Internet of Things scaleup Simulity secures £4m investment

| Beauhurst

What do they do?

Simulity is a Wales-based software company specialising in ’embedded communications’. In May of this year it unveiled its eSIM project, designed to connect devices securely across sectors including automotive, industrial, healthcare, and consumer products. Its clients include more than 45 mobile network operators.

The ‘Internet of Things’ traditionally conjures up images of smart domestic appliances or office equipment, but in its broader applications it has implications from everything from traffic control to predictive maintenance in industrial contexts. Indeed, McKinsey estimates the Internet of Things market to have an economic impact of between $3.9 trillion and $11.1 trillion per year by 2025 – equivalent to up to 11% of the world economy.

What have they raised?

Simulity has just received £4m in equity from Foresight Group, a fund which traditionally invests in what it sees as projects with long-term potential. 

Fundraisings by companies working on the Internet of Things

As the graph shows, investment amounts in the IoT peaked dramatically in 2011, but there has been gradual growth in deal numbers since 2013, and Q4 of this year would not require a dramatically greater number of deals than in previous quarters to continue the trend.

Behind the money

The Foresight Group’s has invested in other companies such as PlasRecycleCogenBiofortuna, and Utility Funding. It has also previously invested in Gemalto, another SIM specialist, which saw the group receive 30x the value of its original investment.

Almost half (48%) of IoT companies which receive equity funding are in the earliest stage of their development, suggesting a willingness of investors to gamble on the industry – unsurprisingly, given the predictions above for its future.

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