Top 15 Venture Capital Firms Investing in Internet of Things Startups

For founders building companies in the Internet of Things (IoT) space, understanding which investors specialize in your field is a critical part of preparing to raise capital. It helps you focus your efforts on the venture capital firms most likely to appreciate your vision for connected devices and smart technology.

To help with your fundraising, our team has curated this overview of the top IoT investment firms. We cover a range of investors, from early-stage to late-stage specialists, so you can quickly identify potential partners for your startup.

Actively raising? You can now access non-dilutive funding options like venture debt and credit lines through Rho Capital. Rho provides access to business banking, corporate cards, and bill pay—built for startup teams moving fast.

Key Takeaways

• Securing venture funding for your IoT startup is about more than just capital; it’s about finding a partner who understands the unique hardware and software complexities of your industry.

• Top venture capital firms like Scout Ventures, Amazon Alexa Fund, Scrum Ventures, and Script Capital are notable backers actively investing in companies focused on the Internet of Things.

• If you are raising or have just closed a round, Rho helps you manage your new capital with integrated business banking, corporate cards, and automated bill pay.

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

Knowing the right investors to contact is important at every point in your company's growth, from the early days to a potential exit. To help you connect with the right partners, we've outlined which VC firms focus on Internet of Things companies at different investment stages.

Pre-seed and Seed VC Firms in Internet of Things

Pre-seed and seed funding is the initial capital used to validate your idea, build a minimum viable product, and find early market traction. For founders building connected devices, seed stage venture capital firms like mHUB and SmartGateVC specialize in this foundational phase, while Tech Square Ventures also focuses on early-stage enterprise and platform technologies.

Early Stage VC Firms in Internet of Things

Early-stage funding, typically Series A and B, is for startups with a proven product and initial revenue, aimed at scaling operations and accelerating growth. Some of the most active early-stage IoT venture capital firms include Scout Ventures, which invests in frontier tech, and the Amazon Alexa Fund, which backs voice and smart device innovation.

As you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently. For non-dilutive options, Rho Capital can also connect you to venture debt and credit lines tailored to your business model.

Late Stage VC Firms in Internet of Things

Late-stage venture capital is for established companies looking to expand into new markets, make acquisitions, or prepare for an IPO. Technology-focused venture capital firms like Titanium Ventures and Adit Ventures are prominent late-stage investors with portfolios of well-known public companies and unicorns.

It's also worth noting that some VC firms invest across all startup funding stages too.

To help you find the right investment partner, we've detailed some of the top VC firms that focus on the Internet of Things. The following list includes key information on their investment stages, geographic focus, and what makes each firm a compelling option for founders.

1. Scout Ventures

Based in Austin, Scout Ventures is a venture capital firm that invests in frontier and dual-use technologies. Their stated mission is to back companies that are making the world a better and safer place.

The firm has a clear focus on deep tech sectors including robotics, drones, and quantum computing. They have a track record of backing unicorns like the digital identity network ID.me and health-tech platform Unite Us.

Scout Ventures is a good fit for founders building companies in complex, regulated, or hardware-intensive industries. Their multi-stage approach means they can be a long-term partner, from initial seed funding through later growth rounds.

• Investment stages: Seed, Early Stage, and Late Stage Venture
• Industries of focus: Frontier tech, including Drones, Robotics, Cyber Security, and Internet of Things
• Geographical presence: Austin, Texas
• Founded: 2010
• Notable investments: ID.me, Unite Us, Virtuix
• Portfolio size: Over 125 investments

You can refer to their website here.

2. Amazon Alexa Fund

The Amazon Alexa Fund is a corporate venture capital arm of Amazon, committing up to $200 million to support innovation in voice technology. It backs companies that are building new experiences with voice assistants and smart devices.

The fund has a clear focus on companies that can integrate with the Alexa ecosystem, spanning consumer electronics, AI, and the Internet of Things. Their portfolio includes well-known brands like smart-security company Ring and smart-thermostat maker Ecobee, showing a preference for consumer hardware.

This firm is an ideal partner for founders developing products that can leverage voice technology or expand the smart home market. A strategic investment from the Alexa Fund can provide more than just capital, offering access to Amazon's technical expertise and vast distribution channels.

Once you secure funding from a partner like the Alexa Fund, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage, and Late Stage Venture
• Industries of focus: Voice technology, AI, Consumer Electronics, and Internet of Things
• Geographical presence: Seattle, Washington
• Founded: 2015
• Notable investments: Ring, Ecobee, Greenlight
• Portfolio size: Over 140 investments

You can refer to their website here.

3. Scrum Ventures

Scrum Ventures is an early-stage venture firm that focuses on building bridges between startups and large corporations. Based in San Francisco, they help new companies innovate alongside established industry players.

The firm invests from seed to early-stage rounds, with a clear interest in companies focused on the Internet of Things, AI, and digital health. Their portfolio includes well-known unicorns like the health platform Noom and successful IPOs like smart-lock maker Photosynth.

Scrum Ventures is a strong match for founders whose products could benefit from strategic corporate partnerships. Once you secure that funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed and Early Stage Venture
• Industries of focus: Internet of Things, AI, Digital Health
• Geographical presence: San Francisco, California
• Founded: 2013
• Notable investments: Noom, GrubMarket, May Mobility, Photosynth
• Portfolio size: Over 120 investments

You can refer to their website here.

4. Script Capital

Script Capital is an early-stage venture firm based in San Francisco that invests in internet and software companies. They focus on providing foundational capital to startups in sectors like SaaS, FinTech, and companies working on the Internet of Things.

The firm has a clear record of backing companies that achieve successful exits through acquisition by major tech players. Notable investments include Zenly (acquired by Snapchat), Sqreen (acquired by Datadog), and LockerRoom (acquired by Spotify).

Script Capital is a good match for founders building software products with the potential for strategic integration into larger platforms. Their history suggests a strong ability to identify and support companies on a path to a significant acquisition.

Once you secure funding from a partner like Script Capital, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed and Early Stage Venture
• Industries of focus: Internet of Things, SaaS, FinTech, Software
• Geographical presence: San Francisco, California
• Founded: 2016
• Notable investments: Patreon, Zenly (acquired by Snapchat), Sqreen (acquired by Datadog)
• Portfolio size: 56 investments

You can refer to their website here.

5. Titanium Ventures

Titanium Ventures is a San Francisco-based firm that invests in technology companies. They aim to create value by generating synergy revenues across their portfolio.

The firm invests across both early and late stages, showing flexibility in its approach. Their portfolio is full of major public companies and significant exits, like the Auth0 acquisition by Okta, signaling a focus on backing companies with potential for large-scale success.

This firm is a compelling choice for founders building enterprise technology companies in areas like cybersecurity or cloud infrastructure. Their track record of guiding companies to IPO or major acquisition makes them a strong partner for ambitious teams aiming for a significant exit.

Once you secure funding from a partner like Titanium Ventures, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Early Stage Venture, Late Stage Venture
• Industries of focus: Cloud Infrastructure, Cyber Security, Financial Services, Internet of Things
• Geographical presence: San Francisco, California
• Founded: 2011
• Notable investments: Auth0 (acquired by Okta), GitLab, CrowdStrike, Snap Inc., DocuSign
• Portfolio size: 137 investments

You can refer to their website here.

6. SmartGateVC

SmartGateVC is a pre-seed and seed-stage venture firm based in Southern California and Armenia. They invest in companies working on deep technology and artificial intelligence, including areas like life sciences and human-computer interaction.

The firm concentrates on early-stage startups building foundational AI technologies. Their portfolio includes recognized companies like Krisp, an AI noise-cancellation app, and SuperAnnotate, a computer-vision platform.

SmartGateVC is a good partner for founders with deep technical expertise in AI, especially those building products in specialized fields like bioinformatics or medical devices. Once you find the right partner and secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed and Early Stage Venture
• Industries of focus: Artificial Intelligence, Internet of Things, Cyber Security, Medical Devices
• Geographical presence: Los Angeles, California
• Founded: 2017
• Notable investments: Krisp, SuperAnnotate, Britive, Podcastle
• Portfolio size: 28 investments

You can refer to their website here.

7. Joule Ventures

Joule Ventures is a New York-based firm that acts as a first-check partner for Israeli founders. They specialize in helping startups with enterprise-grade solutions enter and grow within U.S. markets.

The firm invests across multiple stages, from seed to late-stage, with a focus on enterprise software in areas like cybersecurity and the Internet of Things. Their portfolio shows a history of successful exits to major technology companies, including acquisitions by Qualcomm and ServiceNow.

Joule Ventures is an excellent match for Israeli founders building enterprise technology for the U.S. market, especially those seeking a long-term partner. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage, and Late Stage Venture
• Industries of focus: Enterprise Software, Cloud Infrastructure, Cyber Security, and Internet of Things
• Geographical presence: New York, with a focus on Israeli founders entering U.S. markets
• Founded: 2010
• Notable investments: Coralogix, Cellwize (acquired by Qualcomm), BehavioSec (acquired by LexisNexis), WeWork
• Portfolio size: 41 investments

You can refer to their website here.

8. mHUB

mHUB is a Chicago-based innovation center focused on hardtech and manufacturing. It operates as an accelerator and venture firm, providing foundational support for companies building physical products.

The firm has a clear focus on hardware-intensive sectors, including product design, consumer electronics, and the Internet of Things. Their portfolio includes notable companies like the publicly-exited med-tech firm Exicure and Hyivy Health, a CES 2024 Innovation Award winner.

mHUB is a strong partner for founders who need hands-on support with product development and manufacturing, not just capital. Their model is particularly helpful for early-stage hardtech companies that can benefit from their incubator and accelerator programs.

Once you secure funding from a partner like mHUB, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Hardtech, Manufacturing, Internet of Things, Product Design
• Geographical presence: Chicago, Illinois
• Founded: 2017
• Notable investments: NovaXS, Hyivy Health, Exicure (public exit)
• Portfolio size: 45 investments
• Investor type: Accelerator, Incubator, Venture Capital

You can refer to their website here.

9. Moment Ventures

Moment Ventures is a Palo Alto-based firm that invests in companies building the future of work. Their focus includes infrastructure, IT, and robotics, with an interest in companies working on the Internet of Things.

The firm invests across multiple stages, from seed to late-stage rounds. Their portfolio includes companies like service robotics maker Savioke and logistics tech platform Flowspace.

Moment Ventures is a good match for founders creating technology for work, infrastructure, and industry. Once you secure that funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage, and Late Stage Venture
• Industries of focus: Future of Work, Infrastructure, Robotics, Internet of Things, Financial Services
• Geographical presence: Palo Alto, California
• Founded: 2013
• Notable investments: World View, Savioke, Flowspace, AltoIRA
• Portfolio size: 49 investments

You can refer to their website here.

10. Adit Ventures

Adit Ventures is a New York-based investment firm that provides capital to technology companies across multiple stages. They are active in early and late-stage venture rounds and also operate in the secondary market.

The firm is known for its portfolio of high-profile, category-defining companies, including the spaceflight pioneer SpaceX and logistics platform Flexport. This focus on established unicorns, combined with their secondary market activity, signals a strategy of backing proven leaders in high-growth sectors.

Adit Ventures is a compelling partner for founders of well-established companies seeking late-stage growth capital on the path to an IPO or major exit. Their experience with secondary transactions also makes them a potential resource for founders and early investors looking for liquidity.

Once you secure funding from a partner like Adit Ventures, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Early Stage Venture, Late Stage Venture, Secondary Market
• Industries of focus: Space Travel, FinTech, Cyber Security, Augmented Reality, Internet of Things
• Geographical presence: New York, New York
• Founded: 2014
• Notable investments: SpaceX, Animoca Brands, Flexport, Rubrik, Dataminr
• Portfolio size: 25 investments
• Investor type: Venture Capital, Family Investment Office, Secondary Purchaser

You can refer to their website here.

11. DOT Capital

DOT Capital is a New York-based boutique venture firm that invests in companies building the digital economy. They support founders across a wide range of industries, from SaaS to companies working on the Internet of Things.

The firm has a notably broad investment strategy, providing capital from seed rounds all the way to private equity. Their portfolio reflects this flexibility, with investments in companies like smart-home hardware maker Windmill and application-security leader Veracode.

DOT Capital is a good fit for founders looking for a long-term financial partner that can support them through multiple growth stages. Their interest in diverse sectors makes them a potential match for many different types of technology companies.

Once you secure funding from a partner like DOT Capital, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage, Late Stage, Private Equity
• Industries of focus: Internet of Things, Marketing, SaaS
• Geographical presence: New York, New York
• Founded: 2013
• Notable investments: Windmill, Veracode, Zoomcar, Blue Wire
• Portfolio size: 27 investments
• Number of exits: 10

You can refer to their website here.

12. Presidio Ventures

Presidio Ventures is a corporate venture capital firm that provides financial support and business development expertise to technology startups. Based in Santa Clara, they leverage their corporate backing to help companies scale with strategic resources.

The firm invests across a company's entire lifecycle, from seed rounds to post-IPO, signaling a capacity for long-term partnership. Their portfolio features companies that have achieved significant scale, including public companies like Fortinet and Bloom Energy and unicorns like HiBob and Dexterity.

This firm is a compelling partner for founders of enterprise technology companies with a clear path to a public offering or a high-value exit. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture, Post-IPO
• Industries of focus: Cyber Security, FinTech, companies working on the Internet of Things, Digital Media
• Geographical presence: Santa Clara, California
• Founded: 1998
• Notable investments: Fortinet, Bloom Energy, HiBob, Dexterity, Shapeways
• Portfolio size: 74 investments
• Investor type: Corporate Venture Capital

You can refer to their website here.

13. Xplorer Capital

Xplorer Capital is a venture capital firm based in Menlo Park that invests in B2B technology companies. They focus on providing early-stage capital to startups developing solutions for the service and industrial sectors.

The firm shows a clear interest in deep tech, with a portfolio heavy in AI, robotics, and companies working on the Internet of Things. They have a track record of backing companies to significant exits, including the acquisition of Canvas Technology by Amazon and the IPO of Zipline, which are part of their portfolio.

This makes Xplorer Capital a strong potential partner for founders building enterprise technology with a clear path to scale. Their experience suggests they are well-suited to support companies aiming for a major acquisition or public offering.

Once you secure funding from a partner like Xplorer Capital, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage, and Late Stage Venture
• Industries of focus: B2B Tech, AI, Robotics, Industrial Automation, Internet of Things
• Geographical presence: Menlo Park, California
• Founded: 2011
• Notable investments: Zipline, Uber, Square, Canvas Technology (acquired by Amazon), Scalefast
• Portfolio size: 38 investments

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 shaping the future. They back businesses across a range of sectors, including health tech, B2C, and companies working on the Internet of Things.

The firm has a clear focus on ambitious, frontier technology, with a portfolio that includes Elon Musk’s xAI and humanoid-robotics company Figure. Their investments in high-profile unicorns signal a strategy of backing companies with the potential to define new industries.

Parkway is a strong partner for founders building companies in deep tech sectors like AI, robotics, and quantum computing. Their ability to invest in both early and late-stage rounds makes them a good fit for teams seeking a long-term capital partner.

Once you secure funding from a partner like Parkway Venture Capital, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Early Stage and Late Stage Venture
• Industries of focus: Technology, Health Tech, Augmented Reality, companies working on the Internet of Things, B2C
• Geographical presence: New York, New York
• Founded: 2019
• Notable investments: xAI, Figure, SandboxAQ, Lyft
• Portfolio size: 50 investments
• Number of exits: 16

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 capital. They invest in enterprise software, marketplace, and platform companies.

The firm backs companies with tech-enabled services that have clear, large-scale applications. Their portfolio includes Coros, whose technology was used to track COVID-19 vaccines for Operation Warp Speed, and Moth + Flame, a VR training platform adopted by the U.S. Air Force.

This firm is a strong choice for founders building enterprise or platform technologies that can secure major government or corporate contracts. Once you secure funding, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture, Convertible Note
• Industries of focus: Enterprise, Marketplace, Platform, companies working on the Internet of Things, Supply Chain Management
• Geographical presence: Atlanta, Georgia
• Founded: 2014
• Notable investments: Saleo, Coros, Moth + Flame
• Portfolio size: 126 investments

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 space appears well-balanced. Our list shows a healthy mix of firms that focus on early-stage investments and those that provide capital through later growth rounds. This indicates a mature market where you can find a financial partner aligned with your company's specific stage.

Geographically, while there is a strong concentration of investors in tech hubs like California and New York, firms are also active in cities like Chicago, Atlanta, and Austin. This diversity provides more options for founders building their companies outside of traditional venture centers.

As you plan your strategy, remember that Rho Capital can help you access non-dilutive funding like venture debt to complement an equity round. Once you've secured capital, our integrated platform helps you manage it with tools for banking, cards, and payments.

Raise Confidently with Rho

Having a focused list of relevant investors is a significant advantage when you're raising capital. It helps you direct your time and energy toward the firms most likely to appreciate your company's potential.

If you’re seeking funding, Rho Capital connects you to non-dilutive funding options like venture debt and credit lines through a fast, guided process. We help you find the right financing without giving up equity.

Our team helps you access working capital suited to your business model. Once funds are secured, Rho provides integrated tools—business banking, corporate cards, and automated bill pay—to help you manage and deploy your new capital efficiently.

FAQs about Venture Capital Firms Focused on Internet of Things

Are most IoT venture capital firms in Silicon Valley?

While Silicon Valley is a major hub, IoT investors are found in other tech centers like New York, Austin, and Chicago. This geographic spread gives founders more options for finding the right financial partner.

Which VCs focus on industrial IoT?

Firms like Scout Ventures and Xplorer Capital often invest in industrial IoT. They look for companies building solutions in robotics, automation, and supply chain management, which require deep technical knowledge.

How do I find seed stage IoT venture capital firms?

Look for firms that explicitly state a pre-seed or seed focus, like SmartGateVC and mHUB. These investors provide the initial capital needed to develop your product and prove your concept in the market.

Are there US venture capital firms that focus on Israeli IoT startups?

Yes, some US firms specialize in helping Israeli founders. Joule Ventures, for example, acts as a first-check partner for Israeli companies with enterprise solutions looking to expand into the American market.

What are my funding options besides equity?

Beyond equity, you can explore non-dilutive options. Rho Capital connects you to venture debt and credit lines, helping you secure working capital without giving up ownership, which is ideal for managing hardware inventory or growth expenses.

How can Rho help my IoT startup manage its funds?

Once you secure funding, our integrated platform helps you manage it. Rho provides business banking, corporate cards, and automated bill pay, giving you clear visibility and control over your company's finances.