By: JEFF DORSCH
Internet of Things startups took in more than $1.35 billion from corporate and private investors during the latter half of 2017, for a total of about $2.2 billion in the full year.
Chicago-based Uptake Technologies, an Industrial IoT startup, had the biggest haul of the year, with $117 million raised in a Series D round, on top of a $90 million Series C round earlier in 2017, bringing its total funding to more than $250 million. It strengthened its position as an IoT “unicorn,” which is now valued at $2.3 billion.
“We’re on a growth trajectory now where there is virtually nothing standing in our way from being the predictive analytics market leader across every heavy industry, from oil & gas to mining and beyond,” Uptake CEO Brad Keywell said in a statement. “The opportunity is too significant for us to not double down right now.”
Another IoT unicorn, C3 IoT of Redwood City, Calif., reported raising another $100 million in mid-January of 2018. Given the timing of that announcement, it’s almost certain that all the checks going into that round were signed by the end of 2017. C3 IoT has added artificial intelligence technology to its software product portfolio, no doubt pleasing existing investors TPG Growth, Breyer Capital, and Sutter Hill Ventures, while also attracting a new backer, The Rise Fund.
“C3 IoT is focused on running a rapidly growing, profitable, cash-positive business driving digital transformation at many of the world’s leading corporations. This capital will be deployed to substantially increase service and distribution capacity globally,” Thomas M. Siebel, chairman and CEO of C3 IoT, said in a statement.
Other big rounds in the second half of 2017 included $95.4 million for Preferred Networks, $89 million for Cradlepoint, $88 million for ForgeRock, $60 million for Ayla Networks, $50 million for TrackR, €40 million ($49.33 million) for Cubic Telecom, $40 million for Globetouch, $38 million for VitalConnect, $34 million for Automile, $33 million for Iguazio, $30 million for FogHorn Systems, $28 million for Maana, $27.9 million for Sixgill, and $27 million for Bastille Networks.
2017 was also a good year for IoT-related companies to cash out in big paydays.
Late in the year, Marvell Technology Group announced its plans to acquire Cavium for about $6 billion in cash and stock, bolstering Marvell’s IIoT offerings. The chip vendors expect to complete the transaction in mid-2018.
Silver Spring Networks was bought by Itron for about $830 million, net of $118 million in Silver Spring’s cash. Deere & Company purchased Blue River Technology, an agricultural IoT startup using machine learning technology, for $305 million in cash.
On the semiconductor side of IoT, Dialog Semiconductor acquired Silego Technology, a supplier of configurable mixed-signal ICs, for $276 million in cash, plus another $30.4 million in contingent consideration. Silicon Labs is buying the Z-Wave business of Sigma Designs in an asset sale valued at $240 million.
August Home raised $25 million in a private funding round during 2017. A year earlier, Amazon reportedly offered $100 million to acquire August Home, according to The Information, a bid that the startup declined. For its patience, August Home was acquired by Assa Abloy of Sweden last year for $150 million.
ForeScout Technologies, a cybersecurity startup, completed an initial public offering in October, raising $133.6 million.
According to PitchBook, the leading investors in IoT technologies are New Enterprise Associates (NEA), Intel Capital, Kleiner Perkins Caufield & Byers, True Ventures, Right Side Capital Management, GE Ventures, Techstars, and Qualcomm Ventures, in roughly that order.
Deloitte notes that venture-capital funding of AI-focused IoT startups picked up last year, with such startups raising $705 million in the first eight months of 2017. There were 21 acquisitions of AI-focused IoT startups during the first eight months of last year, compared with 24 in all of 2016 and 11 in 2015.
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