IoT Analytics today released the 2021 Internet of Things Startups Report and database, showing that more than 1,200 companies form the pattern of upcoming innovative companies competing for market share in the future Internet of Things world.
The main findings of the study include:
- Active number determined in 2021 Internet of Things (IoT) startups According to the latest IoT Analytics report on this topic, it has grown to more than 1,200.
- Investment in IoT startups After a significant reduction in funding in the second and third quarters of 2020, it has returned to pre-COVID-19 levels.
- The most common offer IoT startups It is IoT software (77% of startups provide), followed by IoT hardware (45%), IoT connectivity (17%) and IoT services (14%).
The IoT startup landscape in 2021
Although there are new startups pouring into the Internet of Things every year, the gold rush to become the next large-scale Internet of Things platform or connected service is a thing of the past. 2014 and 2015 are the “golden” years for IoT venture capital. More than 200 startup companies are established each year (2014: 237; 2015: 209). Since then, the number of new companies established every year has remained stable below 200. Moreover, some IoT startups disappear every year. Among the 1,018 startups identified in the IoT Startups Report & Database 2019 by IoT Analytics, 237 will no longer exist in 2021 and 46 have been acquired.
Start-up investors expect to see high growth rates and initial public offerings (IPOs) or exits in a few years. Among the more than 541 companies in our database that were established from 2013 to 2015 and have not yet conducted an IPO, 37% have reached a large-scale scale, laying the foundation for potential public offerings in the next few years.
Commenting on the research results, Knud Lasse Lueth, CEO of IoT Analytics, said:
“COVID-19 has had a devastating impact on start-up funding in 2020. Due to the global cessation of investment, the funding of IoT startups has increased significantly in the second quarter of 2020 ($127 million) and the third quarter of 2020 ($31 million) Decrease. However, the total investment in IoT startups has since returned to the level before COVID-19. The contribution to IoT startup funds in the fourth quarter of 2020 reached 372 million US dollars, compared with 2019, the overall 2020 Funds increase.”
Philipp Wegner, Senior Analyst at IoT Analytics, said:
“Software is the most competitive area for IoT startups. Most IoT startups (77%) provide dedicated IoT software products, while 45% provide IoT hardware, 17% provide IoT connectivity, and 14% provide IoT Connected services (note: many startups compete in more than one category).”
In IoT software, data and analysis are the largest part (37% of all new IoT startups in 2020). New IoT security startups are also rapidly emerging. IoT startups that focus on IoT security account for 10% of all IoT startups established in 2020.
notes: To be included in IoT Analytics’ IoT startup company database, the company must be established in January 2013 or later, and must focus on building solutions for the Internet of Things and provide partial solution stacking layers in at least one area of ​​IoT technology. Scale-up (as defined in this report) is a startup that meets at least two of the following three requirements: annual revenue of more than $1 million, more than 50 employees, and at least B round of financing.
