London is the European capital for IoT start-ups
London is the European capital for IoT start-ups
London is the European capital for IoT start-ups

London is the European capital for IoT start-ups

Report places capital top of the European charts for starting an IoT business, report finds

London hosts the largest number of Internet of Things start-ups in Europe, according to a new report.

The report, titled Startups: The New Kings On The IoT Block, found that the capital was home to eight percent of IoT start-ups in Europe. Barcelona and Amsterdam came in at six percent each, while Berlin (five percent) and Tel Aviv (four percent) came next.

While London was top European city for these start-ups, it was Italy that took the honours for the top country with 11 percent of IoT start-up firms in that nation. The UK came next with ten percent, tying with Germany and the Netherlands. Spain came in at nine percent.

“What’s interesting about this data is the fact that none of the accelerator programs are based in Italy–eliminating potential local bias,” said the report’s authors.

“However, it’s important to mention possible external factors that could influence this:  Arduino, the open-source computer hardware and software company, was founded in Italy and could have inspired the hardware-maker movement within the region.”

The data came from analysis of over 500 start-ups wanting to join three different Startupbootcamp programmes between 2014 and 2015. While all the programmes have an industry focus, when it came to IoT start-ups, it was possible for start-ups to be eligible to apply to a number of Startupbootcamp programmes.

The report said that IoT industry is estimated to be worth over trillion dollars while the combined total funding of the world’s top IoT start-ups is reported to have exceeded $6.19 billion (£4.4 billion) in October 2015.

The report also discovered that the average team size of the start-up companies it analysed was 5.4 members, of which just over 60 percent were engineers.

The report comes as Startupbootcamp launched its new Startupbootcamp IoT | Connected Devices, a dedicated Internet of Things program that will provide start-ups with guidance and access to mentors, partners and investors.

Applications are now open to companies from across the world, with ten start-ups chosen to join the three-month program which begins in September. Successful start-ups will each receive €15,000 and work at the brand new 70,000 sq ft. Cocoon Networks lab in London.

Also read: The 10 hottest Internet of Things start-ups to watch in 2016

Solving IoT challenges

The accelerator is led by Raph Crouan. He said that over the past 18 months he and his team have worked closely with a number of small and large companies in this space across the globe, “and in that time it has become apparent that a dedicated IoT accelerator is needed to help foster the incredible talent we have in Europe, and throughout the world.”

“We want to help these entrepreneurs solve their unique IoT challenges, whilst giving them the perfect platform from which to take their business to the next level.”

With London and the UK set to benefit from greater investment in IoT, Colin Bull, principal consultant of manufacturing and product development at software quality testing specialist at SQS, told Internet of Business that all sectors would stand to benefit from Internet of Things development, automotive and manufacturing more than others.

“Led in part by a shift in consumer expectation, IoT has bought with it the idea of mass customisation – the mass production of individually customised goods and services, which could include anything from cars to trainers. When done right, IoT provides companies with a strategic advantage in economic value,” he said.

Also read: Internet of Things start-up funding on the rise