Which IoT platforms received investment?

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The IoT investment landscape has reached $1.457 billion through mid-2025, marking a decisive shift toward late-stage growth platforms rather than early hardware experiments.

Smart city AI, industrial cybersecurity, and satellite connectivity dominate the funding rounds, with Chinese and American companies securing the largest checks. Corporate venture capital from telecom giants and manufacturing leaders signals strategic partnerships beyond pure financial returns.

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Which IoT platforms secured the largest funding rounds in 2024 and 2025?

Terminus Technologies topped all IoT funding with a $276 million Series D led by Sequoia Capital China and SoftBank Vision Fund.

The Chinese smart city platform's massive round reflects government infrastructure spending and Middle East expansion plans. Terminus combines AI traffic optimization with public safety robotics, positioning it as a full-stack municipal technology provider rather than a point solution.

Armis Security followed with $200 million from General Catalyst and Alkeon Capital for industrial IoT cybersecurity. The company's asset intelligence platform monitors over 4 billion devices globally, making it essential infrastructure as factories digitize. Platform Science raised $125 million for fleet telematics, while TRACTIAN secured $120 million for condition monitoring analytics.

Three companies tied at $100 million: Fleet Space (space-based IoT), Nozomi Networks (critical infrastructure security), and Claroty (industrial cybersecurity). This clustering around $100-200 million suggests mature platforms reaching global scale rather than experimental technologies.

The funding sizes indicate investors prefer proven business models with clear revenue streams over speculative hardware plays.

Who are the lead investors and what specific IoT sectors do they target?

SoftBank Vision Fund leads IoT infrastructure investments, backing both Terminus Technologies and 1NCE's connectivity platform.

General Catalyst focuses on cybersecurity-adjacent IoT, investing in both Armis Security and AssetWatch for industrial monitoring. Sequoia Capital targets both hardware-software integration (Blues) and smart city platforms (Terminus), showing preference for full-stack solutions.

Corporate venture capital dominates strategic rounds. Deutsche Telekom co-led 1NCE's $60 million round to integrate IoT connectivity with telecom services. Intel Capital backed Skylo's satellite IoT to advance chip-to-cloud integration. Ricoh Innovation Fund invested in Butlr's thermal sensing to expand workplace analytics services.

Sector-specific investors include Prologis Ventures (logistics real estate) funding Platform Science's fleet management, and Teachers' Venture Growth backing Fleet Space's minerals exploration IoT. This strategic alignment suggests investors seek operational synergies beyond financial returns.

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What specific technologies and business models are these funded IoT companies building?

Smart city platforms like Terminus develop integrated AI systems combining traffic optimization, public safety monitoring, and robotic automation for municipal governments.

Industrial IoT dominates funding with three distinct approaches. Cybersecurity platforms (Armis, Claroty, Nozomi) secure connected manufacturing assets and critical infrastructure. Predictive maintenance companies (TRACTIAN, AssetWatch, Augury) use AI to analyze machine health and prevent failures. These platforms typically charge $50-500 per monitored asset monthly.

Connectivity-as-a-Service emerges as a major category. 1NCE operates as an MVNO providing global IoT connectivity through a single SIM card, while Skylo enables direct satellite communication for devices beyond cellular coverage. Both companies embed connectivity costs into software subscriptions rather than traditional telecom billing.

Privacy-preserving sensing represents a newer approach. Butlr uses thermal imaging and AI to track occupancy and movement without cameras or personal identification, addressing enterprise privacy concerns in workplace analytics.

Hardware-agnostic automation platforms like Viam provide cloud-based robotics management across different manufacturers, targeting the fragmented industrial automation market.

Which regions dominate IoT platform investments and why?

North America captures 51% of total IoT investment ($745 million) through mid-2025, driven by enterprise software adoption and industrial automation demand.

The United States leads in cybersecurity and analytics platforms, with companies like Armis, Platform Science, and TRACTIAN attracting large growth rounds. American investors prefer software-heavy business models with recurring revenue and strong gross margins above 70%.

Asia-Pacific accounts for 26% ($380 million), anchored by China's Terminus Technologies mega-round and Australia's strength in satellite IoT through Fleet Space and Myriota. China's smart city investments reflect government infrastructure priorities, while Australia's space capabilities drive satellite connectivity innovation.

Europe represents 12% ($180 million), led by Germany's 1NCE connectivity platform. European investments focus on industrial applications and regulatory compliance, with stronger emphasis on data privacy and environmental sustainability compared to other regions.

Latin America and other regions capture 11% ($152 million), primarily through companies with global operations rather than local-focused platforms.

What is the total funding amount and how does it break down by investment stage?

IoT platforms raised $1.457 billion total through mid-2025, with 75% concentrated in late-stage growth rounds.

Series C through Series E rounds account for $1.285 billion across 12 deals, averaging $107 million per round. This concentration in late-stage funding indicates the IoT market has matured beyond early experimentation into proven, scalable platforms.

Series B rounds totaled $170 million across 2 deals, while seed and early equity investments captured only $75 million across 2 deals. The limited early-stage activity suggests investors prefer platforms with demonstrated product-market fit and clear revenue trajectories.

Growth rounds dominate because IoT platforms require significant capital for global infrastructure deployment, regulatory compliance across multiple countries, and integration with enterprise systems. Unlike pure software plays, IoT companies often maintain physical infrastructure or hardware partnerships that increase capital requirements.

The average deal size of $91 million across all stages reflects the infrastructure-heavy nature of successful IoT platforms.

Which emerging technologies are attracting the most IoT R&D investment?

AI-enhanced analytics leads IoT R&D funding, with companies like AssetWatch, Augury, and Viam building machine learning models for predictive maintenance and autonomous operations.

Satellite IoT represents the fastest-growing technology segment. Skylo raised $30 million for direct-to-device satellite connectivity, while Myriota secured $34 million for low-power orbital networks. These platforms target the 80% of Earth's surface lacking cellular coverage, enabling applications in agriculture, maritime, and remote industrial sites.

Privacy-preserving sensing technologies attract significant corporate investment. Butlr's thermal AI approach avoids camera-based monitoring while providing detailed occupancy and behavioral analytics for commercial real estate and healthcare facilities.

Edge computing integration becomes essential for real-time IoT applications. Investments focus on chip-to-cloud platforms that process data locally while maintaining cloud connectivity for management and updates. This reduces latency and bandwidth costs for industrial automation and autonomous vehicle applications.

Cybersecurity remains critical as IoT deployments expand. Platforms like Armis and Claroty develop specialized security for operational technology (OT) environments where traditional IT security approaches fail.

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Are major tech giants directly investing in IoT startups or partnering strategically?

Major tech giants primarily pursue strategic partnerships rather than direct equity investments in IoT startups, focusing on integration and standards development instead of ownership stakes.

Amazon and Google remain notably absent from direct startup investments, preferring to compete through AWS IoT Core and Google Cloud IoT services. Both companies integrate with funded platforms like 1NCE and Skylo through cloud partnerships rather than taking equity positions.

Siemens focuses on acquisitions of established companies (like Altair for $10 billion) rather than startup funding, though they participate in industry standards development through initiatives like Project Margo for factory automation.

Telecom majors take a different approach with strategic investments. Deutsche Telekom co-invested in 1NCE to integrate IoT connectivity services. SoftBank's Vision Fund backs multiple IoT infrastructure companies including Terminus and 1NCE. Intel Capital actively invests in chip-adjacent companies like Skylo to advance semiconductor integration.

Corporate venture arms from industrial companies prove most active. Ricoh Innovation Fund invested in Butlr for workplace services integration, while automotive CVCs like BMW i Ventures back Skylo for connected vehicle applications.

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What funding stages and deal structures are most common in recent IoT investments?

Series C and later rounds dominate IoT funding, representing 12 of 16 major deals and $1.285 billion in total investment.

This late-stage concentration reflects IoT platforms requiring proven customer traction before significant scaling. Unlike pure software companies that can achieve rapid growth with minimal capital, IoT platforms need substantial investment for hardware partnerships, regulatory compliance, and global infrastructure deployment.

Growth rounds typically range from $30-100 million, with outliers like Terminus at $276 million driven by specific market opportunities. Series B rounds average $85 million, significantly higher than software-only companies due to infrastructure requirements.

Strategic partnerships accompany most major funding rounds. 1NCE's $60 million round included integration agreements with AWS and Meritech for expanded SaaS adoption. Butlr's funding came with Ricoh sales channel access and Wistron manufacturing partnerships.

Equity stakes typically range from 15-25% for growth rounds, with strategic investors often accepting smaller stakes in exchange for operational partnerships. Corporate venture capital participants frequently negotiate board observer rights and technology licensing agreements alongside their investments.

What specific deal terms and strategic partnerships emerged from major funding rounds?

Strategic partnerships increasingly accompany IoT funding rounds, with investors seeking operational integration beyond financial returns.

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What trends are shaping investor focus between hardware, software, and connectivity solutions?

Software and connectivity platforms attract 85% of IoT investment, with pure hardware plays largely eliminated from major funding rounds.

Connectivity-as-a-Service emerges as the preferred model over traditional hardware sales. Companies like 1NCE and Skylo embed connectivity costs into monthly software subscriptions, creating predictable revenue streams investors prefer over one-time hardware transactions.

AI-enhanced software platforms command premium valuations due to their scalability and data monetization potential. AssetWatch, Augury, and TRACTIAN use machine learning to analyze IoT sensor data, creating valuable insights beyond raw connectivity or monitoring.

Hardware companies succeed only when integrated with compelling software platforms. Blues combines cellular modules with cloud integration tools, while Butlr pairs thermal sensors with privacy-preserving AI analytics. Pure connectivity or sensor hardware companies struggle to attract significant investment.

Platform approaches that aggregate multiple IoT functions attract the largest rounds. Terminus combines traffic optimization, public safety, and robotics into a unified smart city platform, justifying its $276 million valuation through comprehensive municipal solutions.

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What investment projections and emerging focus areas can be expected for 2026?

IoT investment is projected to exceed $2 billion in 2026, driven by AI integration, satellite connectivity expansion, and privacy-safe sensing technologies.

AIoT (AI + IoT) convergence will dominate new funding as platforms integrate machine learning directly into edge devices and sensors. This reduces cloud dependency while enabling real-time autonomous decision-making in manufacturing, transportation, and building management.

Non-terrestrial networks represent the fastest-growing category, with LEO and MEO satellite services expanding beyond remote coverage to provide backup connectivity for critical infrastructure and autonomous vehicles in urban areas.

Edge computing security becomes essential as IoT deployments proliferate. Integrated platforms offering edge-to-cloud management with built-in cybersecurity will attract significant investment, particularly for critical infrastructure and healthcare applications.

Sustainable IoT solutions emerge as a new focus area, with investments targeting energy efficiency platforms, smart grid optimization, and environmental monitoring systems. Corporate sustainability mandates drive enterprise adoption and justify premium pricing for green technology platforms.

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Conclusion

Sources

1. IoT Analytics - IoT 2024 Review
2. 1NCE - $60 Million Funding Press Release
3. Satellite Today - Skylo $30M Funding
4. IoT Evolution World - 1NCE Funding News
5. Clay - Butlr Funding Analysis
6. Butlr - Series B Funding Announcement
7. CRN - Hottest IoT Startups 2025
8. IoT Analytics - Startup Landscape