In a sign of growing investor interest across the IoT ecosystem, financing activity to the IoT market grew in each successive quarter of 2013 to hit an eight-quarter high in Q4 2013.
2013 saw the Internet of Things capture the imagination – and financing dollars – of investors to the tune of $1.1B across 153 deals. And in a sign of growing investor interest across the IoT ecosystem, financing transactions to the IoT market grew in each successive quarter of 2013 to hit an eight-quarter high in Q4 2013.
The host of emerging private companies in the Internet of Things market tracked in the CB Insights database covers a diverse range of connected technologies ranging from the quantified self and healthcare sensor technologies to energy management and home automation. On a year-over-year basis, IoT deals grew 11% last year. After stripping out a mega debt round to now Blackstone-owned home automation firm Vivint in Q1 2012, we see that funding activity saw notable YoY growth of 49%.
Early-Stage Deals Dominate IoT Financing Activity
Over the past two years, 64% of deals in the IoT market occurred at the seed or Series A stages. As investors warm up to new sensor and internet-enabled hardware firms, Series A deal activity saw a YoY rise of 52% last year. The spectrum of IoT companies investors are backing at the early-stage span a range of functions and use cases. Several startups that raised early-stage funding (Seed/Series A) in 2013 are highlighted below.
- SmartThings -Smart home sensor technologies backed by Greylock Partners and Highland Capital Partners
- The Orange Chef -Sensor-enabled kitchenware backed by investors Google Ventures, SparkLabs Global Ventures and Bertelsmann Digital Media Investments
- August – Smart lock and mobile platform backed by investors including SoftTech VC, Cowboy Ventures and Maveron
- Lark Technologies -Wearable alarm clock and sleep tracker backed by investors including CrunchFund, Fenox VC and Asset Management Ventures
- SoundHawk – Internet-enabled wearable hearing devices backed by True Ventures
- Netatmo -Air quality sensors and personal weather station backed by Iris Capital
Silicon Valley takes 1/4 of IoT deals
Geographically, Silicon Valley-based IoT companies have taken just over 1/4 of all deals since 2012 and saw substantial deal growth on a YoY basis. Just over 1/5 of deals went to NY and Mass-based companies.
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.
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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