VC for IoT
IoT refers to Internet of Things, which is a tag given to the process of connecting previously innate physical objects to the Internet using the latest wireless digital technology. We are currently making preparations for a social and environmental change that will be brought about by cars, personal devices, glasses and watches being interconnected via the Internet to benefit corporations and consumers alike. Cities will become “smart,” and existing public and private infrastructure will become connected and deliver a better experience for everyone. Newly interconnected devices in the home will look after the controls of our air conditioning and heating.
It has been forecasted that the IoT market will be worth $7.1 trillion in 2020. This forecast has basis in the fact that there are already 4.9 billion devices connected by IoT this year, and that is a 30% increase on last year, and IoT is therefore on track to reach 25 billion connected devices by 2020.
All of this means that investment in IoT is exploding, and major players like Google and Apple are setting out to get their market share. Many well-established companies are on a mission to acquire as much as they can in the space, buying up a variety of hardware companies in an attempt to leverage existing portfolios of products, and in the process, they are getting further access into the lives and homes of consumers as part of the development of their IoT strategies.
Venture Capital companies have invested around $1.6 billion to date, and the number of startups has been growing also, from only 13 during 2013, up to 189 during 2014. IoT has been generating interest from both traditional and corporate venture capital firms.
All of this heightened activity has been inspired by the potential presented by IoT to provide extra value to both enterprise and consumers, allowing them to make more optimal decisions based around improvements in efficiency. IoT is currently making an impact on every industry imaginable, from logistics to healthcare, manufacturing to energy and even agriculture.
The impact it is having on enterprises is notable, businesses are now able to achieve a greater level of process efficiency and optimization, by gaining the ability to gather data and generate reports relating to various business systems.