Wing's update to the IoT State of The Union 2016 report.

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IoT Startup State Of The Union: An Update
Martin Giles
@Wing_VC | www.wing.vc

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In October, we published our first annual report on IoT startups

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Much has happened since then. For instance...

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Why an update now?
By the time we published our report in October, we'd amassed 2335
deals from Mattermark, Pitchbook, and Crunchbase, covering the period
between 2013 and mid-2016. To get the State of the Union done in
time, we had to stop data collection on August 31.
Now, with 2016 over, we can look back and see how the year ended.
A number of things are worth highlighting…

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Our “Wingdex” of IoT deal activity fell in 2016 for the first time
in several years...but total dollars invested rose again

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This reflects a number of large later-stage deals that drove up
average deal size
$200M
$173M
$206M
2016 DEALS

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We also saw a greater percentage of deals between $5M and
$30M, pointing to a growing “middle class” of IoT startups
$20M
$16M
$13.7M
2016 EXAMPLES

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Most IoT Wingdex sectors fell further than we had expected in
the last few months of 2016…

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…but Autos and Health exceeded expectations

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In Autos, the most interesting trend was a rise in deals for
vision-sensing companies
Vision systems
($17M)
LIDAR Sensors
($150M)
Laser sensors
($9M)
XGene
Binocular tech
($10M)
NOTABLE DEALS

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Health had a robust end to the year, powered by deals for
connected monitoring and tracking products
Asthma trackers
($21.5M)
Heart rate
monitoring watches
($15M)
Infant health
monitoring
($15M)
Fitness tracker
($12M)
Sleep tracker
($10.5M)
Fertility tracker
($9.7M)
NOTABLE DEALS

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In Drones, hardware deals fell sharply again in the face of
Chinese-driven commoditization

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And as hardware deals decline, new funding activity is moving
up the Drone stack to areas such as…
INFRASTRUCTURE
AND INTELLIGENCE
DATA AND FLEET
MANAGEMENT

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In Industrial/Enterprise IoT, companies focused on connecting
and monitoring things were the number one deal subcategory
$70M
$16M
$3.6M
$13.7M
$6.7M
IOT PLATFORM ANALYTICS SUPPLY CHAIN
MANUFACTURING
MONITORING
ENERGY
MONITORING

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IoT Security still urgently needs more entrepreneurs
In our report last year, we were
surprised by the very small number
of deals for IoT-specific security
startups given the explosion in the
number of connected things.
In the last few months of 2016, we
found 155 new General Security
deals but only 2 new IoT-focused
Security deals.

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Looking ahead to 2017’s IoT Startup State of The Union
It's too early to talk in depth about our next annual update.
But there will be no shortage of significant developments like
this one to report on…
See you in October!

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