Mais conteúdo relacionado Semelhante a How should startups embrace the trend of IoT and Big Data (20) How should startups embrace the trend of IoT and Big Data1. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
HOW SHOULD STARTUPS EMBRACE THE TREND OF IOT AND
BIG DATA
APRIL 2017 CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
2. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
OUTLINE
Introduction - state of the industry
IOT
Big Data
AI
Investment in Consumer Hardware
Success stories in the intersection of IoT, Big Data & AI
Core takeaways
3. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
Source: http://www.gartner.com/newsroom/id/3412017
GARTNER’S HYPE CYCLE - AUGUST 2016
Connected
Home
IOT Platform
Commercial
UAVs
Smart Data
Discovery
ML
Autonomous driving
VR
AR
5-10 years adoption
2-5 years
adoption
10+ years
adoption
IOT Platforms &
Smart Data
Discovery on
the rise
5. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
MATURING IOT INVESTMENT SPACE
Source: https://techcrunch.com/2017/01/06/as-connected-hardware-matures-investors-pour-more-funding-into-fewer-companies/
More capital
flowing to later
stage IoT
companies:$1.3B
invested in 174
deals
6. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
IOT IS THE NETWORK OF PHYSICAL OBJECTS THAT CONTAIN
EMBEDDED TECHNOLOGY TO COMMUNICATE AND SENSE OR
INTERACT WITH THEIR INTERNAL STATES OR THE EXTERNAL
ENVIRONMENT.
Forecast of global IOT market development,
2010-2020
0
100
200
300
400
2010 2013 2015 2020
359
1099882
34
161413
Market volume of connected devices, bln.pcs
Market volume by cost of devices, bln.USD
IOT
Source: J’son & Partners Consulting
7. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
THE MOST FUNDED BUSINESS MODELS IN IOT
0
450
900
1350
1800
IOT PLATFORMS IOT NETWORKS HARDWARE MODULES SOFTWARE MODULES SECURITY IOT
521 US$
54 US$
774 US$
908 US$
1 800 US$
296 60 209 63
# OF STARTUPS IN
2008-16
Top Business Models in IOT by Funding (US$ M)
Source: Tracxn
8. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
1. IOT PLATFORMS. BUSINESS MODELS DESCRIPTION.
DEVICE
MANAGEMENT
PLATFORM
APPLICATION
DEVELOPMENT
PLATFORMS
NETWORK
MANAGEMENT
PLATFORMS
END TO END
PLATFORMS
ANALYTICS
PLATFORM
Companies that
provide cloud-
based platforms for
managing devices
connected for IoT
applications
Companies that
provide cloud-based
platforms for
developing and
enabling
applications for IoT
Companies that
provide cloud-based
platforms for
managing network
connectivity and
device provisioning
Companies that
provide E2E platform
for connectivity,
device management
and application
development
Companies that
provide analytical
platform to analyse
and provide business
intelligence to sensor
or device data
$36M $44M $205M $124M $123M
9. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
IOT PLATFORMS BY FUNDING, US $
0
175
350
525
700
DEVICE
MANAGEMENT
PLATFORM
APPLICATION
DEVELOPMENT
PLATFORMS
NETWORK
MANAGEMENT
PLATFORMS
END TO END
PLATFORMS
ANALYTICS
PLATFORM
170M214M
281M
399M
680M
Source: Tracxn
10. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
IOT INFRASTRUCTURE. TOTAL FUNDING, US $
Source: https://svds.com/trends-data-driven-iot/
41
48
28
22
19 2
# OF ROUNDS
0
125
250
375
500
Q1 Q2 Q3 Q4
125m147m
427m
195m
300m
259m
2016 2017
N/A N/A
11. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
2. IOT NETWORKS
NETWORK PROVIDER MESH NETWORK
WIRELESS AND CONNECTIVITY
PROVIDERS WHICH ENABLE
NETWORKING OF IOT, THIS INCLUDES
THE UNLICENSED SPECTRUM
PROVIDERS LIKE SIGFOX AS WELL AS
LICENSED SPECTRUM PROVIDERS
DEVICES AND SOLUTIONS PROVIDERS
BASED ON NETWORK LINKS THROUGH
WIRELESS SURROUNDING NODES. THIS
INCLUDES PROVIDERS FOR VARIOUS
APPLICATIONS LIKE SMART CITIES,
SMART HOMES AND MESSAGING
$712M $196M
Source: Tracxn
12. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
0
75
150
225
300
HARDWARE LEVEL SECURITY NETWORK LEVEL SECURITY
M226 US$
M296 US$
3. IOT SECURITY
HARDWARE LEVEL
SECURITY
NETWORK LEVEL
SECURITY
Source: Tracxn
14. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
BIG DATA INVESTMENTS: MATURITY & DECREASING INVESTMENTS
APPLICATION
DISTRIBUTED
FILE SYSTEM
ANALYTICAL
PROCESSING
MANAGEMENT
TOOLS
BIG DATA
STACK
TOP BUSINESS
MODELS
OPERATIONAL
PROCESSING
REALTIME
PROCESSING
GENERAL
PURPOSE
0
500
1000
1500
2000
0
17,5
35
52,5
70
2012 2013 2014 2015 2016
TOTAL FUNDING # OF COMPANIES
1 100m
727m
2 000m
1 700m
421m
37
58
54
67
5959
67
54
58
37
Total Funding of Big Data Industry (US$)
Source: Tracxn
15. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
BIG DATA INFRASTRUCTURE. TOTAL FUNDING, US $
Source: https://svds.com/trends-data-driven-iot/
0
65
130
195
260
Q1 Q2 Q3 Q4
100m
151m 146m
125m
197m
254m
2016 2017
N/A N/A
# OF ROUNDS38
21
42
2
27
33
16. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
TOP BUSINESS MODELS IN BIG DATA RANKED BY AMOUNT OF
FUNDING, US $
0
1000
2000
3000
4000
BIG DATA
STACK
OPERATIONAL
PROCESSING
ANALYTICAL
PROCESSING
MANAGEMENT
TOOLS
REALTIME
PROCESSING
APPLICATION GENERAL
PURPOSE
DISTRIBUTED
FILE SYSTEM
24M73M175M263M
782M
949M
1 400M
3 200M
Source: Tracxn
19. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
AI & DATA - WHY NOW?
Increasing computing performance & improving image/speech
recognition accuracy in 2010-2016
Source: Nvidia Report
20. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
AI VENTURE FUNDING BY SECTORS (US$ M)
ML/DL (apps)
NLP
Computer
vision
(general)
Smart robots
Virtual
personal
assistants
0 750 1500 2250 3000
Source: Venture Scanner (2016)
22. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
TRENDS ARE REVERSE IN CONSUMER HARDWARE, BUT SECTOR IS
MATURING
0
1250
2500
3750
5000
2015 2016
1 2981 497
4 068
3 102
Global US
•Funding in consumer
hardware in the US
dropped by 13% due
to less seed rounds
• Global consumer
hardware investment
grew by over 30% -
driven by Asia &
other regions
+30%
-13%
Consumer Hardware Investment in the US & Globally (US$ M)
Source: Tracxn
23. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
Success Stories in the intersection of IOT, Big Data, AI &
Consumer Electronics
24. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
BUSINESS MODELS IN CONNECTED HARDWARE BY INDUSTRIES
HOME SECURITY: RING, TILE, SMART CAMERAS
FITNESS: PELOTON
SAFETY MONITORING: OWLET BABY CARE
25. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
RING - VIDEO DOORBELL
Doorbell + video surveillance
Price: $199 - 249
Subscription: $3/month or more
0
30
60
90
120
2016
18
120
Sales Subscription
Revenue in 2016 (US$ M)
Source: Fortune
$200M
capital raised
2016: sold
600,000
devices
26. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
PELOTON - HOME CYCLE
0
40
80
120
160
lifetime
35
150
Sales
Subscription (annual)
Revenue through lifetime(US$ M)
Bicycle price - $2,000
Subscription: $39 per month for more than
4,000 different workouts
+ instructors
0.3% churn
Source: Techcrunch
$120M
capital raised
2016: 75,000
users
27. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
AMAZON ECHO - LACK OF FEATURES WITHOUT SUBSCRIPTION
Access to music (Amazon
service) and orders from
Amazon through this
platform is available only
via subscription $99/month
28. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
Source: http://www.businessinsider.com/amazon-echo-sales-figures-stats-chart-2016-12
ESTIMATED WORLDWIDE UNITS SALES
0
1,5
3
4,5
6
2015 2016
5,2m
2,4m
AMAZON ECHO SALES DOUBLES, ALEXA SKILLS MULTIPLIED BY 5X
SKILLS AVAILABLE IN THE
ALEXA SKILLS STORE
0
1500
3000
4500
6000
Q2'16 Q3'16 Q4'16
5 100
3 100
1 0001 000
3 100
5 100
29. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
TILE
0
30
60
90
120
lifetime
54
112
Sales
Subscription (annual)
Revenue through lifetime(US$ M)
Price: $25
Subscription: $1 / month
+ developed a platform - smart location
network
2016: 4,5 million
users
$34M
capital raised
30. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
OWLET BABY CARE
0
5
10
15
20
lifetime
20
Sales
Revenue through lifetime(US$ M)
Price: $299
Care plan subscription: $50 /
year
2016: 60,000
devices
Source: Forbes, Wearable, CNBC
$24M
capital raised
32. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
COLLECT & ANALYZE SLEEP
DATA
RUVENTO PORTFOLIO CASE STUDIES
COLLECT UNIQUE DATA
33. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
TIME MANAGEMENT SOFTWARE
& TRACKING DEVICE
RUVENTO PORTFOLIO CASE STUDIES
CYCLING DATA COLLECTION
35. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
• Companies in the intersection of IoT, AI & Big Data are the
next big trend: Big Data and IoT alone are becoming
mature
• Value of IoT for AI & Big Data: ability to collect unique &
large volumes of data
• Data subscription services in consumer IoT are best
monetised in home security, monitoring and safety (Ring,
all cameras, Owlet), as well as fitness (Peloton)
• IoT combined with AI & Big Data have wider opportunities
to monetise if built as IOT platform (Ayla)
DATA- & AI- DRIVEN IOT COMPANIES ARE THE NEXT TREND
IOT
AI
BIG DATA
36. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
IOT CONNECTIVITY PLATFORM: AYLA
Source: Forbes, Wearable, CNBC
Ayla helps solve connectivity issues
in IoT devices - through Ayla-cloud.
Business model:
Charge device developers per
transaction.
Sell Ayla-modified chips
Guarantee high quality & connectivity.
$64M
capital raised
37. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
CYBERSECURITY PLATFORMS
CYBERSECURITY FOR CONNECTED DEVICES:
- security chip integrated in a device (Afero, raised
$20M+)
- software
Hackers took over 100,000 devices in Q4-2016
(CBNC).
This problem is especially acute for connected and
autonomous cars.
According to Gartner, still large portion of users
concerned with privacy & security issues.
Cybersecurity business models are
recurring subscription plans and
software sale
Source: https://techcrunch.com/2016/01/28/security-and-privacy-standards-are-critical-to-the-
success-of-connected-cars/
38. CONFIDENTIAL AND PROPRIETARY
© 2017 Ruvento Ventures Pte. Ltd. All rights reserved.
• Use end-to-end, security and other platforms
that make development faster & more reliable
• Costs may be higher but can significantly
reduce development team and avoid painful UX
issues for users
• Integrate AI algorithms on top of unique &
valuable datasets - opportunity to build
interesting business case and subscription
model
RECOMMENDATION FOR STARTUPS IN IOT & CONNECTED HARDWARE