Investment San Francisco

IFTTT Banks $30M B Round to Build out Hardware Support

 

A lot of the startups we cover, and a lot of the most successful startups are very narrow in focus. They focus on one or two features for a particular niche. 1 However, IFTTT just raised $30M to expand their focus.

If you are not familiar with IFTTT – if this then that – it is one of the most useful startups that we have come across. Here is what we wrote a while back in a look at Mark Cuban’s startup portfolio:

IFTTT allows users to connect a ton of different applications and hardware products. Once these apps and products are connected, users can set up recipes that trigger actions:

 

There are hundreds of thousands of different uses for IFTTT. For example, here are a few of the top recipes all time:

102384 IFTTT Banks $30M B Round to Build out Hardware Support103371 IFTTT Banks $30M B Round to Build out Hardware Support

8981 IFTTT Banks $30M B Round to Build out Hardware Support164966 IFTTT Banks $30M B Round to Build out Hardware Support

IFTTT already has a bevy of influential investors, including the like of Mark Cuban. However, with this new investment, they add a seasoned venture firm, along with a new veteran board member:

Norwest Venture Partners with participation from existing investor A16Z. As part of the deal, IFTTT is also bringing on a new board member, Josh Goldman, who is a general partner at Norwest and who holds advisory roles on 15 other boards, according to CrunchBase.2

According to Mike Issac of The New York Times, IFTTT will use the funding in a few different ways. Firstly, the plan to build out their support of hardware devices:

More commonly known as the Internet of Things in tech industry parlance, companies like Philips and SmartThings have started to manufacture Wi-Fi-connected products — like light bulbs, door locks and Crock-Pots — effectively allowing people to control what goes on in their home when they aren’t actually there.3

 

  1. Sure, some of the startups with the highest valuations have a broad appeal – Uber, Airbnb, Dropbox, Pinterest and so on. These seem to be the exception. If you were to take a cross section of all startup valuation, the narrowly focused, niche companies make up the bulk of the middle.  
  2. Jordan Crook, TechCrunch, “IFTTT Lands $30 Million Series B From Norwest Venture Partners, A16Z,” 28 August 2014  
  3. Mike Issac, The New York Times Bits Blog, “With $30 Million More in Hand, IFTTT Looks to the Internet of Things,” 28 August 2014