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Fluctuating fortunes for IoT deal activity

April 18, 2019 / IT-Online

The Internet of Things (IoT) industry seems to have past the hype as concerns around the security of devices connected through IoT start emerging day by day. This reflects in analysis from data and analytics company GlobalData, which reveals that venture capital (VC) funding and mergers and acquisitions (M&A) activity in the IoT marketplace witnessed fluctuating fortunes during 2014-2018. After registering growth in 2015 and 2016, VC funding in IoT space declined in 2017 in terms of value. However, in 2018, the deal value again registered a 8,3% growth, despite drop in volume. Overall, VC deal value increased at a compound annual growth rate (CAGR) of 10,4%. However, deal volume declined at a CAGR of 9,9% during 2014-2018, suggesting growing average deal size. Of the top five VC funded companies during the review period, the US and Chinese companies accounted for two positions each. While the US-based Magic Leap and Carbon3D collectively raised $2,8-billion, the two Chinese firms X...