/ IOT STARTUPS RECEIVE RECORD FUNDING DESPITE VENTURE CAPITAL COOL-DOWN
Investor confidence is higher than ever for the long-term prospects of companies developing products in the Internet of Things (IoT) sector, according to a study by Avnet Abacus, the pan-European distribution arm of Avnet.
IoT companies raising funds in 2022 pulled in $15.9 million, up 30% from the previous year. Avnet Abacus analyzed Crunchbase data for companies listed under IoT to provide insight on the level of investment activity happening within the sector.
The study found that the average funding round for IoT startups was the highest in more than a decade and the highest ever in Europe.
increase in funds raised by IoT companies over the previous year.
The average size of funding round (or deal size) for companies in the IoT reached $15.9 million in 2022, the highest point in 19 years. Matching the global trend, American startups in the sector also saw the highest average deal size in 19 years at $16.2 million.
Meanwhile, European IoT companies drew in their highest average funding round ever at $16.7 million.