VC investment in IoT companies continues to soar
While the Internet of Things (IoT) is still a growing field, it’s clear that venture capitalists are increasingly taking notice and pumping dollars into IoT-driven startups.
In 2015, overall venture capital funding hit its highest annual mark since 2001 as venture investors poured $128.5 billion into startups, according to Venture Pulse, the quarterly global report on VC trends published jointly by KPMG International and CB Insights.
VC funding in the Internet sector in particular represented a significant portion of that. That trend has continued so far in 2016 which saw one of the strongest quarters for the IoT yet in funding terms at $846 million, second only to the second quarter of 2015, according to CB Insights. The funding jump in the 2016 first quarter marked a 31 percent growth in dollars quarter-over-quarter (funding was also up compared to the same quarter a year prior). Large deals during those three months included a $165 million Series F to Jawbone and a $75 million Series C to Razer.
Augury Systems is a startup that raised $7 million in a Series A round last August.
The company’s goal is to redefine the predictive maintenance industry by bringing its proprietary algorithms, smart sensing device and mobile diagnostics tool to new markets, starting with diagnosing HVAC (heating, ventilation and air conditioning) systems within commercial buildings.
Saar Yoskovitz, Augury’s CEO and co-founder, believes the company’s technology has the potential to save billions of dollars in maintenance and energy costs.
“We believe we should have trackers for the health of mechanical equipment. We can know when to expect something is wrong instead of a machine just breaking down,” he said. “Then once everything is connected we can gather operational and mechanical data on different systems and leverage that.”
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