Top 15 Venture Capital Firms Investing in Internet of Things Startups

When you're building an Internet of Things (IoT) company, finding the right investors is crucial. You need partners who understand the unique challenges of connected devices and cyber-physical systems, from hardware development to data infrastructure. Knowing which IoT venture capital firms specialize in this area can make your fundraising process much more effective.

To help you identify the right people, our team has put together this overview of top technology venture capital firms. This guide gives you a quick summary of active investors in the space, whether you're looking for early-stage or late-stage partners.

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Which VC Firms in Internet of Things Are Right for Your Stage?

Whether your company is in its early stages or you're preparing for an exit, connecting with the right investors is critical. To help, we've put together a brief overview of venture capital firms that invest in Internet of Things companies, broken down by stage.

Pre-seed and Seed VC Firms in Internet of Things

Pre-seed and seed funding is the earliest capital you'll raise, designed to help you validate your idea and build an initial product. For founders of connected devices and industrial IoT startups, seed stage venture capital firms like SmartGateVC, which focuses on AI-driven frontiers, and mHUB, a hardtech innovation center, are excellent starting points, along with Tech Square Ventures.

Early Stage VC Firms in Internet of Things

Early-stage funding, typically Series A and B, is for companies with a proven product and initial market traction that need capital to scale operations and growth. Some early stage IoT venture capital firms that support this phase include Scrum Ventures, which helps startups innovate with corporations, and Bay Area venture capital firms like Script Capital and Moment Ventures.

Late Stage VC Firms in Internet of Things

Late-stage venture capital is for mature companies looking to expand significantly, enter new markets, or prepare for an acquisition or IPO. If you're approaching this phase, you might connect with late stage VC firms such as Titanium Ventures, with its portfolio of major exits, or New York-based investors like Adit Ventures and Parkway Venture Capital.

It's also worth noting that many global VC firms, including several on our list, invest across multiple stages from seed to exit.

Below, we offer a more detailed look at top VC firms in the Internet of Things sector, including their investment stages, geographic focus, and what makes each a compelling partner for founders.

1. Scout Ventures

Scout Ventures is an early-stage firm that invests in frontier technologies with the goal of creating a better, safer world. They have a specific interest in dual-use technologies that serve both commercial and government purposes.

The firm supports companies from seed through late-stage rounds, showing a commitment to backing founders for the long haul. Their portfolio includes unicorns like digital identity network ID.me and health-tech platform Unite Us.

This firm is a strong potential partner if you're building a company in a sector like robotics, cybersecurity, or IoT. Founders developing deep tech with clear applications for both private and public sectors will find their focus particularly relevant.

• Investment stages: Seed, early-stage, and late-stage venture
• Industries of focus: Internet of Things, robotics, cybersecurity, autonomous vehicles, and quantum computing
• Geographical presence: Austin, Texas
• Founded: 2010
• Portfolio snapshot: Over 125 investments and 28 exits
• Notable investments: ID.me, Unite Us, Virtuix

You can refer to their website here.

2. Amazon Alexa Fund

The Amazon Alexa Fund is a corporate venture arm with up to $200 million dedicated to advancing voice technology. It invests in companies that are building new experiences with voice at their core.

As a strategic investor, the fund's primary goal is to expand the Alexa ecosystem, making it a unique partner. Their portfolio highlights a focus on consumer-facing companies, with notable investments like smart-home device maker Ring and fintech platform Greenlight.

This fund is an ideal match if your startup is developing products in the smart home, consumer hardware, or AI software spaces. Founders who see a clear strategic alignment with Amazon's voice platform will find them to be a particularly valuable partner.

• Investment stages: Seed, early-stage, and late-stage venture
• Industries of focus: Internet of Things, AI, consumer electronics, and hardware
• Geographical presence: Seattle, Washington
• Founded: 2015
• Portfolio snapshot: Over 140 investments and 23 exits
• Notable investments: Ring, Ecobee, Greenlight

You can refer to their website here.

3. Scrum Ventures

Scrum Ventures is an early-stage firm that specializes in connecting startups with established corporations for mutual innovation. They act as a bridge, helping new companies find strategic partners for growth.

The firm’s approach is centered on creating tangible business opportunities for its portfolio companies through its corporate network. Their investments in companies like the smart-lock developer Photosynth and the B2B marketplace GrubMarket show a focus on startups that can scale with corporate collaboration.

This firm is a strong fit if your startup has a B2B model or a product that could benefit from corporate distribution channels. Founders in IoT, AI, and mobility who are looking for more than just capital will find their partnership model valuable.

• Investment stages: Seed and early-stage venture
• Industries of focus: Internet of Things, AI, mobility, digital health
• Geographical presence: San Francisco, California
• Founded: 2013
• Portfolio snapshot: Over 120 investments and 16 exits
• Notable investments: Noom, GrubMarket, May Mobility, ExaWizards

You can refer to their website here.

4. Script Capital

Script Capital is a San Francisco-based firm that invests in early-stage internet and software companies, providing seed and venture funding to help founders build their businesses.

A key feature of the firm is its track record of successful exits to major technology companies like Snapchat, Spotify, and Twitter. Their portfolio, which includes the popular creator platform Patreon, shows a focus on software with strong acquisition potential.

This firm is a great potential partner if you're an early-stage founder building a software or internet company. Their history of acquisitions suggests they are a good fit for startups that could eventually integrate with a larger tech platform.

• Investment stages: Seed and early-stage venture
• Industries of focus: Internet of Things, SaaS, FinTech, Big Data, Software
• Geographical presence: San Francisco, California
• Founded: 2016
• Portfolio snapshot: 56 investments and 9 exits
• Notable investments: Patreon, Zenly (acquired by Snap), Sqreen (acquired by Datadog)

You can refer to their website here.

5. Titanium Ventures

Titanium Ventures invests in technology companies from early to late stages, with a focus on creating additional revenue opportunities for its portfolio. The firm supports founders with capital and strategic connections designed to help them grow.

The firm is known for its impressive portfolio of high-profile exits, including the Auth0 acquisition and IPOs for companies like GitLab and DocuSign. This track record signals a clear focus on backing companies with the potential to become publicly traded market leaders.

Titanium Ventures is a good match for founders building enterprise technology with ambitions for a major acquisition or IPO. If your company operates in cloud infrastructure or cybersecurity and is on a path to significant scale, their experience is highly relevant.

• Investment stages: Early-stage and late-stage venture
• Industries of focus: Cloud Infrastructure, Cyber Security, Financial Services, Internet of Things
• Geographical presence: San Francisco, California
• Founded: 2011
• Portfolio snapshot: 137 investments and 36 exits
• Notable investments: Auth0, GitLab, CrowdStrike, Snap Inc., DocuSign

You can refer to their website here.

6. SmartGateVC

SmartGateVC is a pre-seed and seed-stage firm based in Southern California and Armenia that invests in companies working on frontiers driven by artificial intelligence. They have a distinct focus on deep tech, backing startups in specialized fields like bioinformatics, cybersecurity, and IoT.

Their portfolio highlights this technical depth, with investments in recognized AI platforms like Krisp and the multi-cloud security startup Britive. This firm is a compelling partner if you are an early-stage founder building a company with deep technical roots in AI.

• Investment stages: Seed and early-stage venture
• Industries of focus: Artificial Intelligence, Internet of Things, cybersecurity, and life sciences
• Geographical presence: Los Angeles and Armenia
• Founded: 2017
• Portfolio snapshot: 28 investments and 1 exit
• Notable investments: Krisp, SuperAnnotate, and Britive, which secured a $20.5 million Series B in 2023.

You can refer to their website here.

7. Joule Ventures

Joule Ventures operates as a first-check partner for Israeli founders bringing enterprise-grade technology to U.S. markets. The firm provides seed and early-stage capital to help these startups commercialize their solutions and gain traction.

The firm has a history of guiding portfolio companies toward high-value acquisitions by major technology corporations. Notable exits include the sale of RAN-automation platform Cellwize to Qualcomm and behavioral-biometrics firm BehavioSec to LexisNexis Risk Solutions.

Joule Ventures is an ideal partner for Israeli founders building enterprise software, particularly in sectors like cybersecurity, cloud infrastructure, and big data. If your strategy involves targeting the U.S. market with a clear path to a strategic acquisition, their expertise is highly relevant.

• Investment stages: Seed, early-stage, and late-stage venture
• Industries of focus: Big Data, Cloud Infrastructure, Cyber Security, Internet of Things, Software
• Geographical presence: New York, with a focus on Israeli founders
• Founded: 2010
• Portfolio snapshot: 41 investments and 6 exits
• Notable investments: Coralogix, Cellwize, BehavioSec, WeWork

You can refer to their website here.

8. mHUB

mHUB is a Chicago-based innovation center and venture firm that focuses on hardtech and physical product development. They provide capital and resources to help entrepreneurs turn ideas into manufactured goods.

The firm operates as an accelerator and incubator, signaling a hands-on approach that goes beyond just funding. Their portfolio includes companies in diverse sectors like med-tech (NovaXS) and industrial IoT (Sotaog), showing a focus on tangible, real-world applications.

mHUB is a great fit if you're an early-stage founder building a physical product and need access to manufacturing resources. Their model is particularly suited for startups in hardware, electronics, or IoT that can benefit from both capital and an innovation ecosystem.

• Investment stages: Seed and early-stage venture
• Industries of focus: Hardtech, manufacturing, Internet of Things, and product design
• Geographical presence: Chicago, Illinois
• Founded: 2017
• Portfolio snapshot: 45 investments
• Model: Acts as an accelerator, incubator, and venture capital investor
• Notable investments: Aerospec, NovaXS, Hyivy Health, Sotaog

You can refer to their website here.

9. Moment Ventures

Moment Ventures is an early-stage firm based in Palo Alto that invests in companies shaping the future of work. They provide seed and venture funding to founders building foundational technology in sectors like infrastructure and robotics.

The firm's portfolio reflects a clear focus on infrastructure, with investments in companies like service-robotics maker Savioke and logistics platform Flowspace. This signals an interest in startups that are automating industries and creating new efficiencies.

This firm is a good match if you are an early-stage founder building technology for industries undergoing significant change. Companies in robotics, logistics, and enterprise infrastructure will find their focus particularly relevant.

• Investment stages: Seed, early-stage, and late-stage venture
• Industries of focus: Future of work, infrastructure, Internet of Things, robotics
• Geographical presence: Palo Alto, California
• Founded: 2013
• Portfolio snapshot: 49 investments and 10 exits
• Notable investments: Savioke, Flowspace, World View, AltoIRA

You can refer to their website here.

10. Adit Ventures

Adit Ventures is a New York-based firm that invests across the company lifecycle, from early and late-stage rounds to the secondary market. They manage over $400 million in assets and focus on a range of technology sectors, including FinTech, cybersecurity, and companies in the Internet of Things space.

A key characteristic of the firm is its portfolio of high-profile private companies like SpaceX, Flexport, and Dataminr. This focus on established unicorns suggests an emphasis on backing proven market leaders with significant growth potential.

This firm is a strong match for founders of mature, high-growth companies seeking late-stage funding or preparing for a major liquidity event. Their activity in secondary markets also makes them a relevant contact for stakeholders in established private tech companies.

• Investment stages: Early-stage venture, late-stage venture, and secondary market
• Industries of focus: FinTech, Cyber Security, Internet of Things, Space Travel, Big Data
• Geographical presence: New York, New York
• Founded: 2014
• Portfolio snapshot: 25 investments and 6 exits
• Notable investments: SpaceX, Animoca Brands, Flexport, Rubrik

You can refer to their website here.

11. DOT Capital

DOT Capital is a New York-based boutique firm that invests in companies powering the digital economy. They support founders across a wide range of stages, from initial seed rounds to private equity.

The firm’s portfolio shows a broad interest in the digital economy, with investments in enterprise security platform Veracode and smart-home hardware maker Windmill. Their flexibility in funding, from seed to private equity, signals a capacity to support companies throughout their entire growth journey.

This firm is a good match for founders building businesses in SaaS, marketing, or IoT who are looking for a flexible, long-term financial partner. Their wide investment mandate makes them relevant whether you're raising a seed round or seeking later-stage growth capital.

• Investment stages: Seed, early-stage, late-stage, private equity, and convertible notes
• Industries of focus: Internet of Things, marketing, SaaS
• Geographical presence: New York, New York
• Founded: 2013
• Portfolio snapshot: 27 investments and 10 exits
• Notable investments: Veracode, Zoomcar, Windmill, Blue Wire

You can refer to their website here.

12. Presidio Ventures

Presidio Ventures is a corporate venture capital firm that offers tech startups both funding and business development expertise. As the CVC arm of a major global corporation, they help connect founders with an extensive network and resources.

The firm is known for backing companies through their entire lifecycle, from seed funding to post-IPO stages. Their portfolio features several high-profile unicorns and public companies, including cybersecurity firm Fortinet and HR platform Bob (HiBob).

This firm is a strong potential partner for founders who are looking for a long-term investor with deep corporate connections. Companies in sectors like cybersecurity, robotics, and other areas of the Internet of Things with ambitions for a public offering would find their experience valuable.

• Investment stages: Seed, early-stage, late-stage venture, and post-IPO
• Industries of focus: Internet of Things, Cyber Security, FinTech, Digital Media
• Geographical presence: Santa Clara, California
• Founded: 1998
• Investor type: Corporate Venture Capital
• Portfolio snapshot: 74 investments and 9 exits
• Notable investments: Bob (HiBob), Fortinet, Bloom Energy, Dexterity

You can refer to their website here.

13. Xplorer Capital

Xplorer Capital is a venture firm that invests in early-stage B2B technology companies. They provide seed and venture funding to help founders build and scale their businesses in technical industries.

The firm has a clear focus on sectors like industrial automation and robotics, with a portfolio that includes several high-profile exits. Notable successes include the acquisition of Canvas Technology by Amazon and IPOs for companies like Zipline and Uber.

This firm is a strong potential partner if you're an early-stage founder building a B2B company in a field like robotics or AI. Their track record suggests a good fit for startups with ambitions for a major acquisition or public offering.

• Investment stages: Seed, early-stage, and late-stage venture
• Industries of focus: Industrial automation, robotics, AI, and Internet of Things
• Geographical presence: Menlo Park, California
• Founded: 2011
• Portfolio snapshot: 38 investments and 11 exits
• Notable investments: Zipline, Uber, Square, Canvas Technology

You can refer to their website here.

14. Parkway Venture Capital

Parkway Venture Capital is a New York-based firm that invests in technology companies from early to late stages. They focus on sectors like generative design, business intelligence, and health tech, including companies in the Internet of Things space.

The firm is known for backing ambitious, high-profile companies, including Elon Musk's xAI and the humanoid-robotics startup Figure. Their portfolio highlights a focus on foundational technologies with the potential to become market leaders, and they have a history of leading significant funding rounds.

Parkway is a good fit for founders building companies in deep tech sectors like AI, robotics, and quantum computing. Their track record is relevant for teams with unicorn ambitions and a strategy for large-scale growth.

• Investment stages: Early-stage and late-stage venture
• Industries of focus: Artificial Intelligence, robotics, health care, Internet of Things, augmented reality
• Geographical presence: New York, New York
• Founded: 2019
• Portfolio snapshot: 50 investments and 16 exits
• Notable investments: xAI, Figure, SandboxAQ, Lyft

You can refer to their website here.

15. Tech Square Ventures

Tech Square Ventures is an Atlanta-based firm that provides seed and early-stage funding for enterprise software, marketplace, and platform companies.

The firm backs companies with practical, high-impact solutions, from enterprise sales tools like Saleo to critical logistics technology used in Operation Warp Speed. Their portfolio shows a focus on B2B companies with clear validation from corporate or government clients.

This firm is a strong fit for early-stage founders building enterprise or marketplace platforms, especially if your technology has clear applications for large-scale industrial or government use.

• Investment stages: Seed, early-stage venture, and convertible notes
• Industries of focus: Enterprise software, marketplaces, logistics, and companies in the Internet of Things sector
• Geographical presence: Atlanta, Georgia
• Founded: 2014
• Portfolio snapshot: 126 investments and 7 exits
• Notable investments: Includes enterprise platform Saleo, logistics tech provider Coros, and VR training company Moth + Flame, which has been adopted by the U.S. Air Force.

You can refer to their website here.

What This Tells Us About The VC Scene for Internet of Things Companies

The venture capital support for companies in the Internet of Things sector appears both broad and deep. Our overview shows a significant number of firms focused on pre-seed, seed, and early-stage rounds, which is great news if you're just starting out. At the same time, there is solid support for later stages, with many investors prepared to fund companies through growth rounds and toward an exit.

Geographically, you'll notice that while major hubs like the Bay Area and New York are well-represented, there are also specialized investors in other key cities across the U.S. This variety in stage focus and location indicates a mature and well-balanced funding environment for founders building connected technology.

Raise Confidently with Rho

Having a focused list of investors is a major advantage when your time and energy are limited during a fundraise. We hope this guide helps you connect with the right partners for your company.

If you’ve just raised, Rho can help you set up your financial stack in minutes. Our platform is built to get your new capital working for you without delay.

We provide the tools you need to manage your funds well, from business banking and corporate cards to automated bill pay. This gives you a clear financial picture so you can focus on growing your business.

FAQs about Venture Capital Firms Focused on Internet of Things

What do early-stage IoT venture capital firms look for?

Early-stage firms want to see a working prototype, initial market validation, and a clear understanding of your unit economics. They focus on the founding team's expertise and a well-defined plan for scaling production and customer acquisition.

How is pitching to a hardware venture capital firm different?

When pitching to hardware VCs, emphasize your supply chain strategy, manufacturing plan, and bill of materials. Be prepared to discuss product development timelines, potential roadblocks, and how you will manage inventory and distribution effectively.

Which US cities are hubs for IoT venture capital firms?

Beyond Silicon Valley and New York, cities like Boston, Austin, and Chicago have strong ecosystems for IoT investment. Look for firms with local expertise and networks that can support your specific hardware or software needs in these growing tech centers.

How can I find European venture capital firms for my IoT startup?

To find European investors, research firms in tech hubs like London, Berlin, and Stockholm. Many have a specific interest in IoT. Attending major European tech conferences and using online investor databases can also create valuable connections.

Are there VCs that specialize only in industrial IoT?

While many tech VCs invest in industrial IoT, specialized firms are less common. It's often more effective to target investors with a broader enterprise or deep tech focus who have experience with B2B hardware and infrastructure.

How can Rho help after I secure funding from an IoT VC firm?

Once your funding is secured, our platform helps you manage it effectively. We offer corporate cards, automated bill pay, and business banking, all integrated to give you a clear view of your company's finances. Rho gets you started quickly.