Declining chipset costs, improving data analytics, and ubiquitous broadband are driving the onslaught of connected devices. Taken together we’re entering the brave new world of the internet of things (IoT), where significant venture capital will flow toward business models that figure out a way to connect a device, mine its data, and provide valuable services to businesses and consumers.
What does this trend mean for cleantech? The ability to connect “things” will result in the possibility of automating decision making in a broad endeavor to drive efficiencies in areas ranging from lighting to home appliances to the smart grid. Almost all of these business models will be broad efficiency plays and carry the advantage of having much less technology risk than other cleantech sectors like next-generation batteries or solar.
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