the automotive industry.
IoT Components 73 Startups, $1.2B Total FundingCompanies that manufacture the internal technologies of IoT hardware systems.
IoT Education and Toys44 Startups, $522M Total FundingCompanies that produce devices to facilitate education or those aimed at the kids market.
IoT Fitness143 Startups, $3.8B Total FundingCompanies that created connected devices focused on personal fitness and wellness solutions.
Category stats as of December 2016
Internet of Things startups play in many different categories (2 of 3)
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IoT Hardware Platforms70 Startups, $1.8B Total FundingCompanies that manufacture hardware systems that provide infrastructural support for IoT devices.
IoT Home231 Startups, $3.3B Total FundingCompanies that make devices focused on the residential real estate segment.
IoT Lifestyle and Entertainment 162 Startups, $1.6B Total FundingCompanies that create connected devices to enhance the overall lifestyle of the user.
IoT Security 48 Startups, $835M Total FundingCompanies that enable data privacy and data encryption for connected devices.
IoT Healthcare 188 Startups, $2.1B Total FundingCompanies that create connected devices focused on consumer and/or at-home health care solutions.
IoT Industrial58 Startups, $799M Total FundingCompanies that create connected devices to enhance the productivity of industrial manufacturing.
IoT Retail45 Startups, $441M Total FundingCompanies that create connected devices to help with the operation of retail stores.
IoT Smart Watches35 Startups, $199M Total FundingCompanies that create connected watches with sensors and applications.
Category stats as of December 2016
Internet of Things startups play in many different categories (3 of 3)
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IoT Software Platforms205 Startups, $3.6B Total FundingCompanies that build backend software systems that provide infrastructural support for IoT technology.
IoT User Interface 87 Startups, $2.4B Total FundingCompanies that produce software and devices that offer new ways to view and control other devices.
IoT Tags and Jewelry 60 Startups, $157M Total FundingCompanies that create tags, trackers, and smart jewelry that enable one to track items and products.
IoT Utilities and Energy35 Startups, $1.8B Total FundingCompanies that produce connected devices that help measure and manage energy and utilities usage.
Category stats as of December 2016
IoT Trends & Insights
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Enterprise and Utility categories have the best funded IoT startups
Startups in the IoT Enterprise and IoT Utilities/Energy categories have around $70M to $80M of VC funding per company on average
Average Funding by Internet of Things Category
Companies are categorized by function, and therefore can exist in multiple categories
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Ave
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Funding into IoT has grown substantially in recent years
Overall IoT VC funding grew at a CAGR of 38% from 2010-2015
Internet of Things Funding Over Time
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
To
tal F
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B)
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Mid-stage IoT startups are showing traction
The past few years have seen an expansion of mid-stage funding events, indicating VCs are happy with startup progress
Internet of Things Funding By Type Over Time
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fun
din
g ($
B)
Late Stage Series D Series C Series B Series A Seed
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IoT startups founded in 2011 lead in VC funding
Over the last decade, 22% of IoT funding has gone into startups founded in 2011
Internet of Things Funding By Vintage Year
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1.5
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
To
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g ($
B)
Year Founded
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IoT startups are a global phenomenon
Internet of Things Startup Count by Country
0 >934Companies
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Top VC investors are making bets in IoT categories
Selected Investor Activity in the Internet of Things
The above count represents a subset of overall investor activity
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Nu
mb
er o
f In
vest
men
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Number of Investments Number of Companies Backed
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IoT exit activity is growing and dominated by acquisitions
Exits within the IoT sector grew by 10x between 2010 and 2016
Internet of Things M&A and IPO Events Over Time
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Nu
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f Exi
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Public Acquired
IoT Quarterly Update
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Recent IoT funding events
There have been 100 funding events in the past 90 days, providing $1.5 billion in capital
Funding Statistics from Last 90 Days*
Company Amount Funding Type
$160,140,000 Series E
$120,000,000 Series B
$103,100,000 Series D
$100,000,000 Venture
$85,000,000 Series D
Notable Recent IoT Funding Events
*Graph shows only the funding types listed therein
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Fun
din
g E
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Recent IoT exit events
There have been 11 IoT exit events in the past 90 days, consisting of10 acquisitions and 1 IPO
Notable Recent Internet of Things Acquisitions
Company Acquirer Amount Date
$47B Oct 27, 2016
$400M Sept 6, 2016
Undisclosed Sept 28, 2016
Undisclosed Sept 22, 2016
Undisclosed Sept 21, 2016
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