kbs+ Ventures Fellows #5: Special Report - Internet of Things

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FELLOWS CLASS #5: SPECIAL REPORT - INTERNET OF THINGSDECEMBER 18TH, 2014

Thursday, December 18, 14

• LAST WEEK’S READING / VIDEO• HOMEWORK ASSIGNMENT #3: QUESTIONS• INTRODUCTION TO THE INTERNET OF THINGS• REAL WORLD PERSPECTIVE: KATE STONE, FOUNDER OF NOVALIA• QUESTIONS

IN TODAY’S CLASS...2


A DAY MADE OF GLASS3

https://www.youtube.com/watch?v=MHqrrki47ec

LET’S START WITH A LITTLE IMAGINATION....




FELLOWS SPECIAL REPORT:4


WHAT IS IT?5

EVERYDAY, PHYSICAL DEVICES AUTOMATICALLY EXCHANGING INFORMATION OVER A NETWORK


PHYSICAL OBJECTS ARE COMING TO LIFE:6


WHAT ELSE CAN BE CONNECTED?7

FITNESSCONNECTED HOME

HEALTHCARE

CONNECTED CAR

RETAIL

WEARABLES


IOT ENABLERS8

1. CHEAP BANDWIDTH ---> 40X CHEAPER OVER THE PAST DECADE

2. CHEAP PROCESSING ---> DECLINED 60X OVER THE PAST DECADE

4. LOW COST SENSORS ---> AVERAGE COST IS NOW $0.60

5. SMARTPHONES ---> THE GATEWAY FOR IOT

6. CONSUMER RECEPTIVITY ---> DIGITAL CURIOSITY

http://www.slideshare.net/accavdar/iot-and-google?qid=2d825122-ff42-48f0-a5ff-07cd728c7b59&v=default&b=&from_search=8

3. IPV6 ---> ACCOMMODATING BILLIONS MORE CONNECTED DEVICES (IP ADDRESSES)




HOW BIG IS THE MARKET?9

BY 2020....

75 BILLION CONNECTED DEVICES?




...A $7.1

TRILLION

MARKET?

http://www.zdnet.com/article/internet-of-things-market-to-hit-7-1-trillion-by-2020-idc/




MAJOR PLAYERS DEDICATING RESOURCES:10


THE BIG GUYS ARE PLACING BETS11

$200MM$3.2 BILLION (NEST)$555MM (DROPCAM)

+

++


CONSUMERS ARE ONBOARD12

“THE TALK OF CES 2015”


WHAT IS HOMEKIT?13

“....WITH HOMEKIT, YOU CAN GROUP DEVICES AND CHANGE INTO SCENES, AND THEN WITH SIRI INTEGRATION YOU CAN SAY SOMETHING LIKE, “GET READY FOR BED”, AND BE SURE YOUR GARAGE DOOR IS CLOSED, YOUR

DOOR IS LOCKED, THE THERMOSTAT IS LOWERED, YOUR LIGHTS ARE DIMMED... THAT’S HOMEKIT”

- CRAIG FEDERIGHISVP OF SOFTWARE ENGINEERING, APPLE


ARE YOU A GOOGLE OR APPLE HOUSE?14

(E.G. PHILLIPS, HONEYWELL, BELKIN)

IN OCTOBER...HOMEKIT UNVEILED WITH 17 PARTNERS

(E.G. JAWBONE, WHIRLPOOL, LIFX)

IN JUNE...THE NEST LEARNING THERMOSTAT


TITLE / HEADER15

DEDICATING RETAIL SPACE TO INVEST IN THE FUTURE

• DEDICATED SECTIONS IN 400 OF THEIR 1,050 STORES• USING ~850 SQUARE FOOT AREAS• SHOWCASING 100+ CONNECTED HOME PRODUCTS

INVESTING IN SMART PRODUCTS


A GROWING MARKET16

https://www.cbinsights.com/blog/internet-of-things-investing-snapshot/

•2013 - $1.1B IN VENTURE CAPITAL FUNDING ACROSS 153 DEALS•2014 - PROJECTING $1.6B+ IN VENTURE CAPITAL FUNDING




MOST DEALS ARE SEED AND SERIES A17





13 INTERNET OF THINGS STARTUPS IN 2013...

STARTUPS ARE COMING...18

189 INTERNET OF THINGS STARTUPS IN 2014...

http://articles.economictimes.indiatimes.com/2014-10-15/news/55059521_1_iot-devices-internet




REAL WORLD PERSPECTIVE19

KATE STONE• FOUNDER AND CEO - NOVALIA• CAMBRIDGE BASED• 36 PATENT APPLICATIONS, 15 GRANTED• PHD IN PHYSICS FROM CAMBRIDGE

STARTUP SPOTLIGHT!

“THE FUTURE WILL LOOK MORE LIKE THE PAST...”


• JANUARY 8TH - RAISING CAPITAL PART 2• ATTEND OFFICE HOURS!• SCHEDULE TIME WITH VENTURES TEAM TO REVIEW HOMEWORK• HOMEWORK ASSIGNMENT #3: DUE JANUARY 16TH

NEXT CLASS...20



kbs+ Ventures Fellows #5: Special Report - Internet of Things

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