Treasure Hunt!

April 9th, 2014 — hermione

Happy World IOT day!

Suddenly, the world of hardware is beginning to look an awful lot like the software industry of a decade ago. New start-ups, new development techniques, whole new business models are emerging and the result is an amazing new market.

Our friends at O’Reilly share a our fascination with how these ideas are being turned into products, into businesses, that will change the way we live. They are producing Solid (21-22 May, San Francisco, CA), to demonstrate how the technology and market  is changing and how entrepreneurs can thrive in the new world.

Over the next few days we will be running a prize draw on Twitter that allows you to win a registration for both Solid and our Internet of Things Forum in Cambridge (April 15th) (or the video output if you can’t make it). To enter, simply use the hashtags #IoT14 and #oreillysolid in one tweet and we will add your name to the draw. Winner to be announced on Saturday 12th April on this site and on twitter.

Big Data & The Internet of Things. Notes from CEO Tales, April 2nd

April 3rd, 2014 — hermione

Great discussion last night with a spirited defense of the much maligned Internet Fridge, and the shock revelation that Evrythng are planning an IPO in the next five years ;-).

Many thanks to our panel: Wolfgang Emmerich (Zuhlke Engineering), Niall Murphy (Evrythng), Andy Yeoman (Concirrus) and Giles Pavey (DunnHumby).

Here are our notes from the main discussion.

Is the money in the internet or the things?

AY: neither, it’s in the business process.

NM:  It’s in the data, stupid! IoT drives more traffic, but it’s the data that starts the process of value creation. But do businesses have the competencies to extract that value?

GP: IoT does apply to how businesses are run (operational efficiency) but also to customers, which is where Giles’ expertise is. Is it as simple as how can the internet and big data put buyers and sellers together more efficiently. If you can do that, everyone wins

WE: the IoT is networking everyday things. Camden BC has network enabled lampposts, which might bring about efficiency improvements for Camden council but is not intrinsically that valuable. The money will come from the insights that the data offers.

ML: IOT lamp posts are interesting – useful for working out what is going on in a micro environment. Connecting street lights is more about controlling brightness at different times of day, changing power as new types of lights are installed etc and that all leads to power savings. Of course, they are a lot more interesting than say, internet fridges…

AY: why aren’t Internet fridges exciting? I can’t conceive why my fridge might order milk. But it can be helpful if they adjust their power cycle to turn off compressors when grid demand is high – when the ad break comes on in coronation street for example. (ML:  but how does that benefit flow back from the power company back to the consumer?). One of the things that might characterise the IoT is the constant reuse of data by a number of different parties, the business models for that are being worked out right now so I wouldn’t rule it out.

NM: we tend to think of the IoT in these big utility scale models because the benefits are large and obvious but what’s fascinating is the small puddles of data that are beginning to generate value , for example real time pricing for media rental. When you introduce IoT into consumer items it could completely change the business model, you might subscribe for a supply of baked beans and the model then becomes the bean manufacturer acquiring the sale for the retailer, rather than the retailer acquiring the sale for the manufacturer.

GP: People want three things, broadly in terms of what big data can provide 1) make life more convenient, anticipate what I’m going to do 2) predict and suggest new things that I might enjoy, give me some recommendations 3) protect me – warn me if this things has nuts in it, don’t buy this this week it’s on promotion next week.

In this country a third of all food that get s bought is thrown away. A system that allows you to know what food you’ve got is valuable to the planet as well as customers – eg fridge.

Customers also want inspiration, they’d like to know if they have five out of six ingredients for paella for example. But there are lots of problems before you can get the IoT fridge to work. Not least how does it know what’s in it.

WE: People seem to be challenging the idea of what it is you can do with the connected fridge. This is the wrong way of thinking about it. The original designers of internet protocols had no ideas what they would be used for. Its the same with Big Data, its’ about finding out patterns and information in your data that you didn’t know existed. Big Data could enable innovative business models that don’t exist now but we can’t imagine at the moment.

NM: yes, this is a crucial point – Metcalf’s law says the value of the network accelerates exponentially with each node that is connected with it. So one of the problems we have today is that there are isolated closed loop environments eg Nike Fuelband has a closed system while Jawbone Up, which has an open API and a thriving developer ecosystem. So there is a big challenge for organisations to think about their connected products as nodes on a larger network and to figure out how to share their data, legally and technically, so that the creativity of the internet can be unleashed on them.

What will be the thing that people will be talking about when they talk about the IOT in five years time?

NM: They’ll be talking about the IPO of my company Evrythng

AY: the IOT offers potential to democratise many services, for example home security that is tied to hardware with hard wired alert systems. So you can decide what constitutes an alert, as the price of hardware declines and a more personal set of rules about what it is used for can apply. The insurance industry might have some interesting discussions as it starts to disaggregate.

NM: in five years its still relatively soon and there’s a lot of social transformation in mobile adoption left to shake out from 2010. I think people will be talking about creepiness, as there becomes an extreme rise in personalised data, it can be a bit wierd where you turn up to do something and the thing already knows who you are that can be a bit wierd

GP: agreed. The psychology part of this is as important and ripe for change as the technology part. The idea of what ‘consumers want’ is no longer helpful as different people want different things so the market fragments. It will be really interesting to see what happens in the discussion between people who really want every connected and those who don’t and who the politicians want to back is an interesting question

WE: I think people will think ‘what a stupid term’ that a few terabytes of data is not that big and it’s not the size of the data that is the issue, it’s how to generate the question.

ML: how much is the M2M space moving toward IoT?

WE: well M2M is moving away from the proprietary protocols that have plagued it for many years and it will now be more integrated with mainstream IoT 

Why is Nest worth 3 billion? A lot of people have asked this one.

NM: Tony Fadell is an awesome product developer – it’s an expensive acqui hire

AY: a thermostat can tell you some interesting things about occupancy, energy consumption, holiday patterns etc. These are data streams that Google hasn’t had before and might be very valuable to them

GP: I don’t have an informed opinion on Nest, but I do think that cars will take us all by surprise. Once cars start talking to each other and deciding on the best routes the non linear effects could be substantial so the acquisition of Waze, particularly if it gets together with self driving cars.

Audience: there are wireless chips inside the Nest, an obvious platform for a whole home system

Aud 2: this is a big signal from Google about their serious intentions in IoT

Aud 3: Nest was a Google Ventures investment and Google have also invested in Calico, in the home space, so there are obvious synergies there

Aud 4: It took 20 years for the internet to get to the point where those concerns about security and privacy became widespread. When will this become a serious issue for the IOT?

WE: it won’t be very long. Partly because we have had the experience with the internet, so security concerns are on people’s minds.There are going to have to be failsafes and security devices built into these systems from the ground up, and unfortunately the data is not going to be so obvious as it when defending a website from attack can also be found by applying analytics again. For example people hack your smart meter to find out that the power has gone out

NM: I don’t think there is a tipping point about this. There is no consumer hysteria around penetration and the internet of things. IN Europe there is about 90% penetration of incredibly insecure home networks. But there is a tipping point as product manufacturers have increasing exposure to their customers the customers are learning which brand they see as most trustworthy.

In the UK consumers were more willing to check in with their Facebook registrations than they were to create new identities for sharing NHS data

GP: I work mainly in food. The food industry, food retail in America is very similar except for GM foods, you’d find it difficult to find it here but it’s opposite in the US. That’s nothing to do with science, it’s about social mechanics and lobbying working in a slightly different way. So there’s a possibility that this could switch quite rapidly for poorly understood reasons.

AY: and it’s also a generational thing, black box data for car insurance illustrates that 18 year olds are very comfortable sharing their data for financial gain.

Audience 5: beyond geolocation, Google glass etc, do you see a market for an internet of people? Geolocating people?

NM: we have one today – everyone’s phones are tags, they are a proxy for people’s location. We are focused on products but also on mapping the interaction of people and products and there’s a lot of value in that.

GP: people being connected together? Yes, we’re foreseeing a rise in people power: telling businesses what to do. Buyers clubs etc. We did some work on reviews recently comparing products with online reviews. If you have products with no reviews playing products with one star review the one star review will sell more

WE: I think we will see a convergence between social media and data connected in the IOT that will create some real valuable propositions. WE uses Strava for his cycling: convergence between data connected on the IoT and people.

Audience 7: Practical question: tell me about a real practical IoT business that a consumer can buy that has benefit.

Audience 8: I went to the school computer awareness evening which was scary. Are we going to see a reaction against the loss of privacy or is this just going to become the norm?

WE: so the first question really was, isn’t it a stupid thing to do, to put the fridge at the centre of the house? Well, yes, there were plenty of stypid dot.com ideas that came in the early days of the internet but I firmly believe there is value in connecting everyday things and using protocols to get them to exchange data

NM: I was looking at an awesome medical application last week which involved an ophthalmologist diagnosing eye conditions off grid in Kenya using smart phone. So we shouldn’t assume that IOT gains are only going to be seen in the developed world. On the privacy front, the creepiness factor is going to be variable for people and needs sorting out, the challenge is to provide applications that have real value for the people whose data it is.

GP: Disappointed we didn’t have the fridge spam joke. Yes fridges could be hackable, but so are your PCs, and life goes on. I think the big companies will have to respect people’s privacy: they can’t afford a PR backlash.

AY: Something else that is changing is that everything else gets more difficult, so for example the traffic patterns in London are getting worse and these technologies will be forced upon us to maintain the status quo: to allow the aging population to stay in their home. In terms of big data I’m cynical about big data because knowledge is not enough: you need to induce new behaviour.

ML: OK, so we’re going to have to wrap up there and continue the conversation in the networking. Thank you all for coming and thank you in the audience for some very thought provoking questions. Huge thanks to our supporters, Zuhlke Engineering and Taylor Wessing for making the CEO Tales happen.

Don’t forget, the Internet of things Forum, a one day event to bring investors, corporate customers, entrepreneurs and the people that are making the Internet of Things a reality is on April 15th, Robinson College, Cambridge, 2014. A few tickets still available but likely to sell out by end of next week. Worth your time or your money back.


 

Congratulations to the Ones to Watch at IoT14!

April 2nd, 2014 — hermione

We knew from last year that there are many great businesses emerging in the IoT space and this year’s showcase entries proved the point. The quality was tremendous and we have been able to select companies from a range of verticals and business models.

So congratulations to our shortlist for the 15th April:

  • Alleantia
  • Arkessa
  • Red Gate
  • SigFox
  • Moixa
  • Flexeye
  • Ciseco
  • iobridge
  • NWave Technologies Ltd
  • Xsilon
  • Liveguard Ltd
  • SmartNotify
  • Friendly Technologies Ltd

The companies on this list are at all stages of the lifecycle but all have great potential to drive the IoT forward. We are looking forward to hearing what they have to say in their five minute slot on the day. We are also working out how we can get some of the other applicants air time on the day. Watch this space.

To hear from each of the companies about their businesses, their aspirations and their needs, sign up for IoT13 here. Or if you want to know more about IoT14 – including all the other speakers, the sessions etc, there is much more detail on the IoT Forum site here.

Delegate list for CEO Tales, 2nd April: IoT and Big Data

April 1st, 2014 — hermione

Delegates registered for our CEO Tales as of 5pm this afternoon:

Oliver Robinson Director at WPL
Sam Manning Director at WPL
Justin Cowling Business Development Director at Zuhlke
Wolfgang Emmerich CEO & Chairman at Zuhlke
Tim Cianchi Business Unit Leader at Zuhlke
Ozan Asim Equity Research Associate at Fidelity Investments
Emi Gibson Operations at The BLN
Christiane Pearl The BLN
Will Franks CEO at Telensa
Max Bautin Managing Partner at IQ Capital
Giles Pavey Chief Data Scientist at Dunnhumby
Tina de Souza Founder at Moskardo
Hassan Kanj Hult International Business School
Volland Julia Marketing at Zuhlke
Laura Stucki Head of Innovation at Regus
Joss Langford Director at Coelition
Hermione Crease Marketing Manager at The BLN1
Jon Lewis Chief Innovation Officer at Plextek
Francois Stoessel Associate at GMT Communications Partners
Navid Ostadian-Binai EMEA Business Development Director at Cogniance
Jeff Allan CEO at DRTS
Douglas Orr CEO & Co-Founder at ShopChat
Dele Atanda CEO at Digitteria
Angela McKane Information Capability at BP
Peter Cowley Investment Director at Martlet Ventures
Deb Schwarz CEO at LAC Group
George Sunil Equity Research Analyst at Fidelity Investments
Camilla Dolan Investment Manager at MMC Ventures
Rob Corraro COO at LAC Group
Mike Kennedy partner at Restoration Partners
Andrew Carroll CEO at Paperless Receipts
Gregory Roekens CTO at AMV BBDO
Anna Jennett Associate at Silicon Valley Bank
Jonathan Wiggins CEO at NWave Technologies
Inmaculada Martinez CEO at SWOON MEDIA
Neil Robertson Senior Associate at Fieldhouse Associates
Adrian Lloyd Partner at Episode 1 Ventures
Tim McSweeney Principal at Restoration Partners
James Cameron Associate at Accel
Mike Hogg Business Unit Leader for Embedded Systems at Zuhlke
Elias El Khoury MBA with Business Intelligence and Software Engine at Hult International Business School
Colin Nunn Concirrus
Robert Elding Usio at MD
Michael Quirke Head of Marketing at Concrete Group
Paul Sofronoff Principle Strategic Innovation at Suncorp
Christine Brennan Principle Strategic Innovation at Suncorp
Mike Fish CEO at BigData4Analytics
Thor List Product Manager at World Programming
Vinod Bange Partner at Taylor Wessing
Daniel Rothig Red Gate Software
Juan Lopez-Valcarcel Chief Digital Officer at Pearson
Julie Catanach EM Learning at Suncorp
Marty Weatherhead Head of Suncorp Insurance at Suncorp
Cameron Hulett MD – EMEA at Undertone
Ravi Bhatt Associate at Anthemis
Drew Thomson CEO at Starcount
John McConnell Director at Analytical People
Dhruv Haria Founder, CEO at Barracuro
David Eveleigh-Evans Managing Director at Method
Steve Freeman Distinguished Consultant at Zuhlke
Stephen Kellett Founder at Software Verification
Keith Braithwaite Business Unit Leader for Centre for Agile Practices at Zuhlke
Chris Joyce Lead Consultant at Zuhlke
Francesco Cara Director, Experience Strategy at SapientNitro
Julia Giannini Junior Partner at Carnstone Parners
Chris Gare Director at Gare Ventures
Patrick Newbery Chief Strategy Officer at Method
Alexander Mikhalev Technical Director at Shopitize
Steve Gardner CEO at RowAnalytics Ltd
Rowan Gardner Chief Commercial Officer at RowAnalytics Ltd
Yann Anthemis Investment Director at Anthemis
Dave Gelb Statistician at Takeda
Greg Lamond Partner at Bean Partners
Scott Law Director at SJP Search
Lisa Addison Head of Sales at Contego
Matthew Baxter Owner at The Platform
Adam Bastin Director of Corporate Development at ARM
Adrian Burgess BIM Specialist at ECS
Correy Voo CTO: Platform Services & Applied Innovation at UBS
Johan Orneblad Innovation lawyer at Origin Ltd.
Nichola Kirkman Marketing & Digital Content Manager at Evrythng
Amir Shadmand Co-Founder at Supenta
Jim Sterne President at Rising Media, Inc.
Jane Orme Corporate Finance Analyst at Realise Capital Partners
Liely Bullock Interaction Management at Qwasi
Peter Langley CEO at Origin
Roman Jurowetzki PhD Student at Aalborg University
Ari Helgason World on a Hanger
Brewster Barclay Business Development Director at Zuhlke
Dean Forbes Founder at Brand Dean
Ave Wrigley CTO at TagMan
Edward Drax Director at Paperless Receipts
Daniel Waterhouse Partner at Balderton Capital
George Mackintosh CEO at Testplant
Guy Mucklow CEO at Postcode Anywhere (Europe)
Howard Palmer Partner at Taylor Wessing
Mark Littlewood Director at The Business Leaders Network
Paul Gillespie Partner at Gillamor Stephens
Ian Finch Managing Director at Mando Group
James Brocket Managing Partner at Calibre One
Joachim Steiner Managing Director, NoctuSense
Andrey Kessel Managing Director at ATZ Management
Colin Smithers Founder at Redtail Telematics
Julie Curran Partner at Scottish Equity Partners
Anish Mohammed Chief Strategy Officer at Singularity
Lucia Rigo VP at General Atlantic
Chris Curry Director at General Information Systems
David Rajan CIO at Method
Martin Jackson Group Head of Technology at Elektron Technology
Madhuban Kumar CEO at Metafused
Richard Marsh Partner at DFJ Esprit
Sam Michel Founder & MD at Chinwag
Tim Ellis Partner at FirstPartner
Tristan Rogers CEO at Concrete Group

 

Not too late to join us if you want to. Register here.

Hell yes! This! Thought leadership & every corporate video you have ever seen

March 27th, 2014 — Mark Littlewood

If I had 10 pence for every stupid approach from a marketing agency or big corporate who wanted to grace an event we were running with one of their corporate executives who wanted to,

“Share a thought leadership piece with our audience at, what was your event called again?”

I would have made 70 pence this week.

We don’t run events for big companies to come and pay their way onto a stage and then share videos like this because their views are usually incredibly boring. We want our events to be filled with great people who are actually doing stuff, not looking at an audience of people as a way to sell their existing chip solutions, router solutions, engineering solutions, security solutions, platform solutions, consulting solutions, finance solutions and then feed them stuff that is totally indistinguishable from any other corporate presentation that has to contain at least one video like this which we think is brilliant.

We love this.

In all honesty, it is virtually indistinguishable from a video that we got sent from a PR agency in New York last night.


 

Should the Internet of Things be invisible?

March 21st, 2014 — hermione

I just had a little Q&A session with Tim Taberner at Eurotech and he said something unexpected: that the internet of things should become invisible to consumers. Of course the results will enrich people’s lives, but the system driving those results will remain mysterious.

More than that: many of the benefits aren’t accruing directly to consumers. We finished last year’s IoT forum with a panel on new business models in IoT, and one of the interesting points is how much of the value realised in the IoT right now is effectively invisible to end users – from process improvements to sustainability to deeper understanding from product data.

See the panel (with Stan Boland (Neul), Andy Hobsbawm (Evrythng) and Rob Treloar (Unilever))  here – sound quality is a little low, we had some issues with the microphones at the end of the day, but stick with it for some great insights into the competitive landscape of IoT.

And thanks to Tim Taberner for some great insights from one of the most established players in Internet of Things

1. Which markets are you most excited about? If you were starting again, which segment of the IoT market would you focus on?

Eurotech offer a truly cross market platform, and so we’re equally excited about all sectors. The difficult thing for companies coming from a long legacy in M2M, like Eurotech, is realising how much of the IoT landscape falls outside what we think of as M2M, and we’re constantly challenging ourselves to reach beyond our traditional markets.

2. What do you see as the biggest obstacles to widespread IoT use?

The main obstacles are not technological, or even really about price points, they are much more to do with the way projects are conceived and funded. It is still true that most projects are created to sole a point in time monitoring problem around a particular process with a single stakeholder funding the process. This silo funding almost inevitably leads to silo implementations. In an IoT world, many of the benefits of the systems will accrue to departments, organisations or individuals who are not directly part of the funding body, and new business model need to be found to overcome this.

3. Do you think the Internet of Things will ever become a well understood concept for consumers?

I think it will become invisible to consumers. The full concept of the internet is not really well understood by most users of it, and the same will be true with the internet of things. Consumers will see the benefit through new services and applications which will enrich their lives, but I don’t think that they will think about the technology that is underpinning it.

4. For 2014, where do you think we will see the greatest growth in the IoT?

The landscape is still very dynamic, but certainly there seem to be some very interesting initiatives in the transportation sector. Whether these will translate to volume during 2014 is still open to question, but certainly I think that transportation will be one of the early and important drivers of the technology.

5. How do your customers use the IoT to make money? Are you seeing any changes in this?

I think that this is still the biggest question for the industry. There are a number of different models being used, and at the moment I don’t think that there is any single model that is becoming dominant. Some customers see IoT technology as a way to decrease their time to market for what would otherwise be a silo system. Some are using the technology to optimise entire ecosystems rather than individual process, and gaining from the savings made. Others are developing new services and offering these directly to clients.

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Business model innovation – the best kept secret in IoT?

March 19th, 2014 — hermione

For various reasons I was revisiting Alex Osterwalder’s excellent talk from BoS2011 about Business Model innovation. It’s a great talk on a great topic: using a new business model is often overlooked as a way to produce some competitive advantage but can work brilliantly, as Alex explains:

And never more so than when combined with the expansion of new technical tools and processes. Step forward the IoT. Here’s a brief clip of Dr Karolin Frankenberger, from the St Gallen Business Model Innovation Lab (by the way, all the best work on business models seems to be done in Switzerland, it seems to be a national specialty) talking about some of the radical new business models that IoT enables

If you want to spend a bit more time thinking about your business and how to monetise it, the St Gallen team have thoughtfully published an extensive guide to their research in Business Models. It’s a fairly academic, but very thought provoking read, and if you don’t come out of it with at least three new business ideas, you’re not the entrepreneur I thought you were.

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Business of Software UK and US – your questions answered

March 18th, 2014 — hermione

Along with lots of lovely messages after we announced BoS UK, we also got quite a few questions. No surprise there, but we thought we’d share our answers to the most common ones. Please do keep sending us your questions, we’re really grateful for all the insight you’ve been sharing with us.

Are there discounts for attending both conferences?

Yes. We are offering individual attendees a 20% discount on the current rate for the second conference if they would like to attend both events. We will send you a discount code on registration. Please note that this is specific to an individual, not a company.

Will attendance at the Boston event be affected by running a conference in Europe too?

We don’t think it will be a significant issue. Attendance at BoS Boston is limited to 400 people and we fill it every year. We consciously restrict the number of attendees to maximize the value of the networking and the ‘feel’ of the event because we want people to be able to meet and spend time with the speakers and other attendees and talk about their business issues. When too many people are in the room, we believe this becomes much harder and thus less valuable to the attendees.

Will BoS UK be the same as BoS US?

The two events will be different – both because there will be very little cross over of speakers, but because they are slightly different in nature.

Business of Software Conference US (BoS US) is well established, runs for two and a half days and is held in one of the leading business hotels and venues in the US in our opinion. It is a truly global event with participants coming from all round the world.

Business of Software Conference Europe (BoS UK) We are running BoS UK, partly because there is such an interest in Europeans attending BoS US but it is not always possible to get over every year to the Boston event and partly because the European software scene has some features that are different from the US experience.

We want to spread the BoS community further and try to run an event which has the same sense of community and collaboration but the where the total cost of attendance is lower for Europeans and indeed attendees from the US. For this reaon, it is being held at Cambridge College with purpose built conference facilities, an intimate auditorium and low cost accommodation. Cambridge is half an hour or so from Stansted and Luton Airports which makes getting there relatively simple from mainland Europe.

Will there be the same speakers?

No. While some speakers at BoS UK will have spoken at BoS US in the past, we want to try to keep speakers and talks fresh and different. We do not intend to have a speaker speaking at both events in the same year except in exceptional circumstances.

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Who is funding the Internet of Things – interesting perspective in GigaOm on IoT

March 3rd, 2014 — Mark Littlewood

Interesting article by Alicia Asin at Libelium in GigaOm about funding for the Internet of Things. Alicia suggests there are three main sources of funding for IoT companies:  Public, Public/Private Partnerships, Crowdfunding. It is a fair overview in many respects but I believe the article (and some of the comments) dismisses, unfairly, the impact of venture capital from dedicated venture funds AND indeed corporate ventures on the long term strength of the sector.

Each of the three funding sources that Alicia identifies has a place.

  • Public Funding: from e.g. EU, has put money into a lot of academic and industrial collaboration projects though many of these are a very long way off getting to a point where they will have any meaningful impact on commercial activities.
  • Public/Private Partnerships: i.e. Large companies working in partnership with e.g. where a city invests in a ‘Smart City’ or ‘Smart Transportation’ project that is usually delivered a a trial project with a view to rolling something bigger out should the trial be a success. In my view, the funding for these projects however is still coming from the public sector so should really count at ‘Public Funding’. there aren’t too many companies that can afford to invest in this type of project, not should they, unless they can see a clear ROI. Most private companies will be reluctant to do this given the noise around these projects at the moment.
  • Crowdfunding: Funding the development of a product or project using crowdfunding. A rapidly emerging source of funding and the news this week that Kickstarter has funded over $1 billion of projects in its life is validation that the model can work. HOWEVER, typically, this type of funding is most appropriate for smaller projects rather than raising significant funding to support the growth of a business. The vast majority of crowdfunded projects are for significantly less than<£50k.

$1 billion of Kickstarter Fundraising by funding level

So where is ‘venture capital’ in all its forms in this discussion?

Well, it is probably not going to have much of an impact on the types of projects that are either publicly funded or crowdsourced? Why, very simple, neither option is likely to be seen as being evidence that the type of project that takes those types of money will be a commercial success that offers an investor a return on their capital. Investors, both independent and corporate, will want to fund projects that offer a return on the money they invest (though there are some corporate funds that have another purpose i.e. helping their organisation learn about the IoT).

So where is the venture investment and how can we as an industry unlock the money? Actually, there is already a lot of money invested by venture funds into the sector. Intel Capital, as investors in e.g. SigFox, IQ Capital, as investors in e.g. Neul, DFJ Esprit, as investors in e.g. Greenpeak, Index, as investors in e.g. AlertMe), Amadeus Seed, are just some of the examples of active funds investing in the space.

All of these funds have something in common I think. They are investing in BUSINESSES, not projects, with an expectation of getting a financial return. They would probably regard public funds as, ‘soft’ – though they would never suggest to a company that they invested in that they should turn that money down. They would probably regard crowdfunded projects favourably if the crowdfunding received enough interest to actually be able to do something that moves the business behind it forward (i.e. they are using the crowdfunding as evidence of market demand). The flipside of a small amount of crowdfunding money raised by a company though could be taken by some investors as evidence that the entrepreneur is not being ambitious enough. Investors have a lot of deals to choose from. All their investment involve risk and they have to invest in projects that can show significant returns.

One of the most important things that we have to do as an industry at the moment, is understand very clearly what different investors – angels, venture firms, corporate investors want from a deal and understand the dynamics of the investor businesses if they are to attract equity funding of this type.

Some people, not unreasonably, want to know just one thing. This is a good 1 minute overview of ho you should frame a conversation with a professional investor.

The good news that we see is that serial entrepreneurs, who have attracted venture funding in the past for one or more companies, and who have achieved one or more exits for their investors are getting more involved in the sector. Niall Murphy, founder of The Cloud and Evrythng and Stan Boland, Founder of Element 14 and Icera before becoming CEO of Neul are but two examples and we know of a lot more that are working in the space under the radar at the moment. These entrepreneurs have made money for investors in the past and understand the language they speak as well as what investors need to see in a company they invest in.

This is one of the big topics that we will be considering at the next IoT Forum, April 15th 2014 where we have two discussion sessions: one focused on serial entrepreneurs and what they believe companies need to do to become successful in the market and; one on investors and what they are actually looking for. You would of course be mad not to be there.


 

What you should buy for the ultimate IoT hackday? (Or indeed hack week).

February 26th, 2014 — Mark Littlewood

If you are making/selling ‘stuff’ that would be  interesting to IoT hackers get in touch with Red Gate Software, quick!

They run a quarterly ‘Down Tools Week’ where people are encouraged to look at new things and consider their implications for the business and indeed the business opportunities that new things might create. They have an interesting track record of delivering fledgling businesses out of the process though the primary intent is to make educate their people about new technologies.

Their IoT focused ‘Down Tools Week’ is next week and Mark Cheverton who is running the programme has bought a tonne of cool kit to play but he is open to having more. (In fact, here he is salivating over the kit he has purchased already though you will notice the Red Gate IoT Credit Card is in his hand).

Red Gate Hack Week IoT Credit Card

There is a fairly comprehensive list of the things that he has purchased so far.

More important, if there is anything that you would suggest, (or indeed make yourself), get in touch with Mark quick as he wants to hear from you, purchase some stuff and offer some feedback on what they did with it. Mark is Ennui2342 on Twitter.

Hopefully, they will bring some of their projects along to the IoT Forum on 15th April and show us what they learned.


 

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