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So. Many. Platforms getting funding: Harbor Releases Monthly IoT Investment Report

IoT investment in the month of March totaled $18.1B, but a majority of this includes Intel’s massive $15.3B acquisition of Mobileye. When adjusted to exclude this purchase, allocated capital was $2.8B, down from $3.4B in February and up from $955mm in January.

  • Companies You Should be Watching – Axcelis Technologies
  • M&A and Investments – MetroNet / Venus, Oakhill (Firstlight) / Finger Lakes Technologies and Sovernet, EQT Partners / Innovyze, HP Enterprises / Nimble Storage, Intel / Mobileye, Software AG / Cumulocity, CA Technologies / Veracode, GE / Monica Healthcare, Toshiba / Landis+Gyr
  • People Moving – Intel, Baidu, Avnet
  • Earnings – Progress Software, Marvell Technology, KMG Chemical, Munich Re
  • Private Funding – Mythic, Innovium, Casetext, Kensho, DataRobot, WayRay, Nearpod, Autonomic, Filament, Cradlepoint, Confluent, Arable, Iconnectiv, Borqs, Evrythng, Flo Live, Pepper, Chowbotics, Deep Sea, MapR, Cloudera, WideOpenWest, Okta
  • Companies You Should be Watching – Axcelis Technologies
  • M&A and Investments – MetroNet / Venus, Oakhill (Firstlight) / Finger Lakes Technologies and Sovernet, EQT Partners / Innovyze, HP Enterprises / Nimble Storage, Intel / Mobileye, Software AG / Cumulocity, CA Technologies / Veracode, GE / Monica Healthcare, Toshiba / Landis+Gyr
  • People Moving – Intel, Baidu, Avnet
  • Earnings – Progress Software, Marvell Technology, KMG Chemical, Munich Re
  • Private Funding – Mythic, Innovium, Casetext, Kensho, DataRobot, WayRay, Nearpod, Autonomic, Filament, Cradlepoint, Confluent, Arable, Iconnectiv, Borqs, Evrythng, Flo Live, Pepper, Chowbotics, Deep Sea, MapR, Cloudera, WideOpenWest, Okta
The fiber consolidation continued this month, with MetroNet tacking onto their London assets, and Oak Hill quietly assembling fiber leadership in New England. Other notable M&A actions include HP Enterprises diversifying into mid-market hyperscale storage with their purchase of Nimble, and a curious lack of interest in Landis+Gyr’s smart meter leadership.

Mythic led the innovative companies in private investment this month after they raised funds for artificial intelligence on a chip, and a close second was Filament, who is using blockchain to secure industrial networks.

Overall, March was a month highlighted by the connected car as Intel’s acquisition of Mobileye for a price of 70x enterprise value to EBITDA, on a trailing twelve-month basis (TTM), reflected the high demand for technologies in this market. But more importantly, the acquisition highlights a new world of investing strategy, where a future vision of technology and ecosystems is essential for survival.

The connected car is similar to many of the Internet of Things (IoT) ecosystems emerging between industries that have previously never held relationships. Traditionally, these companies were segmented by their verticals, like the semiconductor manufacturers or the analytics software providers, but the internet of things is quickly blurring those lines.

The IoT is forcing horizontal integration; companies are partnering and acquiring outside their core industry, in preparation for these blurred boundaries. Intel for example, has been heavily criticized for their valuation of the semi-manufacturer, but few have realized Mobileye’s potential as an edge-enabled software company. In the near future, analytics and communications will be processed on silicon located at the “edge” of the network, as opposed to the current process occurring in the cloud, and these chips will create massive data services for vehicles. So instead of simply expanding their chip offerings, Intel has expanded their position in the value chain by acquiring the ability to create, service, and own data.

This new world of enabling services from connected hardware and infrastructure requires more creative business models and industry-pioneering partnerships, but those who do not adapt to this dynamic will quickly become vertically-siloed and left for dead, with the likes of movie rentals, physical maps, and bookstores.

The full investment report is available for free on the Harbor Research Website, or click on the link below:

Download the March 2017 IoT Investment Report

ABOUT HARBOR RESEARCH

An internationally recognized research, technology, and business development consulting firm, Harbor Research has predicted, tracked, and driven the development of the Internet of Things since its inception in 1984. While the firm’s history is long, its strategy is simple: capture and create value by combining accurate data discovery and analysis with creative systems-thinking. It is this mindset that has given Harbor the privilege of working with some of the greatest companies in the world. Today, Harbor continues to work with C-level executives and top management of some of the world’s most consistently successful companies and innovative startups. Harbor works with clients in a variety of ways including consulting, advising, research and content development, thought leadership, workshop facilitation, and beyond.

Contact:

Nicolas Jeambon

njeambon@harborresearch.com

720.282.8505 x 33