A report providing an overview of the Internet of Things (IoT) startup landscape, graphical trends and insights, and recent funding and exit events. Contact info@venturescanner.com to learn more!
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Venture Scanner IoT Report Q1 2017
1. Venture Scanner is your analyst and technology-powered startup research firm
April 2017
Internet of Things (IoT)
Startup Market Trends and Insights
2. Internet of Things (IoT) report outline
2
This report provides an overview of the 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 for 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 research platform
4. IoT startups are creating new businesses in 20 categories
4
Internet of
Things
Learn about our full 1808 company
report with $32B in funding
The graphic above shows a sampling of companies in each category, stats as of April 2017
Hardware Platforms Software PlatformsAgriculture Automotive
City and Buildings
Drones and Robotics
Education and Toys
Enterprise
Fitness Health Care
Components User Interface
Security Smart Watches Tags and Jewelry Utilities and Energy
Home Industrial Lifestyle Retail
5. 5
Innovation quadrant for the internet of things
AVERAGE FUNDING ($M)
AVERAGEAGE(YEARS)
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
This quadrant shows a relative segmentation of the categories with respect to one another, data as of April 2017
IoT Enterprise
Smart Watch
IoT Auto
IoT Tags
IoT Hardware
IoT User
Interface
IoT Fitness
IoT Industrial
IoT Components
IoT UtilitiesIoT Software
IoT City
IoT Security
IoT Agriculture
IoT Robotics
IoT Home
IoT Health
Entertainment
IoT Retail
IoT Enterprise
6. IoT startups play in many different categories (1 of 3)
6
IoT Agriculture
84 Startups, $1.6B Total Funding
Companies that create connected devices to enhance
the agricultural and farming industries, such as
livestock tracking software and smart irrigation
Category stats as of April 2017
IoT City and Buildings
87 Startups, $1.6B Total Funding
Companies that facilitate smart cities or manage the
infrastructure of buildings, such as smart building
controls and parking space locators
IoT Drones and Robotics
187 Startups, $3B Total Funding
Companies that create unmanned devices that are
controlled programmatically or remotely, such as
aerial cameras and ocean data collection robots
IoT Enterprise
55 Startups, $3B Total Funding
Companies that enhance the productivity of
enterprises, such as business metric intelligence
platforms, and smart glasses for work
IoT Automotive
79 Startups, $3.2B Total Funding
Companies that enable M2M communication in the
automotive industry, such as auto health sensors
and driving habit review software
IoT Components
88 Startups, $1.8B Total Funding
Companies that manufacture the internal
technologies of IoT hardware systems, such as IoT
circuit boards and semiconductors
IoT Education and Toys
55 Startups, $571M Total Funding
Companies that facilitate the education process,
such as app-connected toys, programmable
bracelets, and computer building kits
IoT Fitness
158 Startups, $4B Total Funding
Companies that that track fitness and exercise
metrics, such as eating trackers, exercise tracking
wristbands, and smartphone-controlled shoes
7. IoT startups play in many different categories (2 of 3)
7
IoT Hardware Platforms
84 Startups, $2.5B Total Funding
Companies that provide infrastructural support for
connected devices, such as IoT routers, modems, and
device controllers
Category stats as of April 2017
IoT Home
289 Startups, $3.9B Total Funding
Companies that create devices focused on the
residential real estate segment, such as home
security, home automation, and energy management
IoT Lifestyle and Entertainment
207 Startups, $1.9B Total Funding
Companies that enhance the overall lifestyle of the
user, such as connected bikes, outdoor gaming
systems, and smart mugs
IoT Security
52 Startups, $984M Total Funding
Companies that enable IoT privacy and encryption,
such as IoT vulnerability detection, industrial IoT
security, and IoT data erasure
IoT Health Care
214 Startups, $2.4B Total Funding
Companies that track health metrics or help improve
health and well-being, such as breathing mobile
games, sleep trackers, and pain relief wearables
IoT Industrial
65 Startups, $877M Total Funding
Companies that enhance the productivity of
industrial enterprises, such as data analysis, supply
chain management, and factory robots
IoT Retail
47 Startups, $475M Total Funding
Companies that help with retail stores' operations,
such as store beacon solutions, mobile payment
solutions, and smart barcode scanners
IoT Smart Watches
44 Startups, $297M Total Funding
Companies that create connected watches, such as
motion recognition watches, parental control
watches, and voice notification watches
8. IoT startups play in many different categories (3 of 3)
8
IoT Software Platforms
228 Startups, $4.6B Total Funding
Companies that build software systems that provide
support for IoT technology, such as wireless
communications and data analytics platforms
Category stats as of April 2017
IoT User Interface
92 Startups, $2.6B Total Funding
Companies that offer new ways to control other
devices, such as virtual reality systems and motion-
controlled interfaces
IoT Tags and Jewelry
79 Startups, $175M Total Funding
Companies that create tags and smart jewelry that
enable one to track items and products such as smart
keychains, smart bike tags, and mini GPS devices
IoT Utilities and Energy
47 Startups, $2B Total Funding
Companies that measure and manage energy and
utilities usage, such as energy usage monitors, smart
sprinklers, and oilfield data management solutions
10. 10
Investing into IoT happens in a variety of categories
The IoT Software category accounts for 11% of venture funding and 10% of
total companies in the IoT sector
Venture Investing in IoT
Companies are categorized by function, and therefore can exist in multiple categories. Data as of April 2017
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50
100
150
200
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350
0.0
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CompanyCount
TotalFunding($B)
VC Funding Count
11. 11
VC funding into IoT has grown significantly in recent years
Overall IoT VC funding grew at a CAGR of 33% from 2011-2016, and
2017 is on track to be the best funded year ever
IoT Funding Over Time
Data as of April 2017
0
1
2
3
4
5
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7
8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)
12. 12
IoT startups are continuing to mature
IoT Funding Amount By Round
2016 funding amounts were mostly Series A to Series C rounds, indicating IoT
startups are showing enough traction to receive follow-on investments
Graphs shows only the funding rounds listed therein, data as of April 2017
0.0
0.5
1.0
1.5
2.0
2.5
3.0
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FundingAmount($B)
Late Stage Series D Series C Series B Series A Seed
13. 13
IoT startups founded in 2011 lead in VC funding
Startups founded in 2011 account for 18% of the sector funding over the last
decade, and include companies like Magic Leap, MetroMile, and Gogoro
IoT Funding By Vintage Year
Data as of April 2017
0.0
0.5
1.0
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)
Year Founded
14. 14
IoT startups are a global phenomenon
IoT Startup Count by Country
0 1115
Companies
Data as of April 2017
15. 15
Top VC investors are making bets into the IoT sector
Selected Investor Activity in IoT
The above count represents a subset of overall investor activity, data as of April 2017
0
10
20
30
40
50
60
70
80
90
NumberofInvestments
Number of Investments Number of Companies Backed
16. 16
IoT exit activity is on an upward trend
Exit events within the IoT sector grew by 1667% from 2011 to 2016
IoT M&A and IPO Events By Year
Data as of April 2017
0
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NumberofExits
Public Acquired
18. 18
Recent IoT funding statistics
There have been 120 IoT funding events since Jan 2017
Recent IoT Funding Round Counts
Graph shows only the funding types listed therein, data as of April 2017
0
5
10
15
20
25
30
Seed Series A Series B Series C Series D Late Stage
FundingEventCount
19. 19
Recent IoT funding events
Notable Recent IoT Funding Events
Company Funding Type Amount Date
Undisclosed $1,000,000,000 Feb 13, 2017
Series D $180,000,000 Apr 6, 2017
Series D $109,000,000 Jan 25, 2017
Series A $100,000,000 Feb 23, 2017
Series G $100,000,000 Feb 7, 2017
Internet of Things startups raised $2.6 billion since January 2017
Data as of April 2017
20. 20
Notable recent IoT exit events
Notable Recent IoT Acquisitions
There have been 16 exit events since January 2017,
all of which have been acquisitions
Data as of April 2017
Company Acquirer Amount Date
$15,300,000,000 Mar 13, 2017
$800,000,000 Feb 23, 2017
$250,000,000 Feb 2, 2017
$30,000,000 Mar 29, 2017
$8,000,000 Feb 1, 2017
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