As venture capitalists and other investors pour money into the IoT space, start-ups should consider relationships with specialized business accelerators.
According to Venture Scanner, they are “currently tracking 1,955 IoT companies in 20 categories across 49 countries, with a total of $36 Billion in funding.” The graphic below provides a view of how VC investments in IoT are being spread across various IoT categories. Not surprisingly, the enterprise is the strongest category with connected things among businesses driving $964 billion in 2017.
For IoT start-ups entering this rapidly growing market, it may help them attract funding by joining an accelerator. These programs provide start-ups with expert advice, guidance and varying levels of support. Typically, accelerators also invest in their early IoT startups in exchange for equity. More promenient accelerators like Y Combinator attract larger VCs and generate more publicity for their start-up companies.
With the increasing growth of the Internet of Things across industries, some start-up accelerators (and incubators) are specifically focusing on the IoT space. This focus enables the accelerators to provide highly relevant guidance to the unique product-market fit challenges and regulations common among IoT startups.
The link below provides a list of some accelerators that are focused specifically on mentoring companies in the Internet of Things.
Also published on Medium.