A report providing an overview of the Internet of Things (IoT) startup landscape. Includes a sector overview, graphical trends with insights, and recent funding/exit events. Contact info@venturescanner.com or visit www.venturescanner.com to learn more!

1. Q3 Startup Market Trends and Insights
INTERNET OF THINGS
August 2017

2. Internet of things (IoT) report outline
2
This report provides an overview of the IoT sector and is broken down into three
sections
SectorDescription
High-level sector metrics,
innovation quadrant, and
category definitions
Trends& Insights
Infographics and data points
for the internet of things
sector
QuarterlyActivity
Major funding and exit
events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup
database and research platform

3. Sector Description
3

4. 4
IoT startups are creating new businesses in 20 categories
The full Venture Scanner market report
and database tracks 1,983 companies
with $37B in funding
INTERNET
OF THINGS
The graphic above shows a random sampling of companiesin each category, data cumulativeas of August 2017
Agriculture Automotive DronesandRobotics Enterprise
CityandBuildings EducationandToys Fitness HealthCare
HardwarePlatforms SoftwarePlatforms
Home Industrial Lifestyle Retail
Security SmartWatches TagsandJewelry UtilitiesandEnergy
Components UserInterface

5. 5
Innovation quadrant for IoT
This quadrant shows a relative segmentationof the categories with respect to oneanother, data cumulativeas of August 2017
AverageFunding
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
AverageAge
Tags
Software
Platforms
Fitness
Enterprise
Automotive
User Interface
Hardware
Platforms
Industrial
Components
Agriculture
Utilities
City & Building
Security
Retail
Home
Drones
Lifestyle
Education
Smart
Watches
Healthcare

6. IoT startups play in many different categories (1 of 3)
6Category stats cumulativeas of Augusts 2017
IoT Agriculture
95 Startups, $2.1B Total Funding
Companies that create connected devices to enhance the
agricultural and farming industries, such as livestock
tracking software and smart irrigation
IoT City and Buildings
94 Startups, $1.9B Total Funding
Companies that facilitate smart cities or manage the
infrastructure of buildings, such as smart building
controls and parking space locators
IoT Dronesand Robotics
235 Startups, $4B Total Funding
Companies that create unmanned devices that are
controlled programmatically or remotely, such as aerial
cameras and ocean data collection robots
IoT Enterprise
60 Startups, $3.4B Total Funding
Companies that enhance the productivity of enterprises,
such as business metric intelligence platforms, and smart
glasses for work
IoT Automotive
85 Startups, $3.3B Total Funding
Companies that enable M2M communication in the
automotive industry, such as auto health sensors and
drivinghabit review software
IoT Components
94 Startups, $2.3B Total Funding
Companies that manufacture the internal technologies of
IoT hardware systems, such as IoT circuit boards and
semiconductors
IoT Educationand Toys
56 Startups, $575M Total Funding
Companies that facilitate the education process, such as
app-connected toys, programmable bracelets, and
computer building kits
IoT Fitness
164 Startups, $5.5B Total Funding
Companies that that track fitness and exercise metrics,
such as eating trackers, exercise tracking wristbands, and
smartphone-controlled shoes

7. IoT startups play in many different categories (2 of 3)
7Category stats cumulativeas of Augusts 2017
IoT HardwarePlatforms
96 Startups, $2.7B Total Funding
Companies that provide infrastructural support for
connected devices, such as IoT routers, modems, and
device controllers
IoT Home
301 Startups, $4.4B Total Funding
Companies that create devices focused on the residential
real estate segment, such as home security, home
automation, and energy management
IoT Lifestyleand Entertainment
225 Startups, $2.5B Total Funding
Companies that enhance the overall lifestyle of the user,
such as connected bikes, outdoor gaming systems, and
smart mugs
IoT Security
57 Startups, $1.2B Total Funding
Companies that enable IoT privacy and encryption, such
as IoT vulnerability detection, industrial IoT security, and
IoT data erasure
IoT HealthCare
237 Startups, $3.2B Total Funding
Companies that track health metrics or help improve
health and well-being, such as breathing mobile games,
sleep trackers, and pain relief wearables
IoT Industrial
84 Startups, $1.3B Total Funding
Companies that enhance the productivity of industrial
enterprises, such as data analysis, supply chain
management, and factory robots
IoT Retail
50 Startups, $746M Total Funding
Companies that help with retail stores' operations, such as
store beacon solutions, mobile payment solutions, and
smart barcode scanners
IoT SmartWatches
46 Startups, $412M Total Funding
Companies that create connected watches, such as
motion recognition watches, parental control watches,
and voice notification watches

8. IoT startups play in many different categories (3 of 3)
8Category stats cumulativeas of Augusts 2017
IoT SoftwarePlatforms
244 Startups, $5.1B Total Funding
Companies that build software systems that provide
support for IoT technology, such as wireless
communications and data analytics platforms
IoT UserInterface
94 Startups, $2.9B Total Funding
Companies that offer new ways to control other devices,
such as virtual reality systems and motion-controlled
interfaces
IoT Tagsand Jewelry
83 Startups, $273M Total Funding
Companies that create products that can be tracked in the
real world so they are not lost, such as smart keychains,
smart bike tags, and mini GPS devices
IoT Utilitiesand Energy
52 Startups, $2B Total Funding
Companies that measure and manage energy and utility
usage, such as energy usage monitors, smart sprinklers,
and oilfield data management solutions

9. Sector Trends & Insights
9

10. 10
Investing into the sector is occurring across a variety of categories
The Software Platforms category accounts for 10%of venturefunding and 10%of
totalcompanies in the internet of things sector
Venture Investing in IoT
Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativethrough August 2017
-
50
100
150
200
250
300
350
0
1
2
3
4
5
6
CompanyCount
TotalFunding($B)
VC Funding Count

11. 11
VC funding into IoT has grown in recent years
Overall IoTVC fundinggrew ata CAGR of 34% from 2011-2016, and 2017 is
currently at 94% of 2016 funding
IoT Funding Over Time
Data cumulativethrough August 2017
0
1
2
3
4
5
6
7
8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)

12. 12
IoT funding amounts are focused on mid-stage events
IoT Funding Amount By Round
SeriesC financings accounted for 32% of total 2016 IoT VC funding
Graphs shows only the funding rounds listed therein, data cumulativethrough August 2017
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FundingAmount($B)
Late Stage Series D Series C Series B Series A Seed

13. 13
IoT startups founded in 2012 lead in VC funding
Startups founded in 2012 account for 15% of the sectorfunding over the last decade, and
include companies like Peloton, Mobvoi, and Kymeta
IoT Funding By Vintage Year
Data cumulativethrough August 2017
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)
Year Founded

14. 14
IoT startups are a global phenomenon
IoT Startup Count by Country
Data cumulativethrough August 2017
12000
Companies

15. 15
A variety of top investors are making bets into IoT
Selected Investor Activity in IoT
The above count represents a subset of overall investor activity, data cumulativethrough August 2017
0
10
20
30
40
50
60
70
80
90
100
NumberofInvestments
Number of Investments Number of Companies Backed

16. 16
Exits within the IoT space have been dominated by acquisitions
Exit events within the IoT sector grew by 358% from 2011 to 2016, and 2017 is
currently at 60% of the 2016 total
IoT M&A and IPO Events By Year
Data cumulativethrough August 2017
0
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NumberofExits
Public Acquired

17. Quarterly Notable Events
17

18. 18
Recent IoT funding statistics
There have been 130 IoT funding events from April 2017 through June 2017
Recent IoT Funding Round Counts
Graph shows only the funding types listed therein
0
5
10
15
20
25
30
35
Seed Series A Series B Series C Series D Series E Late Stage
FundingEventCount

19. 19
Recent IoT funding events
Notable Recent IoT Funding Events
Company FundingType Amount Date
Series E $325,000,000 May 24, 2017
Series B $300,000,000 June 7, 2017
Series G $200,000,000 June 27, 2017
Series D $180,000,000 April 6, 2017
Series D $100,000,000 June 20, 2017
IoT startups raised $2.7 billion from April 2017 through June 2017

20. 20
Recent IoT exit events
Notable Recent IoT Exit Events
Company Acquirer Amount Date
$115,000,000 April 27, 2017
Unknown June 26, 2017
Unknown June 9, 2017
Unknown June 8, 2017
Unknown May 9, 2017
There have been 13 IoT exits from April through June 2017, all
of which have been acquisitions

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21

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