Israeli entrepreneurs master some of the core competencies that are key for IoT, such as big data and predictive analytics that are critical in order to make sense of a huge amount of signals generated and gathered from multiple connected devices.” He states that “the Israeli tech ecosystem has evolved in terms development lifecycle, form-factor and cost from the traditional defense industry through medical devices and now to cheaper and smaller connected devices’ technologies. I’ve discussed this trend in Israeli tech with him and he as well takes note of the transition that is taking place. When you combine this with the know-how of Israeli entrepreneurs in areas like machine learning, data mining and predictive analytics which is ingrained in Israelis when serving the army, the potential is there for the creation of some big IoT companies.Īll the trials and triumphs of building a business – delivered to your inbox.Īnother person who has been following this trend is Yair Snir, Director of M&A and Business Development at Microsoft, which has been the most active acquirer of Israeli startups in 2015. Dubin mentioned to me that the strength of Israel in industries like cyber security, agriculture and healthcare plays a major role in this. The study reaffirms the notion that Israeli entrepreneurs are a great fit for developing IoT solutions across verticals, ranging from applications to platforms and components. Aaron has been taking a deep dive into the IoT space in Israeli tech, which resulted in a landscape study on the space, listing all the startups on one single map according to their focus, funding stage and vertical.

Given the infancy of the space, this is big news as it’s indicative of the new wave of Israeli innovation.ĭuring my recent trip to Israel I had a chance to meet with Aaron Dubin who is a member of the investment team at Innovation Endeavors in Tel-Aviv. In fact, one of every 20 startups in Israel in 2015 is IoT focused. These companies range from seed stage all the way to revenue growth. According to a recent study by Innovation Endeavors, a Silicon Valley and Tel Aviv early-stage venture-capital firm solely backed by Google Executive Chairman Eric Schmidt, there are 330 IoT startups operating in Israel in 2015 across five verticals and 23 sub-verticals. Sounds complicated? Apparently not so much for Israeli entrepreneurs. This number does not include PCs, tablets and smartphones which makes it even more powerful. A report by McKinsey & Company reveals that IoT will encompass between 20 to 30 billion connected devices by 2020. According to CB Insights, Funding for IoT startups has grown steadily, more than doubling in 5 years from $768M in 2010 to over $1.9B in 2014, while 2015 is on track to surpass last year's record-breaking funding to IoT startups.

The IoT revolution is here to stay.Īll this fuels the growing appetite of investors who are pouring money into IoT startups. Today, using a Fitbit bracelet, a Nest smart thermostat, or the Apple watch - is becoming a standard, not the exception. The growing adoption by consumers, enterprises and governments is helping create smarter and more intelligent homes, smarter cities, better healthcare, more robust agricultural systems and so much more. The growth of the Internet of Things (IoT) industry has been one of the biggest trends in tech in recent years and especially during 2015, where new innovation is disrupting traditional industries across the board.

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