While the Connected Industry offers investors a clear investment opportunity, typical venture capital models are unlikely to deliver desired returns. We examine why a new approach is required – one that fits with the math that is likely to play out.
The Industrial Internet of Things (IIoT) market is bursting with innovation. New connected devices and edge technologies along with new analytics, security, and integration platforms are transforming the way we work and live in more ways than we could have imagined.
Connected Industry innovation, however, is not coming from incumbent players; instead, this disruption is largely being driven by young companies. Back in October 2014, Gartner predicted that, by 2017, 50 percent of IoT companies would be less than three years old. Reflecting this prediction, in the last three years the vast majority of VC financing – nearly three quarters by deal volume and value – went to early and mid-stage stage companies through series C.