For our first batch of new companies SHXv5, we wanted to look into one of the most interesting spaces for emerging technology -- the so-called “Internet of Things”.
The Internet of Things (IoT) refers to the world where all the dumb electronic devices (toasters, toilets, tamagotchis) are connected to the internet and become “smart”.
IoT first got on many people’s radars when smart thermostat company Nest got acquired by Google for $3.2B in one of the largest acquisitions of our time.
The hype train is rolling because IoT looks to be huge. Economists forecast 23 billion smart connected devices with a market cap of up to $11.1 trillion within 5 years. To provide a sense of scale -- the internet was originally designed with IPv4 protocol, which only supported 4 billion devices (thankfully we moved over to IPv6 which supports a few octillion devices).
So... does this mean that the grand vision of the future is one where your refrigerator is posting pictures of dinner to Instagram?
Not quite -- the home uses are where the average person may notice the impact, but the big use cases are expected to be in industries like utilities, retail, healthcare, energy, transportation.
So what deflates the hype? Well, there’s obviously privacy fears, but most architects of our brave new world believe privacy is long dead. There’s also security concerns. What could be worse than a themostat being hacked:
A better question is how well will the IoT actually function together? How easy is it to move from Apple’s walled garden to Google’s? If myriad companies can’t agree on open standards, then you might find your washer is constantly feuding with your dryer. There’s not really an economic incentive for anybody to resolve these issues. It’s far easier to simply have your devices remind you to buy things, just as printers evolved to become ink salesmen.
There’s one entity which could overcome petty corporate differences -- it’s entirely possible a malevolent artificial superintelligence could hack connected devices to destroy all humans.
To celebrate the Internet of Things, we’re featuring four of our favorite startups connecting the home. All are pre-launch, primarily financed through crowdfunding, and built by some of our favorite entrepreneurs in the space. If you like what they’re doing, please leave them a comment
Luna: ($LUNA) - Smart Bed Cover
Candy House: ($SESAME) - Smart House Key / Home
Switchmate: ($SWITCH) - Smart Light Switches
Luzi ($LUZI) - Smart Lamp to Improve Sleep
“The Internet of Things, Unplugged and Untethered” - MIT Technology Review
“The Internet of Things changes the Company-Customer Relationship” - Harvard Business Review
“The language of the internet of things” - The Economist
“Internet of Things 101 - What it is and what it means to chocolate lovers” - IoT Analytics
IoT Infographic - Harbor Research
