Our IoT Emerging Tech Research VC update for H1 2021 identifies potent segments for startups, including cybersecurity, edge AI and predictive maintenance. Key insights include:
VC-backed exit value has already more than doubled year-over-year to $30.4 billion, driven by IPOs for IoT-adjacent security companies. But the stock of IoT software company C3.ai has plunged following a record-setting IPO late last year.
Funding for pure-play IoT startups has softened, suggesting that the market is better addressed as a secondary use case for software products than as part of a primary value proposition.
Device-level IoT security has emerged as a hot area, with two startup acquisitions by security incumbents in the space thus far in 2021.