According to Everis, the number of deals in the sector will be 9% lower than last year, while investment volume will grow by 15%. This is a sign that the sector is in the process of maturing, fewer deals are being done, but each company is betting more heavily. In terms of the countries leading the sector, the USA is the biggest forerunner.
What is the current state of the IoT sector?
Currently, investment is concentrated in startups According to Everis, there is a high probability for startups created between 2012 and 2014 to experience M&A transactions or to receive short-term equity investments.
Furthermore, the report's data indicates that those startups created in 2013 will consolidate their business in the near future, impacting businesses across all sectors and consumers alike on a large scale. All indications are that now is the best time to start investing in this market, due to the opportunities that come with a more diversified business ecosystem and lower risks.
Startups are, therefore, the entities that have best adapted their operations to this wave of innovation, building new business models and locating and exploiting all the potential of the sector. However, the scarcity of material and financial resources on the part of startups and the lack of disruptive ideas and models on the part of technology giants and large corporations means that the relationship between startups and technology giants is not always easy. partnership between them to improve their offer and increase their market penetration.
USA as a leading country
In the US there are more than 4,000 IoT companies, followed by Europe, with more than 2,000 startups.
On the other hand, the United States also concentrates the largest financing opportunity for start-ups, as those located in the country have so far received more than $26 billion in investment. In contrast, funding at the European level lags far behind that of the US. Europe must start investing more in the IoT market if it wants to remain competitive.
Largest rounds in the IoT sector so far in 2017
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