Venture capital takes a dimmer view of Internet of Things start-ups
PitchBook reports that a decline in funding was most dramatic for retail and healthcare IoT start-ups.
PitchBook reports that venture capital investment in internet of things (IoT) start-ups dropped sharply in the second half of 2022, and the outlook for 2023 shows a continuation of the downward trajectory.
According to an “Emerging Tech Research” report, the conclusion from PitchBook is that this is a sector more sensitive to macroeconomic risk. Specifically, the organization’s research found that:
- Venture capital investors pulled back support most dramatically from retail and healthcare IoT start-ups.
- In the most resilient sectors, use cases including commercial drones, connected buses, and manufacturing monitoring devices maintained revenue growth of more than 30 percent in 2022.
- Investors made big bets on smart home technology last year, but revenue growth for the sector fell short of expectations, leaving uncertainty around start-ups’ abilities to reach growth milestones.
The full report can be downloaded at this link.