Internet-connected locks, display objects & kitchen scales – all are among the growing amount of hardware and software technologies backed by venture capital investors in the Internet of Things ecosystem.
And of the investors actively funding IoT companies, corporate venture groups are perhaps the most bullish on the promise and future of IoT. Specifically, three corporate VC investors lead the way in the IoT market – Intel Capital, Qualcomm Ventures and Cisco Investments.
Support for the IoT sector by the three investors hasn’t been hard to notice. Cisco Investments recently announced plans to invest an additional $150M over the next two to three years in tech markets including IoT and connected mobility in addition to new investments in IoT software firms Ayla Networks and Evrything.
Using the Business Social Graph, we wanted to visualize how quickly the web of IoT investments of the three corporate venture groups has expanded in just the past couple years. The Business Social Graph below shows IoT-related investments of Intel Capital, Qualcomm and Cisco between 2008 and 2010. Select investments over the period included wireless health monitor Sotera Wireless and connected home company iControl Networks. (Note: total funding to the IoT space can be seen here)
But as the Business Social Graph time-series visualization shows below, the three corporate venture arms have significantly grown their investments in the IoT since then. By just increasing the timeline on the Business Social Graph, we clearly see the uptick. From wearables like Fitbit, Thalmic Labs and Basis (Qualcomm Ventures & Intel Capital) to software underpinnings in IoT like Ayla, Evrything and Phunware (Cisco Investments), IoT investments by the three CVCs have expanded into a number of sub-industries within the broader IoT market.
The rapid growth of IoT investment is in line with the corporate strategies of Intel, Cisco and Qualcomm. The Business Social Graph value is that it aids analysts in discerning this strategy early and with data based on where companies invest, what they acquire and who they partner with.
A cross-section of public mentions by each firm highlights their intent to make IoT a key part of their respective investment or corporate strategies.
- “Innovation in smart devices and the Internet of Things is heralding the evolution of a new ecosystem for computing technologies. We are investing to accelerate this exciting new ecosystem, extending from new smart devices and sensors to networks to base stations to servers to big data analytics.” – Arvind Sodhani, Intel Capital, April 2014
- “The Internet of Things is a reality today and will only continue to create unprecedented opportunities. Empowering and preparing the next generation workforce to take part in this global opportunity is a critical piece of fueling IoT innovation.” – Wim Elfrink, Cisco Chief Globalization Officer, October 2013
- “Imagine getting into your car and telling your car to stream information from your phone to your car. All these kinds of things are possible under the notion of a digital sixth sense. And a number of technologies will make this possible. And it’s all part of this Internet not of things, but of everything.” – Paul Jacobs, Qualcomm Executive Chairman, Feb. 2013
You really should check out the Business Social Graph. And for more Internet of Things financing and exit data and interactive rankings, check out the CB Insights Venture Capital Database. Sign up for free below. A full list of investor-backed IoT companies can also be purchased in the Data Store.