This document summarizes an analysis of the state of the Internet of Things (IoT) startup landscape in 2016. Some key findings include:
- Industrial/enterprise IoT has seen the most deals, with manufacturing leading the way in this category.
- Auto/transport deals attract the highest average funding per deal due to connectivity in connected vehicles and autonomous vehicles.
- Drones remain hardware-focused but surveying/mapping and inspection are growing application areas.
- Infrastructure, health, and auto/transport may see growing deal numbers while wearables and home decline.
- Later stage funding and larger M&A deals are on the rise, with potential for billion dollar IoT exits.
- Platform
3. #IOTSTATEOFTHEUNION
Drawing A Parallel Between Electricity And The IoT
TV
AC
RADIO
MICROWAVE
VCR
WASHER
DRYER
FRIDGE
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990
ELECTRICITY
100
90
80
70
60
50
40
30
20
10
0
PercentageofHouseholds
Source: The Atlantic
4. #IOTSTATEOFTHEUNION
Media Coverage Is Turning More Negative
Internet Of Things Struggles As Use
Of Smart Home Gadgets Flatlines
August 27, 2016
Why Smartphones Are Bringing Down
Internet Of Things Revenue Forecasts
August 4, 2016
Intel’s Cloud And IoT-Focused
Businesses Deliver Disappointing
Growth
July 21, 2016
The Internet Of Things Is More Hype
Than Reality For Many Tech Giants
August 16, 2016
5. #IOTSTATEOFTHEUNION
Sliding Into The Trough Of Disillusionment?
INNOVATION
TRIGGER
PEAK OF INFLATED
EXPECTATIONS
TROUGH OF
DISILLUSIONMENT
SLOPE OF
ENLIGHTENMENT
Expectations
Source: Gartner; Wing
PLATEAU OF
PRODUCTIVITY
Time
2013
2014
2015
Feels like we are here
2012
6. #IOTSTATEOFTHEUNION
Thoughts From An IoT Pioneer
“If you had bet against the
electrification of the home in the late
1800s, then your bet would have
been seriously wrong. And it’s the
same situation with the Internet of
Things today.”
Tony Fadell
Founder, Nest
8. #IOTSTATEOFTHEUNION
To Investigate The IoT Startup Landscape, We…
• Looked at the pre-funding environment
• Built a database of 2335 IoT deals (Jan 2013 - Aug 2016)
• Examined IoT exit data
• Interviewed IoT pioneers
9. #IOTSTATEOFTHEUNION
GitHub IoT Repo Growth = Builders Are Building Fast
2013 2014 2015 2016*
9261
4368
934
239
10,000
8,000
6,000
4,000
2,000
0
Number of repositories
Containing IoT keyword
*Annualized
10. #IOTSTATEOFTHEUNION
Kickstarter Shows A Slowdown In Growth
*Annualized
0
20
40
60
80
100
120
140
2013 2014 2015 2016*
IoT Projects
(screened from flight, wearables, IoT, hardware)
NumberoffundedIoTKickstarterprojects
12. #IOTSTATEOFTHEUNION
What Are The Builders Building?
0
100
200
300
400
500
600
Industrial /
Enterprise
Wearables Home Infrastructure Drones Robotics Health Auto /
Transport
Other
* To August 31, 2016
NumberofDeals,2013-2016*
Source: Wing IoT Analysis
13. #IOTSTATEOFTHEUNION
Industrial / Enterprise IoT Leads The Way In Deals
* To August 31, 2016
** Average $ per deal
0
100
200
300
400
500
600
Industrial /
Enterprise
Wearables Home Infrastructure Drones Robotics Health Auto /
Transport
Other
NumberofDeals,2013-2016*
$4.18M**
$5.76M**
Source: Wing IoT Analysis
14. #IOTSTATEOFTHEUNION
There Is A Lot Of Activity In Manufacturing
* To August 31, 2016
0
10
20
30
40
50
60
70
80
90
100
Platform ManufacturingBuilding ManagementSupply Chain / LogisticsHealthcare Retailing Other Agriculture EnergyConst. / Infrastructure
NumberofDeals,2013-2016*
174
Source: Wing IoT Analysis
16. #IOTSTATEOFTHEUNION
What’s Attracting The Biggest Dollars Per Deal?
Other
Wearables
Home
Drones
Robotics
Industrial / Enterprise
Health
Infrastructure
Auto / Transport 7.79
7.65
6.07
5.76
5.25
5.01
4.96
4.18
0.23
Average $ Per Deal (M)
Source: Wing IoT Analysis
17. #IOTSTATEOFTHEUNION
What’s Going On In Auto / Transport?
Other
Wearables
Home
Drones
Robotics
Industrial / Enterprise
Health
Infrastructure
Auto / Transport 7.79
7.65
6.07
5.76
5.25
5.01
4.96
4.18
0.23
Average $ Per Deal (M)
Source: Wing IoT Analysis
19. #IOTSTATEOFTHEUNION
Connectivity First
* To August 31, 2016
0
5
10
15
20
25
30
35
40
45
Connected
Vehicles
Autonomous
Vehicles
Platform Traffic
Management
Driver
Assistance
Fleet
Management
Other Security
NumberofDeals,2013-2016*
Source: Wing IoT Analysis
20. #IOTSTATEOFTHEUNION
The Path To Autonomy
• Connected car = still early days
• Autonomous vehicles = even earlier…
• …but strategic acquisitions in 2016
Acquired by UberAcquired by GM
21. #IOTSTATEOFTHEUNION
Drones: Hardware Still Rules…
* To August 31, 2016
NumberofDeals,2013-2016*
0
10
20
30
40
50
60
70
80
Hardware
Manufacturer
Platform Mapping /
Surveying
Other Inspection /
Monitoring
Film /
Photography
Agriculture Security /
Safety
Logistics
Source: Wing IoT Analysis
22. #IOTSTATEOFTHEUNION
… But Who Rules Hardware?
• Hardware + Services common
• Surveying/mapping + Inspection/monitoring
• China wins in consumer hardware
vs
23. #IOTSTATEOFTHEUNION
Some Categories Look Set To Decline in 2016...NumberofDeals,2013-2016*
0
50
100
150
200
250
2013 2014 2015 2016*
INDUSTRIAL /
ENTERPRISE
WEARABLES
HOME
ROBOTICS
*Annualized
Source: Wing IoT Analysis
24. #IOTSTATEOFTHEUNION
…While Others Appear Likely To GrowNumberofDeals,2013-2016*
0
20
40
60
80
100
120
140
2013 2014 2015 2016*
DRONES
INFRASTRUCTURE
HEALTH
AUTO /
TRANSPORT
*Annualized
Source: Wing IoT Analysis
34. #IOTSTATEOFTHEUNION
Platforms By Category
* To August 31, 2016
NumberofDeals,2013-2016*
0
20
40
60
80
100
120
140
160
180
200
Industrial /
Enterprise
Home Infrastructure Wearables Drones Robotics Health Auto /
Transport
Source: Wing IoT Analysis
35. #IOTSTATEOFTHEUNION
Securing The Internet Of Things
Chinese hackers take over moving
Tesla from 12 miles away
September 20, 2016
How Hacked Cameras Are Helping
Launch The Biggest Attacks The
Internet Has Ever Seen
September 25, 2016
Mirai IoT Botnet Wasn't Alone in
Massive DDoS Attack: Akamai
October 6, 2016
Is IoT Security a Ticking Time Bomb?
September 1, 2016
36. #IOTSTATEOFTHEUNION
Securing The Internet Of Things
Home Interfaces
Wearable Health
Data/Analytics
AI
Platforms
Construction and Infrastructure
Agriculture
Manufacturing
Building Management
Retail Technology
Energy and Utilities
Supply Chain
Logistics
Inspection and Monitoring
Mapping and Surveying
Drone Hardware
Drone Fleet Management
Anti-Drone Technology
Embedded Home Systems
Home Indoor Environment
Wearable Quantified Self
Home – Outdoors
Family, Kids, and Pet Technology
Appliances
Robotics
Autonomous Vehicles
Driver Assistance
Fleet Management
Connected Vehicles
Traffic Management
Connected Cities
General Security
1277 Deals
IoT Security
45 Deals
Global Deal Data Set, 2013-16 IoT Data Set, 2013-16
38. #IOTSTATEOFTHEUNION
Generating Insights From The Internet Of Things
“What really distinguishes
data-first applications…is the
virtuous data cycle that they
make possible.”
- Peter Wagner, Co-Founder of Wing
42. #IOTSTATEOFTHEUNION
Thoughts From An IoT Pioneer
“The real power of the Internet of
Things is that it transforms a static
product into a dynamic service. Once
a thing becomes connected, it
becomes part of a much larger fabric
of things. We’re still only in the first or
second innings of this shift.”
Jahangir Mohammed
Founder, Jasper
43. #IOTSTATEOFTHEUNION
autonomous vehicles, mesh networks, predictive maintenance, bluetooth
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www.wing.vc, Samsung, gateways, AllJoyn, point of sale, machine learnin
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ystems, advanced robotics, data acquisition, energy consumption, inspect
ITU-T SG20, raspberry pi, IIoT, arduino, RIOT OS, Bosch, low power, fle