Top 15 Venture Capital Firms Investing in Internet of Things Startups

If you're building a startup in the Internet of Things (IoT) space, preparing to raise capital means more than just perfecting your pitch. It’s about finding the right investors who understand the unique challenges and opportunities of connected devices, from early-stage hardware to late-stage enterprise technology.

To help you focus your fundraising efforts, our team at Rho has curated this overview of top IoT venture capital firms. This guide is designed to give you a quick summary of relevant investors so you can spend less time searching and more time building your business.

Rho provides access to business banking, corporate cards, and bill pay — built for startup teams moving fast.

Key Takeaways

• For startups in the Internet of Things space, securing venture funding means finding a partner who understands the complexities of building connected hardware and software, not just receiving capital.

• Venture capital firms like Scout Ventures, Amazon Alexa Fund, Scrum Ventures, and Script Capital are notable backers in the Internet of Things sector, each with a history of supporting businesses in this area.

• Whether you are actively fundraising or have just closed a round, Rho helps you manage your new capital with integrated tools like fast business banking, corporate cards, and automated bill pay.

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

Whether your company is in its early stages or preparing for an exit, it helps to know who to talk to. Here’s a quick overview of venture capital firms in the Internet of Things space, organized by the stages they invest in.

Pre-seed and Seed VC Firms in Internet of Things

Pre-seed and seed funding are the earliest forms of capital, typically used to validate an idea, build a minimum viable product (MVP), and achieve initial market traction. For founders of connected devices startups, seed stage venture capital firms like mHUB, SmartGateVC, and Tech Square Ventures are often the first institutional partners.

Early Stage VC Firms in Internet of Things

Early-stage funding, which includes Series A and B rounds, helps you scale your operations, grow your team, and expand your customer base after finding product-market fit. Some early stage IoT venture capital firms with a history of backing enterprise technology and industrial automation startups include Scout Ventures and Joule Ventures.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

Late Stage VC Firms in Internet of Things

Late-stage rounds provide significant capital for mature companies to accelerate growth, enter new markets, or prepare for an exit through an acquisition or initial public offering (IPO). Technology-focused venture capital firms such as Adit Ventures and Titanium Ventures are examples of late stage investors that support companies on this path.

It's also worth noting that many technology venture capital firms, including Amazon Alexa Fund and Presidio Ventures, invest across multiple funding stages from seed to exit.

To help you identify the right partners, here is a closer look at top VC firms that specialize in the Internet of Things. We've included key details on their investment stages, geographic focus, and what makes each firm a compelling choice for founders.

1. Scout Ventures

Scout Ventures is an early-stage firm that invests in frontier and dual-use technologies with the goal of making the world a better, safer place. They support companies from the seed stage through later venture rounds, focusing on teams that are building foundational technology.

The firm has a clear focus on deep tech, including robotics, drones, and quantum computing, often with both commercial and government applications. Their portfolio includes unicorns like ID.me, which raised $100 million at a $1.5B valuation, showing a history of backing companies to significant scale.

Scout Ventures could be a good partner if you are a founder working on hardware or software with potential for both commercial and public sector use. Their experience with companies like Virtuix, an early VR pioneer that raised a $3 million seed round with the firm, suggests an understanding of the hardware development lifecycle.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Frontier and dual-use technologies, including robotics, drones, and quantum computing
• Geographical presence: Austin, Texas
• Founded: 2010
• Notable portfolio companies: ID.me, Unite Us, Virtuix
• Portfolio size: 125 investments
• Exits: 28

You can refer to their website here.

2. Amazon Alexa Fund

The Amazon Alexa Fund is a corporate venture capital arm that provides up to $200 million to support innovation in voice technology. As part of Amazon, it backs companies building new experiences with voice at their core.

The fund invests across all stages, from seed to late-stage rounds, and its portfolio shows a wide interest from consumer hardware to enterprise software. Successes like the smart-home brand Ring and thermostat maker Ecobee highlight their impact in the connected device space.

This fund is a strong match for founders whose technology can advance the voice-enabled ecosystem, whether through consumer hardware, AI applications, or enterprise software. If your product has a clear connection to ambient computing or voice interfaces, the Alexa Fund offers strategic value beyond just capital.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture, Convertible Note, Debt
• Industries of focus: Voice technology, Artificial Intelligence (AI), Consumer Electronics, Hardware, Software, FinTech, Internet of Things
• Geographical presence: Seattle, Washington
• Founded: 2015
• Notable portfolio companies: Ring, Ecobee, Greenlight, Osmo
• Portfolio size: 141 investments
• Exits: 23

You can refer to their website here.

3. Scrum Ventures

Scrum Ventures is an early-stage firm that helps startups and corporations innovate together. They invest from the seed stage onward, acting as a bridge between emerging technology and corporate partners.

A key part of their model is creating partnerships between startups and large companies, giving founders a path to market validation. Their portfolio includes notable exits like the smart-lock developer Photosynth and unicorns such as the digital health platform Noom.

This firm is a good fit if your startup could benefit from strategic alliances with established corporations, especially in the IoT space. Their approach is helpful for founders seeking not just capital, but also access to corporate resources and distribution channels.

• Investment stages: Seed, Early Stage Venture, Convertible Note
• Industries of focus: Internet of Things, Angel Investment
• Geographical presence: San Francisco, California
• Founded: 2013
• Notable portfolio companies: Noom, GrubMarket, May Mobility, Photosynth
• Portfolio size: 123 investments
• Exits: 16

You can refer to their website here.

4. Script Capital

Script Capital is a venture firm that invests in early-stage internet and software companies. Based in San Francisco, they focus on providing seed and early-stage capital to businesses building foundational technology.

The firm has a history of backing companies that achieve significant exits, with portfolio companies like Zenly acquired by Snapchat and Sqreen acquired by Datadog. Their investments also include consumer platforms that have reached massive scale, such as Patreon.

Script Capital could be a good partner if you are building a software or internet business with the potential for a strategic acquisition by a major technology company. Their portfolio suggests an interest in products with strong consumer appeal or clear value for enterprise platforms.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Early Stage Venture, Seed

• Industries of focus: Internet of Things, SaaS, FinTech, Big Data, Software

• Geographical presence: San Francisco, California

• Founded: 2016

• Notable portfolio companies: Patreon, Zenly, Sqreen

• Portfolio size: 56 investments

• Exits: 9

You can refer to their website here.

5. Titanium Ventures

Titanium Ventures is a venture capital firm that invests in technology companies across both early and late stages. The firm emphasizes creating "synergy revenues," connecting its portfolio companies to help them grow together.

The firm has a clear track record of backing companies to major exits, including identity platform Auth0, which was acquired by Okta for $6.5 billion. Their portfolio, which also features IPOs like GitLab and CrowdStrike, shows a focus on foundational enterprise technology.

Titanium Ventures could be a strong partner for founders building enterprise technology with ambitions for a public offering or a large strategic acquisition. Their model is particularly suited for companies in sectors like cybersecurity or cloud infrastructure that can benefit from a network of high-growth tech businesses.

• 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 portfolio companies: Auth0, GitLab, CrowdStrike, Snap Inc., DocuSign
• Portfolio size: 137 investments
• Exits: 36

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 deep-tech companies that are advancing new frontiers with artificial intelligence.

The firm concentrates on technically complex fields, backing founders applying AI to areas like bioinformatics, medical devices, and cybersecurity. Their portfolio includes companies like Krisp, an AI noise-cancellation app, and the cloud security startup Britive, which secured a $20.5 million Series B.

SmartGateVC is a good match if you are a founder with a deep technical background building an AI-native company. Their focus suggests they are prepared to support businesses tackling difficult, science-driven problems from the earliest stages.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Artificial Intelligence (AI), Bioinformatics, Cyber Security, Internet of Things, Medical Device
• Geographical presence: Los Angeles, California and Yerevan, Armenia
• Founded: 2017
• Notable portfolio companies: Krisp, SuperAnnotate, Britive, Podcastle
• Portfolio size: 28 investments
• Exits: 1

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. They invest from the seed stage onward, helping companies establish a commercial foothold in the United States.

The firm has a distinct focus on bridging the Israeli tech ecosystem with American customers, a strategy reflected in their portfolio. They have backed successful enterprise software companies, including the observability platform Coralogix and the RAN-automation company Cellwize, which was acquired by Qualcomm.

This firm is a strong match for Israeli founders with deep-tech or enterprise solutions who are seeking early capital and strategic support for U.S. market entry. Their model is specifically designed to help with this transition.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Big Data, Cyber Security, Cloud Infrastructure, Internet of Things, Software
• Geographical presence: New York, New York
• Founded: 2010
• Founder focus: Israeli entrepreneurs entering U.S. markets
• Notable portfolio companies: Coralogix, Cellwize, BehavioSec, Appsee
• Portfolio size: 41 investments
• Exits: 6

You can refer to their website here.

8. mHUB

mHUB is a Chicago-based innovation center focused on "hardtech" and physical product development. It combines venture capital with accelerator and incubator resources to support early-stage founders.

The firm concentrates on hardware-intensive industries, from consumer electronics to med-tech and manufacturing. Its portfolio includes notable companies like Hyivy Health, a CES 2024 Innovation Award winner, and the publicly-listed Exicure, which grew from mHUB-backed technology.

This firm is a strong choice for founders who need more than just capital, especially those requiring access to prototyping labs and manufacturing expertise. If you are building a complex physical product, their hands-on ecosystem provides a clear advantage.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture
• Industries of focus: Hardtech, Manufacturing, Internet of Things, Consumer Electronics, Product Design
• Geographical presence: Chicago, Illinois
• Founded: 2017
• Notable portfolio companies: Hyivy Health, NovaXS, Exicure (Aurasense), Sotaog
• Investor type: Accelerator, Incubator, Micro VC, Venture Capital

You can refer to their website here.

9. Moment Ventures

Moment Ventures is an early-stage venture capital firm that invests in companies building the future of work. Based in Palo Alto, they support founders creating new solutions in infrastructure, robotics, and financial services.

The firm’s focus is on businesses that enable new work models, with a portfolio that includes companies like service robot maker Savioke and logistics platform Flowspace. They invest from seed to late-stage rounds, backing companies that create foundational technology.

Moment Ventures is a good match for founders whose products support the infrastructure of the modern economy. If you are building technology for industries like logistics, robotics, or fintech, their focus is well-aligned.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: Future of Work, Infrastructure, Robotics, Internet of Things, Financial Services
• Geographical presence: Palo Alto, California
• Founded: 2013
• Notable portfolio companies: World View, Savioke, Flowspace, AltoIRA
• Portfolio size: 49 investments
• Exits: 10

You can refer to their website here.

10. Adit Ventures

Adit Ventures is a venture capital firm that invests in technology companies across early and late stages, as well as in the secondary market. They operate as a venture capital firm, secondary purchaser, and family investment office.

The firm is known for backing high-profile, late-stage companies like SpaceX, Flexport, and Animoca Brands, often through secondary market transactions. Their portfolio shows a clear interest in category-defining businesses in sectors from space travel to blockchain gaming.

Adit Ventures is a good fit for founders of mature, high-growth technology companies that are already at or near unicorn status. Their activity in the secondary market also makes them a potential partner for teams seeking liquidity options before an IPO or acquisition.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Early Stage Venture, Late Stage Venture, Secondary Market
• Industries of focus: Space Travel, FinTech, Cyber Security, Internet of Things, Sharing Economy
• Geographical presence: New York, New York
• Founded: 2014
• Notable portfolio companies: SpaceX, Animoca Brands, Flexport, Rubrik
• Portfolio size: 25 investments
• Exits: 9
• Investor type: Venture Capital, Secondary Purchaser, Family Investment Office

You can refer to their website here.

11. DOT Capital

DOT Capital is a boutique venture firm based in New York City that invests in companies shaping the digital economy. They support businesses across a wide range of sectors, from enterprise software to consumer products.

The firm invests across all stages, from seed rounds to private equity, giving them a broad perspective on company growth. Their portfolio reflects this diversity, including the smart-home hardware maker Windmill and the enterprise security platform Veracode.

DOT Capital is a good match for founders building businesses within the broad digital economy, whether in SaaS, marketing, or connected hardware. Their flexible stage focus makes them a potential partner for companies at different points in their journey.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

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

You can refer to their website here.

12. Presidio Ventures

Presidio Ventures is the corporate venture capital arm of Sumitomo Corporation, providing technology startups with financial backing and business development expertise. The firm invests across a wide range of stages, from initial seed rounds to post-IPO support.

The firm has a history of backing companies that achieve major public exits, including cybersecurity firm Fortinet and 3D-printing marketplace Shapeways. Their portfolio also includes unicorns like the HR platform Bob (HiBob) and warehouse robotics company Dexterity.

Presidio Ventures is a strong match for founders building enterprise technology with ambitions for a public offering or significant scale. Their focus on business development suggests they are a valuable partner for startups needing strategic support to grow.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture, Post-IPO
• Industries of focus: Cyber Security, FinTech, Internet of Things, Digital Media
• Geographical presence: Santa Clara, California
• Founded: 1998
• Notable portfolio companies: Fortinet, Bloom Energy, Dexterity, Bob (HiBob)
• Portfolio size: 74 investments
• Exits: 9
• Investor type: Corporate Venture Capital

You can refer to their website here.

13. Xplorer Capital

Xplorer Capital is a venture firm based in Menlo Park that invests in early-stage B2B technology companies. They support businesses from the seed stage through later venture rounds, focusing on foundational enterprise technology.

The firm has a clear focus on industrial automation, robotics, and AI, with a portfolio that includes major exits like the robotics startup Canvas Technology (acquired by Amazon) and drone-delivery pioneer Zipline (IPO).

This firm is a good fit for founders building B2B technology with significant growth potential, especially those targeting enterprise automation or robotics.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture, Late Stage Venture
• Industries of focus: B2B Technology, Industrial Automation, Robotics, AI, Internet of Things
• Geographical presence: Menlo Park, California
• Founded: 2011
• Notable portfolio companies: Zipline, Uber, Square, Canvas Technology
• Portfolio size: 38 investments
• Exits: 11

You can refer to their website here.

14. Parkway Venture Capital

Parkway Venture Capital is a New York-based firm that backs technology companies across early and late stages. They invest in businesses building foundational technologies in sectors like AI, robotics, and health tech.

The firm has a track record of backing ambitious, high-profile companies, including Elon Musk’s xAI and the humanoid-robotics startup Figure. Their portfolio shows a clear focus on businesses with the potential to define new industries, from quantum technology to AI.

Parkway could be a good partner if you are building a company with large-scale ambitions in a technically complex field like AI or robotics. Their history of leading rounds and backing future unicorns suggests they are prepared to support founders with transformative ideas.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Early Stage Venture, Late Stage Venture
• Industries of focus: AI, Robotics, Quantum Technology, Health Tech, Internet of Things
• Geographical presence: New York, New York
• Founded: 2019
• Notable portfolio companies: xAI, Figure, SandboxAQ, Lyft
• Portfolio size: 50 investments
• Exits: 16

You can refer to their website here.

15. Tech Square Ventures

Tech Square Ventures is an early-stage venture firm based in Atlanta that invests in enterprise software, marketplaces, and tech-enabled services. They focus on providing seed and early-stage capital to help founders build and scale their businesses.

The firm’s portfolio highlights a focus on companies with practical, high-impact applications for large organizations. Notable investments include Coros, whose technology was used to track COVID-19 vaccines, and Moth + Flame, a VR training platform adopted by the U.S. Air Force.

This firm is a strong match for founders building enterprise or platform businesses, particularly in sectors like logistics, supply chain management, and enterprise software. Their track record suggests an interest in companies solving concrete problems for established industries.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

• Investment stages: Seed, Early Stage Venture, Convertible Note
• Industries of focus: Enterprise software, marketplaces, tech-enabled services, Internet of Things
• Geographical presence: Atlanta, Georgia
• Founded: 2014
• Notable portfolio companies: Saleo, Coros, Moth + Flame, Cloverly
• Portfolio size: 126 investments
• Exits: 7

You can refer to their website here.

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

This overview of venture capital firms shows a healthy funding environment for companies in the Internet of Things sector. You'll find investors focused on every stage, from pre-seed firms like SmartGateVC to late-stage backers such as Adit Ventures. Many, including Amazon Alexa Fund, invest across the board, suggesting that capital is accessible whether you are just starting out or preparing to scale.

Geographically, while many investors are based in California and New York, the presence of firms in cities like Chicago, Atlanta, and Austin shows that opportunities are not limited to traditional tech hubs. This variety gives you more options when building your list of potential partners.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

Raise Confidently with Rho

Fundraising requires significant time and focus, which is why a targeted list of investors is so important. We hope this guide helps you connect with the right partners faster and get back to building your company.

When you’re ready to manage your new capital, Rho can help you set up your financial stack in minutes. Our platform offers business banking, corporate cards, and automated bill pay to help you operate efficiently.

FAQs about Venture Capital Firms Focused on Internet of Things

What are the top US cities for IoT venture capital firms?

Beyond Silicon Valley, cities like Boston, Austin, and Chicago have strong ecosystems for IoT investment. Firms in these areas often focus on specific industries like hardtech or dual-use technologies, offering you more specialized partnership opportunities.

What do early stage IoT venture capital firms look for?

Early stage investors typically want to see a working prototype, initial customer traction, and a clear go-to-market strategy. They are evaluating your team’s ability to execute and whether your product solves a real, scalable problem.

Are there VCs that focus specifically on industrial IoT?

Yes, many firms specialize in industrial automation and enterprise technology. Investors like Xplorer Capital and Tech Square Ventures often look for B2B companies that improve manufacturing, logistics, or supply chain operations with connected devices.

Are there many IoT-focused venture capital firms in Europe?

Yes, Europe has a growing number of technology venture capital firms active in the IoT space, particularly in cities like London, Berlin, and Stockholm. These firms often invest in smart city, industrial, and mobility-focused startups.

What's the first step after closing a round with an IoT investment firm?

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently, giving you clear financial oversight from day one.

How can Rho help my startup manage its capital?

Our platform provides the financial infrastructure to support your growth. With Rho, you can open business bank accounts, issue corporate cards, and automate bill payments, all in one place to manage your funds effectively.