Startups come and go. Most of them fail without ever attracting any attention to their ideas. And only a few of them get a chance to succeed in this crazy race. Internet of Things or IoT startups face double risk. They enter the unoccupied niche and present a completely new solution. How will the market react? Will there be any interest in the innovative product at all? No one can predict this.
The only thing that remains true is – every startup depends on the investments.
IoT startups that are going to change the world
The more innovative the idea, the more investments are needed to implement it. Here are the stories of world’s most successful IoT startups. They managed to attract great investments to bring their business on the top of the branch.
littleBits – $62 million
The successful IoT startup littleBits aimed to give everyone a chance to contribute to IoT technology with developing own devices.
LittleBits are fully programmed small electronic modules. They enable the user to construct his own IoT devices. And he doesn’t necessary need to be a professional engineer.
Different litteBits kits were released to the market. Especially worth mentioning is the Smart Home Kit. The modules of this kit allow to create tailored solutions for smart homes and connect the appliances to the internet. And what is especially pleasant – even a kid could do this.
By the way, littleBits are used in over 2000 schools now. They make children familiar with electronics and IoT technology in the early age and help to inspire the future inventors.
The prices start with $100 for the Starter Kit, which makes it affordable both for institutions and families. Now littleBits includes 70 different modules with millions of combinations possible. So why not to build your own IoT device?
Trying to reinvent the way people interact with electronics, littleBits is the real innovator. And the investors seem to believe in it. The total investments in littleBits exceeded $62 million in five rounds. The first year of financing started in 2011. By this time, 3,5 years of hard work were already behind and the startup could present its product to the public. The most successful was the year 2015. The IoT company managed to raise $46 million in Series B funding led by DFJ Growth.
Jibo – $52 million
Jibo is one of the greatest early stage IoT startups of this year. This company is going to produce the world’s first social robot!
Jibo is the name of the robot. It is supposed to be a perfect assistant and a nice companion every household can benefit with. Jibo can turn on and off the light, order pizza, read books with children, take photos for you and so on.
The idea of this robot was the real sensation. The crowdfunding campaign on IdieGoGo became the most successful technology campaign on this platform. Jibo gathered over $3,7 million from around 7500 backers. The company will also ship the Developer Edition of the product to enable the developers worldwide create their own applications for the first social robot ever!
Crunchbase reports Jibo involved over $54 million in investments. Most recent funding took place in December 2015. It was $16 million investment in series A.
The family robot is expected to reach the market in October 2016. We suppose it is not the end of the successful funding campaign of Jibo and it will attract even more investments.
Ecobee – $51 million
The Canadian IoT startup ecobee produces smart WiFi thermostats, which will help you feel comfortable in your home.
Ecobee’s thermostats connect with smart sensors that can be placed in every room of your home. The IoT technology measures the temperature in the room and adjusts the heating intensity to make you feel comfortable. The smart sensors also recognize whether there is someone in the room or not in order not to heat empty space. All the settings are provided via smartphone app.
The smart thermostats help to reduce heating costs and to increase the comfort in the leaving space. This idea was recognized both by consumers and investors. The most recent round series C in August 2016 ended up with $35 million investment from Amazon Alexa Fund. Founded in 2007, the IoT startup generated in total over $51 million dollars in investments.
Ecobee is also the first thermostat connected with HomeKit by Apple. This cooperation with the world’s leader in technology sector shows huge prospects for Ecobee.
August – $48 million
August is an IoT startup producing another home device enabled for Apple’s HomeKit. This is a smart lock and a doorbell with some new features you’ve always dreamed of. August can replace the physical keys. It automatically locks the door when you go out and unlocks it when you come back. It also allows you to create unique digital keys for every user, track who enters and goes and remotely open the door to your guests. With HomeKit integration you can let Siri unlock or lock the front door for you.
Investors seem to like the idea of the IoT technology enabled lock August. The seed round in March 2013 gathered $2 million. 3 years later the total investments in the IoT company exceeded $48 million.
The biggest success of the IoT startup was Series B in March 2015. This round resulted in $38 million from Bessemer Venture Partners. August decided to invest this money in expanding the retail availability of their product.
Withings – $33 million
Withings is an IoT startup producing connected devices that take care of your health. Among this amazing products are:
- activity and sleep quality trackers;
- wireless blood pressure monitors;
- smart thermometer;
- scales to track your weight and heart health:
- alarm, which wakes you up with gently increasing the lighting and your favorite music.
All the devices are connected to the smartphone app. The app stores your results and gives tips for a healthier lifestyle. Withings is designed to make the health tracking easier and more efficient.
Over $3 million in series A was a nice start for the Internet of Things startup, supported by $30 million in series B.
Withings was later acquired by Nokia for $150 million. With this acquisition Nokia plans to become one of the major player on the digital health market.
APX Labs – $28 million
APX Labs is the IoT company producing unique software for smart glasses and other wearable devices.
Project Skylight is the revolutionary software for smart glasses. It is dedicated for industry and manufacture purposes. The IoT technology glasses connect to the network and augment the reality with the information of different kind. They can capture photos, show video and play sounds.
Skylight smart glasses are a necessary device when it comes to:
- controlling and fixing of industry machines;
- increasing working productivity of the engineers;
- optimizing resources in general.
The IoT startup APX Labs raised for its product Skylight over $28 million. Almost half of that amount was raised during the last round series B in November 2015 – $13 million. Skylight software is already being used in some world leading industry companies. For example Tesla.
Cooperation with such industry giants is a dream of every Internet of Things startup. This fact proves APX Labs’ expertise and bright future for the company.
Automatic – $24 million
The smart driving assistant Automatic is an IoT technology enabled invention that can forever change the way you treat your car. Did you know that your driving style can affect the fuel consumption? Automatic knows this and it will help you to save money with making efficient driving to your habit. It can also connect your car with your smartphone to let you know about everything that is happening to your vehicle. Moreover, in case of any accident, Automatic can alert 911 with the car’s location and save lives.
The IoT startup Automatic already had 3 rounds of investment, two of them attracted the undisclosed amount of funding. The last round series B raised $24 million and it seems like it is only the beginning for Automatic.
People love their cars. The tool which helps them take care of their beloved vehicles will definitely achieve success.
These were 7 IoT startups that raised millions of investments. Some of them are now successful IoT companies, selling their goods all over the world. Some of them make their first steps in the world of IoT technology. But they have one thing in common – the amazing ideas worth investing.
Can your idea attract millions from investors?