Generally speaking, if you���re wearing a technology on your body, you have to really love it or find it deeply useful or even essential.
That���s a high bar, which helps explain why wearables have long been a fairly niche area for startup investment. Per 蹤獲弝け data, the category reliably attracts less than 1% of all venture funding in a given year.
This year, however, the space is looking comparatively perky. Largely that���s due to a single company: , maker of a smart ring that collects data on dozens of personal health and wellness metrics.
Earlier this month, the 12-year-old Finnish company that it closed on more than $900 million in a -led financing at an impressive $11 billion valuation. The raise comes in the wake of sharp growth, with Oura to reach $1 billion in sales this year.
Beyond Oura
But Oura isn���t the only wearables-related company pulling in significant venture investment recently. Using 蹤獲弝け , we put together a sample list of 18 companies funded in roughly the past year innovating in this area.
Funded startups have a broad array of chosen use cases as well. While medical and health monitoring remains the most prevalent application, we���re also seeing the AI boom trickling into more consumer-focused offerings outside the health care realm.
Smart lenses, glasses and cow collars
In this arena, one of the largest and most recent rounds went to , a startup developing smart contact lenses that incorporate a microdisplay and external sensors to provide wearers with useful information based on their focus. The 4-year-old, Dubai-based company $250 million this summer at a $1.35 billion valuation.
, a maker of Android smartphones, earbuds and watches, is another wearables developer, albeit not a pure-play in the space, with a big round of late. The startup closed on a $200 million last month to further its vision of an ���AI-native platform in which hardware and software converge into a single intelligent system.��� The company cited smart glasses as one of the devices in which it envisions incorporating its operating system.
And while wearables is usually understood to be a category for humans, we did mix it up a bit in our list by including , a maker of a platform that combines smart collars and virtual fencing for ranchers to manage their cattle. It $100 million in Series D funding this summer at a $1 billion valuation.
Health and medical conditions
Wearables for monitoring medical conditions are also still drawing investors��� attention with two established names each picking up $100 million financings this year.
San Diego-based , which has developed a wearable biosensor that measures glucose levels continuously just beneath the skin���s surface, secured its $100 million round in March. A month earlier, , a San Jose, California-based maker of wearable, connected patches for remote monitoring of cardiac health, secured a round of the same size, led by .
We���re also still seeing some varied startup activity around health-monitoring wearables. An offbeat one that caught our eye was , which develops a wearable that tracks biomarkers in sweat to measure hydration, nutrition, stress and other physiological data.
Deep-pocketed competition
Being in an offbeat niche might provide considerable advantages to a startup. That���s because wearables startups play in a space that also happens to draw the largest technology companies in the world.
From watches to devices to ���s , giants with valuations in the trillions are finding appeal in the space. One of Apple���s newest offerings ��� AirPods with ��� shows the technological sophistication of wearables is only on the rise.
Even so, we���re betting startups will continue to find ways to innovate in ways that differentiate them from the tech giants. In particular, they have the advantage of marketing to a small initial early-adopter crowd and tweaking a product until it’s ripe for a much wider audience.
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