Reporting on the Internet of Things

Filed under: High Tech / IT / Software, Industry Info, Tech Trends

VC Market Dynamics Affecting IoT  -SVB

Reporting on the Internet of Things

The most viable IoT: Healthcare IT, Energy Efficiency, and Enablement technologies, this and more in the new Silicon Valley Bank report.

 

 

The Silicon Valley Bank (SVB) strategic advisory experts have just put out a new report on the Internet of Things. This analysis explores the market forces, financing dynamics, and then looks at niche markets such as enablement, connected healthcare, and energy efficiency.

 

The Internet of Things (IoT) was coined by then product manager at Procter & Gamble, Kevin Ashton, back in 1999. Kevin wrote that “If we had computers that knew everything there was to know about things—using data they gathered without any help from us—we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best. The Internet of Things has the potential to change the world, just as the Internet did. Maybe even more so.”

 

The SVB’s IoT report covers advancement in technology that has poised the IoT for a renaissance, and looks at the promise and hurdles ahead. It calls out the gap between the offering of large tech companies and the areas where growth is strongest. And it states that investors are shying away from IoT technologies until the benefits can be quantified.

 

Niche Spotlight - Enablement IoT report SVB

The IoT encompasses a vast number of sectors such as Communication, Connected Healthcare, Monitoring, Enablement, Energy and Environment, Meter/Utilities, Enterprise and IT, Heavy Industry, Retail and Commerce, Smart Buildings, and more.

 

IoT companies are faced with funding challenges. Venture Capital funding of IoT is facing imbalances in supply and demand. There are more angel or seed financed companies now than there are institutional funds to continue to fund them as they move into series A stage.

 

SVB reports that to successfully bring a product to market and expand (Series C and beyond), $30M+ in total invested capital is required on average. Lack of investment may be attributed to things like s hardware development, inventory management, long sales cycles, and/or slower than expected up-take.

 

The most viable business cases have been in Healthcare IT, Energy Efficiency, and Enablement technologies. IoT enablement technologies are the base upon which all other IoT products are built, and while experiencing strong growth, these are also experiencing increased cost of goods sold and operating expenses.

 

There are certainly great socio-economic benefits to come from the Internet of Things. Capital to fuel the innovation will continue to be allotted slowly as investors watch for proven quantifiable business cases.

 

Read the full SVB Internet of Things report online.

 

About SVB Analytics Strategic Advisory Service

For over 30 years, SVB has been at the center of the venture capital world, reviewing business models and providing valuation services to thousands of early-stage disruptive companies. Because of this, SVB Analytics’ strategic advisory service has access to unique data that allows us to make both grounded valuations of companies, and forecasts of new markets that help investors evaluate opportunities with leading early-stage businesses.

 

Reigniting Cleantech – Top 5 Reasons for a Post Bubble Party

Filed under: Industry Info, Tech Trends

Greg_Neichin

Greg Neichin

Reigniting Cleantech

Top 5 Reasons for a Post Bubble Party

by Greg Neichin (reposted with permission, from the Cleantech blog.)

 

It is quite fashionable these days, especially amongst those in and around Silicon Valley, to talk about the demise of cleantech.  This discussion has always seemed silly to me.

There are only two groups fascinated by this dialogue: (a) US investors who were burned in deals that they likely should not have touched in the first place and (b) industry pundits & consultants with too much time on their hands.  Both of these groups are frustrated and vocal, so they create substantial noise, but far less signal.

As Khosla Venture’s Andrew Chung recently said, in a thoughtful piece by Katie Fehrenbacher covering the “cleantech is dead” meme, “venture is a highly cyclical business”.  Read more »

Pacific States Taking the Lead in Advanced Transportation, Green Buildings, Clean Electricity, and Clean Tech Investment

Filed under: Industry Info, Tech Trends

Pacific States Taking the Lead in Advanced Transportation, Green Buildings, Clean Electricity, and Clean Tech Investment

Clean Edge Website

Find more on the Clean Edge Website

Information from the Clean Edge 2012 U.S. Metro Clean Tech Index

 

 

You probably already know the Clean Edge State Clean Energy Index but have you seen the new Metro Clean Tech Index? This report evaluates the biggest 50 metro areas to highlight clean-tech leadership, innovation, and cluster development. The evaluation categories focus on four sectors: green buildings; advanced transportation; clean electricity & carbon management; and clean-tech investment, innovation, & workforce. Read more »

Tech Trends: Software Biggest Winner of Venture Capital

Filed under: High Tech / IT / Software, Tech Trends

Tech Trends

Software Biggest Winner of Venture Capital

 

The software sector captured 50% of the VC investments in the first quarter according to the latest MoneyTree report, the quarterly study of venture capital investment activity in the US, followed by the biotech and green energy sectors.  

Investments were up slightly in the first quarter, at $5.9 billion – the first time in four years since the dollar amount invested in Q1 were greater than Q4. That said the number of deals invested in was down to 736 nationwide – the lowest quarterly number since Q3 2009.

Software was the leading recipient of dollars with $1.1 billion invested in Q1 and the leader in number of deals funded at 187; these are both small decreases over last quarter. Read more »

Green Job Trends – the “Most Likely to Succeed”

Filed under: Jobs/Employment, Tech Trends

Green Industry / Job Trends

This month, we call your attention to the 2010 Global Cleantech 100 Report –  published 10/12/2010 by the Cleantech Group.

The “Most Likely to Succeed” Cleantech Companies

The Cleantech Group puts out a list annually of the top 100 cleantech companies. Ranked by the cleantech community and industry insiders, the goal is to showcase the “most likely to succeed” private companies. The Lust List represents the crème de la crème; 2010 features Silver Spring Networks, Zipcar, Opower, Bridgelux, and BrightSource Energy.  This report highlights several interesting trends such as geographical and sectorial movement, venture capital investment and return, and effects of the government investment in the industry.

Dynamic Industries

57 of 100 companies are North American (55 are from the U.S., with California leading with 33 companies, followed by Massachusetts with 8 ) Read more »

High Tech & Clean Tech Job Trends, September 2010

Filed under: High Tech / IT / Software, Industry Info, Tech Trends

High Tech & Clean Tech Job Trends

From 2000 to 2008, Silicon Valley high-tech industries lost more than 108,400 jobs (19.9% of their total workforce), and real wages went down by 13.5%. High-tech industries outside of Silicon Valley saw nearly 431,000 jobs losses but had a more modest 6.2-percent rate of decline in employment over the 2000–08 period Read more »

High Tech Job Trends – August Newsletter

Filed under: High Tech / IT / Software, Industry Info, Jobs/Employment, Tech Trends

 

 

High Tech Job Trends

A number of recent reports show job growth attributed to the stimulus measures: The Council of Economic Advisors (CEA) shows a creation/retention of 2.5 to 3.6 million jobs over what it would otherwise have been. The Congressional Budget Office (CBO)’s May report indicates that the Recovery Act has created between 1.2 million and 2.8 million workers, and projects up to 3.7 by the end of Q3.

 

The fiscal stimulus increased substantially in the first quarter of 2010 and further in the second quarter (from $80 billion in the fourth quarter of 2009 to $108 billion in the first quarter of 2010 to $116 billion in the second quarter of this year).  Government investment in areas such as infrastructure, clean energy, and communications technology increased by roughly 50 percent between the first and second quarters of 2010. Read more »

Green Job Trends – August Newsletter

Filed under: Industry Info, Tech Trends

Green Job Trends

A number of recent reports show job growth attributed to the stimulus measures: The Council of Economic Advisors (CEA) shows a creation/retention of 2.5 to 3.6 million jobs over what it would otherwise have been; nearly one million of those jobs in clean energy or a related field. The Congressional Budget Office (CBO)’s May report indicates that the Recovery Act has created between 1.2 million and 2.8 million workers, and projects up to 3.7 by the end of Q3.

The fiscal stimulus increased substantially in the first quarter of 2010 and further in the second quarter (from $80 billion in the fourth quarter of 2009 to $108 billion in the first quarter of 2010 to $116 billion in the second quarter of this year).  Government investment in areas such as infrastructure, clean energy, and communications technology increased by roughly 50 percent between the first and second quarters of 2010. Read more »

Clean & Green Job Trends – May 2010

Filed under: Jobs/Employment, Tech Trends

Clean & Green Job Trends

(from our May Newsletter)
Venture capital investment has dried up over the last few years, with 2009 being one of the worst years ever; that said clean energy investment declined by only 6.6%. 2010 is showing encouraging signs of recovery and is predicted to grow by 25% to $200 billion according to Pew. Quarter 1 of this year shows NASDAQ indices up over last year: CELS (clean energy industries) and QGRD (electric/Smart Grid) are both up nearly 50%; QWND (wind related industries) is up 32%. Read more »

Where does the growth come from? A Quick Look at Venture Capital Trends

Filed under: High Tech / IT / Software, Industry Info, Tech Trends

Where does the growth come from? – A Quick Look at Venture Capital Trends

“New and young companies and the entrepreneurs that create them are the engines of job creation and eventual economic recovery” according to the Kauffman Foundation. Both start-ups and young companies (age 2-5 years) account for the net job creation in the American economy; larger companies tend to grow by mergers and acquisitions. Investment is critical to funding startup and young companies. Venture Capital trends were dismal in 2008 and 2009, but are showing a comeback in Q4 2009 and Q1 2010. Read more »