Last year saw the average funding round for Australian Internet of Things (IoT) startups reach the highest level ever, at A$21.7 million, research shows.
Overall, the total invested in Australian IoT startups reached an all-time high, at A$173 million.
The research was done by NASDAQ listed electronics distributor Avnet Abacus in Phoenix, Arizona.
Avnet Abacus consults engineers who design new products, and analysed business information source Crunchbase for companies listed under Internet of Things for investment activity.
Investment in Australian IoT startups has risen steadily since 2016, Avnet Abacus' figures suggest.
Worldwide, the story is different: the global IoT startup sector has experienced a 22 per cent drop in funding, Avnet Abacus said.
Nevertheless, despite the venture capital generally cooling off due to current economic conditions, the research shows investor confidence is higher than ever for the long-term prospects of companies developing products for IoT, Avnet Abacus' technical director Dr Sara Ghaemi said.
Compared to the Australian funding figures, European and US IoT startups saw funding of A$24.8 and A$24 respectively during 2022.
IoT startups in Europe are acquired at an all-time high rate as well, whereas worldwide and in the United States, exits are at their second highest ever, down marginally from 2021.
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