IoT Investment Funding
Overview of Internet of Things corporate and venture capital activity in our Internet of Things (IoT) investment database...
The IoT is generating significant interest from both emerging and traditional fundraising communities. Below we take a look at some of the notable investment activity in the space over the last several years.
Looking to invest your own money in the IoT? A list of publicly traded companies focused on the IoT can be found here.
Corporate Venture Funds
Traditionally larger companies have shown their interest in innovative start-ups through simply acquiring them. Today global corporations are teaming up or going head to head with traditional tech VC's to back the companies at different stages of their growth. Able to use their bank rolls and extensive partner networks to bring ideas to reality for similar types of companies while achieving their same strategic goals of helping their internal departments innovative and distributing their R&D costs.
Here are five CVC funds targeting the IoT to keep your eye on:
Cisco’s venture capital arm has been investing actively since 1993. Current areas of focus are what Cisco calls “disruptive ideas that align with Cisco’s business today,” including cloud, data virtualization, software-as-a-service, and the “Internet of Everything,” Cisco’s term for the Internet of Things.
● Ayla Networks: Offers an end-to-end platform-as-a-service (PaaS) for OEMs that connects devices to the cloud, with data virtualization that gives insight into user behavior.
● Evrythng: Provides software-as-a-service (SaaS) for making products smart by connecting them to the Internet, enabling real-time tracking analytics to enhance supply chain operations and user experience.
● iControl: IP-enabled home security and automation PaaS that connects devices in the home to cloud services and applications.
Since 1991, Intel Capital has invested $11 billion collectively in more than 1,300 companies, 41 percent of which have gone public, been acquired, or merged. Intel Capital is currently focusing on consumer devices, open-source services, and -- you guessed it -- the IoT.
Google opened its venture capital branch in 2009 and has already invested in more than 250 companies in the U.S. and Europe. You surely remember Google’s acquisition of Nest in February, but what you might not know is that it came after a Google Ventures investment in the smart thermostat startup. Look to Google Ventures to predict more of the next big names in the IoT. Areas of focus include consumer, mobile, commerce, health, data and enterprise.
4) GE VenturesCurrent Portfolio: GE Ventures currently invests in and is partnered with 47 companies, the bulk of which are in the energy space.
Backed by GE’s massive global influence, GE Ventures began in Silicon Valley in 2013. The company has invested in more than 60 companies thus far, and plans to commit $150 million a year into other energy, health, software, and advanced manufacturing startups.
Qualcomm Ventures started in 2000 with $500 million to make investments specifically in high technology. The company is committed to the entrepreneurial spirit and seeing companies grow. 85 percent of companies they invest in receive follow-on investment. Qualcomm is now a global investor, with regional and sector-specific funds. Areas of focus include consumer and business software, hardware, cloud, healthcare and semiconductors/components.
The highlights above are just a sampling of the IoT companies in each fund’s portfolio. They’re an important type of fund to watch moving forward as IoT start-ups in every sector vie for investments from the big shots and their reach, and network effects begin to take effect in the IoT product and partner ecosystems.
IoT Investment and R&D Announcements
- zVentures: Razer’s $30 million dollar corporate ventures arm with a segment focus on IoT
- SAP announced $2B Investment fund over five year (9/2016)
- Samsung announced $1.2B IoT R&D spending over 4 years (6/2016)
|10/25/2010||ThingMagic "is a leading developer of radio frequency identification (RFID) technology, with broad experience in applying RFID in a wide range of industrial and consumer applications."||N/A||- Press Release|
|6/28/2011||Palantiri Systems "provides the software that enables intelligent machines to participate in a connected world. Our AlwaysOn™ Product Suite allows machines and production equipment to communicate with each other and the people responsible for their continued operation."||N/A||- Press Release|
|7/19/2011||Pachube "Pachube is a convenient, secure & scalable platform that helps you connect to & build the ‘internet of things’'||$15M||- Press Release|
|12/20/2011||SensorLogic leverages the cloud to deliver M2M as a Service.||N/A||- Press Release|
|12/30/2011||Dust Networks is "a pioneer in the field of wireless sensor networking. Using standards-based network technology, Dust’s broad portfolio includes SmartMesh IP, SmartMesh Industrial/WirelessHART™ and ZigBee."||N/A||- Press Release (PDF)|
|11/1/2012||At Etherios, our mission is to deliver industry leading cloud-based solutions||715,571 stock shares||- Press Release|
|5/21/2012||Ember "is the platform of choice for OEMs developing ZigBee networking into their products."||$72M||- Press Release|
|12/19/2012||Ozmo Devices develops Wi-Fi compatible communication technologies that deliver cost-effective wireless personal area network (WPAN) connectivity for battery-operated devices.||N/A||- Press Release|
|5/1/2013||BodyMedia "The leading on-body monitoring system. Accurate information about your body."||$100M||- Press Coverage|
|8/27/2013||Sensinode is "is a pioneer and world leader in technology and software solutions for the Internet of Things"||N/A||- Press Coverage|
|9/4/2013||ILS Technology is a "leading provider of ready-to-use, off-the-shelf cloud platform to connect enterprise IT systems to m2m-connected devices and machines for businesses-critical use."||$8.5M||- Press Release|
|12/30/2013||ThingWorx "provides the first software application platform designed for today’s connected world."||$112M||- Press Release|
|1/13/2014||Nest reinvents unloved but important home products, like the thermostat and the smoke alarm||$3.2B||- Press Release|
|1/21/2014||Kovio technology is the only industry-supported NFC interface in printed electronics.||$2.7M Cash $1.0M Equity||- Press Release|
|3/4/2014||At Basis we designed our wrist-based health tracker and online personal dashboard to help you easily incorporate healthy habits into your daily routine.||$100-150M||- Press|
|6/20/2014||At Dropcam, we believe you should be able to drop in on anything, be it your child, your pet or your house, from anywhere. .||$555M||- Press Release|
|7/8/2014||NMI is a leading supplier of RF system-on-a-chip solutions for wireless connectivity and broadcast communications markets.||$140M||- Press Release|
|7/8/2014||RivieraWaves offers a unique wireless Intellectual Property (IP) portfolio in the Bluetooth® and Wi-Fi™ areas for integration into ASIC and FPGA.||$19M||- Press Release|
|7/23/2014||Axeda provides "the most advanced cloud-based service and software for managing connected products and machines and implementing innovative Machine-to-Machine (M2M) and Internet of Things (IoT) applications."||$170M||- Press Release|
|8/14/2014||SmartThings "adds intelligence to everyday things in your world, so that your life can be more awesome."||$200M||- Press Release|
|10/15/2014||CSR is a Wireless technology solutions provider for audio, visual, connectivity and location products.||$2.5B||- Press|
|10/24||Revolv unifies your smart home on your smartphone and tablet.||N/A||- Press Release|
|Springboard combines investment capital with an intensive 13 week mentor-led accelerator programme.||- IoT Companies||Annually, Springboard invests in over 30 companies with founder friendly investment terms for between 3-6% equity stake in the business.|
|Bolt "Helping physical product startups get to market"||- Full-time engineering & design staff
- Sufficient seed capital to last the program
- Domestic engagement with Dragon Innovation
- $100k line of credit for electronic components
|HAXLR8R is a venture fund which focuses on entrepreneurs building hardware devices.||- Companies||- Offers seed funding ($25,000), office space as well as mentorship along with the other opportunies for 2-4 person startups to take an idea to a product.|
|Startup Bootcamp "Startupbootcamp is the global accelerator for startups with a mentor and alumni network from more than 30 countries across the world."||- Companies||- Startups receive €15,000 in pre-seed investment, free co-working space and €300,000 worth of deals from ponsors and partners.|
|More IoT focused accelerators.
|The Technology Strategy Board and their IoT Special Interest Group
- Invested £500,000 in preparatory studies to develop strategies for moving towards a converged and open application and services marketplace in the Internet of Things. Summary can be found here (PDF)
- Launched a £4m Internet of Things Ecosystem Demonstrator in 2012. The winners include:
|6/6/2013||Innovation Norway is "the Norwegian Government's most important instrument for innovation and development of Norwegian enterprises and industry."||$1.2M||Thinfilm is "creating printed system products that will include memory, sensing, display and wireless communication-at a cost-per-functionality unmatched by any other electronic technology."|
|9/15/2012||LIFX is a "WiFi enabled, multi-color, energy efficient LED light bulb that you control with your iPhone or Android."||$1.3M||- Kickstarter Page|
|8/23/2012||YOUR WORLD, SMARTER - SmartThings "makes it easy to connect the things in your physical world to the Internet."||$1.2M||- Kickstarter Page|
|1/21/2013||StickNFind- "Bluetooth Powered ultra small Location Stickers"||$931K||- Indiegogo Page|
|- A directory of crowdfunded Internet of Things products can be found here.|
Amazon Alexa Fund - $100 Million
Portfolio includes Rachio, Trackr, Mojio, Scout, Garageio
Samsung to invest $1.2 billion over 4 years for U.S.-based Internet of Things (IoT) R&D and investments via Samsung Strategy and Innovation Center, Global Innovation Center and Samsung Research America - Source (6/2016)
Cisco $150 Million IoT -
Portfolio includes: Ayla, EVRYTHNG,
See complete list here.