- 26,792 startups are relying on IoT as one of their main technologies to launch new products and services and support platform-based business models according to Crunchbase.
- 78.4% of IoT startups Crunchbase tracks have had two funding rounds or less with seed, angel and early-stage rounds being the most common.
- IoT startup funding reached $16.7B in Q4, 2018, with last years’ funding levels 94% over 2017 according to Venture Scanner.
- By 2020, 50% of IoT spending will be driven by discrete manufacturing, transportation and logistics, and utilities
The most successful IoT startups selling into enterprises excel at orchestrating analytics, Artificial Intelligence (AI), and real-time monitoring to deliver exceptional customer experiences. As a group, these top 25 IoT startups are showing early potential at enabling profitable new business models, revitalizing industries that have experienced single single-digit growth recently. Each of these startups is taking a unique approach to solving some of the enterprises’ most challenging problems, and in so doing creating valuable new patents that further fuel IoT adoption and growth.
The top 25 startups are concentrating on how to make IoT a growth catalyst for enterprises by designing in AI integration at the platform level. McKinsey found that 27% of AI early adopters are more likely to report using AI to grow their market than companies only experimenting with or partially adopting AI. 52% are more likely to report using it to increase their market share. These and many other survey results are from McKinsey Global Institute’s Artificial Intelligence: The Next Digital Frontier? (PDF, 80 pp., no opt-in).
Top 25 IoT Startups to Watch In 2019
February 3, 2019