From August to Canary to Simplisafe, a host of home automation startups are unbundling $81B conglomerate Honeywell in the home.
The promise of the fully connected smart home is arriving fast driven by a growing number of ‘smart home’ startups – companies offering services for your home ranging from home security, temperature management and lighting controls. These smart home companies are a unique combination of big data, hardware design and internet and mobile software. Many are also considered Internet of Things companies.
One way to think about the rise of smart home startups attacking different verticals is the ‘unbundling’ of one of the largest players in home consumer products, Honeywell (NYSE: HON, Mkt Cap: $81.2B). Honeywell’s established product line for the home spans from thermostats to door chimes to fans & heaters.
As tech invades home solutions, Honeywell’s product portfolio is getting attacked by a number of startups. The graphic below shows the home product section of Honeywell’s own website and the startups attacking it ranging from home monitoring and security firms including Canary, Simplisafe and Leeo, smart thermostats like Netatmo and Ecobee and smart locks including August, Lockitron and Ring. Click the graphic to expand.
Venture investors are betting that startups can successfully take on titans in the home including Philips and Honeywell by attacking them at a product/service level. According to CB Insights data, smart home startups took $454M in investor funding in 2014, an increase of 57% on a year-over-year basis. Among the largest deals in the space over the past six months include a $38M Series B from Bessemer Venture Partners, Comcast Ventures and Qualcomm Ventures to August and a $31.8M Series B to connected home software platform Zonoff from investors including Grotech Ventures and Valhalla Partners.
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This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
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