Venture Scanner Sector Maps (Part 2 of 2)

Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.

Last week, we kicked off our sector map update with Part 1. You can read that blog post here.

This post is the second of a two-part series. Below you will find sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality.

Artificial Intelligence: 13 categories, 2161 companies, $32B in funding

Artificial Intelligence Sector Map
Artificial Intelligence Sector Map

Internet of Things: 20 categories, 2151 companies, $52B in funding

Internet of Things Sector Map
Internet of Things Sector Map

Marketing Technology: 15 categories, 1771 companies, $33B in funding

Marketing Technology Sector Map
Marketing Technology Sector Map

Real Estate Technology: 12 categories, 1649 companies, $48B in funding

Real Estate Technology Sector Map
Real Estate Technology Sector Map

Retail Technology: 21 categories, 1746 companies, $59B in funding

Retail Technology Sector Map
Retail Technology Sector Map

Security Technology: 14 categories, 1063 companies, $25B in funding

Security Technology Sector Map
Security Technology Sector Map

Transportation Technology: 17 categories, 1238 companies, $117B in funding

Transportation Technology Sector Map
Transportation Technology Sector Map

Virtual Reality: 13 categories, 750 companies, $10B in funding

Virtual Reality Sector Map
Virtual Reality Sector Map

To learn more about our complete report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Internet of Things Investments Becoming More Substantial

The internet of things (IoT) sector has seen vibrant funding and exit activity over the past few years. How have its funding trends evolved over time? On our internet of things research platform, we have analyzed the data through 2017 and can conclude that the investments in IoT have become more substantial over time.

We have come to this conclusion from the following three takeaways:

  • Funding amounts are seeing robust growth at the annual level
  • Funding events are seeing a decline in recent years
  • Average funding per deal amounts are growing

We will illustrate these takeaways with a series of graphics to show the trend of IoT investments over time.

IoT Funding Amounts Seeing Robust Growth Annually

We will start off by examining the IoT funding trends over the years stacked by quarters.

IoT Funding by Quarter - Stacked
IoT Funding by Quarter – Stacked

This graph illustrates that IoT funding saw explosive growth at the annual level. Specifically, the CAGR in funding amounts from 2012 to 2017 is 45%. In addition, the funding in 2017 was 166% of that in 2016.

We have seen that IoT funding is showing strong growth, but what about the total number of deals?

IoT Funding Events Declining in Recent Years

The following graph shows us the annual number of IoT startup funding deals, stacked by quarters.

IoT Funding Count by Quarter - Stacked
IoT Funding Count by Quarter – Stacked

The above graphic illustrates that the number of IoT funding events saw a healthy upward trend till 2015 and declined thereafter. In fact, the CAGR in funding events from 2012 to 2017 is only 15% due to the quick rise and subsequent fall. In addition, the number of funding events in 2017 was 76% of that in 2016.

We have seen that IoT funding amounts are increasing significantly but its funding events are seeing a decline. Let’s see if the trend in average deal size reinforces this.

Average IoT Funding Deal Size Demonstrating Overall Growth

The following graph shows the average funding per IoT deal over different quarters from 2011 to 2017, as well as the trendline.

IoT Average Funding Event Size Over Time
IoT Average Funding Event Size Over Time

This graphic does indicate that the average IoT funding per deal has experienced steady growth over the past few years. The trendline shows that from Q3 2011 to Q4 2017 the average deal size has grown by approximately 500%. This stable upward trend in average deal size demonstrates that the investments in the internet of things have indeed become weightier over time.

Conclusion: Investments in the Internet of Things Are Becoming More Substantial

In summary, we have seen from the above graphics that IoT funding amounts experienced strong growth at the annual level, yet its event counts have seen a decline in recent years. Moreover, the average funding per deal has been growing consistently over time. These takeaways lead us to conclude that the investment rounds in IoT have become more substantial–in that the bets have become fewer in frequency but larger in amount. It’ll be interesting to see if this trend continues in 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete internet of things research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Internet of Things (IoT) Startup Highlights  – Q4 2017

Here is our Q4 2017 summary report on the Internet of Things (IoT) startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete Internet of Things (IoT) report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Internet of Things Sector Overview – Q4 2017

The Internet of Things sector (IoT) continues to get a lot of buzz in the technology industry. Connected devices have improved our professional and personal lives in every aspect from industrial operations to medical procedures to home security. Yet what are the different components of IoT and how do they make up this startup ecosystem? On our IoT research platform, we have classified the companies in the sector into functional categories. This blog post examines these categories and how they compare with one another through a series of graphics.

IoT Home Is the Largest Internet of Things Category

Let’s start off by looking at the Logo Map for the Internet of Things sector. As of January 2018, we have classified 2,130 IoT startups into 20 categories which collectively raised $50 billion in funding. The Logo Map highlights the number of companies in each category and a random sampling of these companies.

Internet of Things Logo Map
Internet of Things Logo Map

We can see from the Logo Map above that IoT Home is the largest Internet of Things category with 331 companies. This category is comprised of companies that provide connected devices focused on the residential real estate segment. Some example companies in this category include Nest Labs, WigWag, SmartThings, and LIFX.

We have seen what the different categories in IoT are and how many companies are within each category. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

The Established and the Pioneers Comprise the Majority of IoT Categories

Our Innovation Quadrant for the IoT sector divides the categories within the sector into four different quadrants according to their average funding and average age. The Heavyweights are the categories with companies that have reached maturity with significant financing. The Established are those that have reached maturity with less financing. The Disruptors are less mature but with significant financing. The Pioneers are less mature and with earlier stages of financing.

Internet of Things Innovation Quadrant
Internet of Things Innovation Quadrant

We can see from our Innovation Quadrant above that most of the IoT categories belong in either the Established quadrant or the Pioneers quadrant, with 7 categories in each. The IoT Fitness, IoT User Interface, IoT Enterprise, and IoT Automotive categories have raised more funding and thus made their way into the Disruptors quadrant. The IoT Components and IoT Hardware Platforms categories are in the Heavyweights quadrant for having reached maturity with significant financing.

We’ve now seen how the Internet of Things sector is categorized and the relative stages of innovation for those categories. How do these categories stack up against one another in a holistic view? Let’s look at the Total Funding and Company Count Graph.

IoT Software Platforms Is the Most Funded IoT Category

The graph below shows the total amount of venture funding and company count in each IoT category.

Internet of Things Total Funding and Company Count by Category
Internet of Things Total Funding and Company Count by Category

We can see from the graph above that while IoT Home has the most companies in the Internet of Things sector with 331 companies, it’s the IoT Software Platforms category that leads the sector in total funding with $6.3 billion. The IoT Software Platforms category is comprised of companies that build backend software systems that provide infrastructural support for IoT technology. Some example companies in this category include DADO Labs, CloudPlugs, Buddy, and C3 IoT.

Conclusion: Most Internet of Things Categories Have Large Growth Potential

The graphics above indicate that most of the IoT categories are still in their infancy in terms of their funding and maturity. In addition, the sector is bustling with a good number of IoT Home companies. Yet the IoT Software Platforms companies are receiving more venture funding than those in all the other categories. It will be interesting to see if this trend continues in 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Internet of Things report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Internet of Things Exits by Category and by Year – Q3 2017

The following graphs highlight the exit activity in the Internet of Things sector. The graphics include data through August 2017.

Internet of Things Exits by Category
Internet of Things Exits by Category

The above graph summarizes the number of exits (acquisitions and IPOs) in each Internet of Things category. The IoT Software Platforms category leads the sector with 8 IPOs and 39 acquisitions. The IoT Home category follows behind with 4 IPOs and 25 acquisitions.

Internet of Things Exits by Year
Internet of Things Exits by Year

The above graph summarizes the number of exits (acquisitions and IPOs) in Internet of Things by year. 2016 currently leads the sector with 2 IPOs and 53 acquisitions, with 2015 following behind with 7 IPOs and 31 acquisitions.

We are currently tracking 2067 IoT companies in 20 categories across 53 countries, with a total of $42.5 Billion in funding. Click here to learn more about the full IoT market report.

Venture Investing in the Internet of Things – Q3 2017

The following graphs highlight venture investing trends into the Internet of Things (IoT) sector. The graphics include data through August 2017.

Internet of Things Venture Investing by Category
Internet of Things Venture Investing by Category

The above graph compares the total venture funding in each IoT category to the number of companies in the category. The IoT Software category leads in funding at around $5B. IoT Home leads in company count at just over 300 companies.

Internet of Things Average Funding by Category
Internet of Things Average Funding by Category

The above analysis summarizes the average company funding in each IoT category. The IoT Enterprise category leads the sector with around $76M in average funding per company, followed by the IoT Automotive category with around $67M in average funding per company.

We are currently tracking 2062 IoT companies in 20 categories across 53 countries, with a total of $42.5 Billion in funding. Click here to learn more about the full Internet of Things market report.

Age by Category in Internet of Things – Q3 2017

The following graph shows average and median age in the Internet of Things sector. The graphic includes data through August 2017.

Internet of Things Age by Category
Internet of Things Age by Category

The above graph summarizes the average age and median age of companies in each Internet of Things (IoT) category. The IoT Industrial category has the highest average age at around 12.1 years, followed by the IoT Hardware Platforms category with an average age of around 11.8 years. IoT Components, IoT Utilities and Energy, and IoT City and Buildings categories all have the highest median age at around 8.5 years. On the other hand, IoT Tags and Jewelry category is the youngest Internet of Things category with an average age of 5 years and a median age of 4.5 years.

We are currently tracking 2055 IoT companies in 20 categories across 53 countries, with a total of $42.1 Billion in funding. Click here to learn more about the full IoT market report.