Industry: Smart home
Smart home startup funding
Homes keep buying cameras, locks and thermostats, yet investors now back the companies that earn after the sale. We help you prove monthly revenue, a certification plan and an edge the big platforms can't copy.
- Investors by type: platform funds, climate VCs and venture lenders
- Decks and models built on recurring revenue per home
- $3B+ raised for 600+ startups since 2014
In short
What is smart home startup funding?
Smart home startup funding is the money makers of connected devices, home energy systems and home robots raise to grow. It comes from angels, the venture arms of Amazon and Samsung, climate funds and venture lenders. Large rounds now go to home energy and robots. Base Power, a home battery company, raised $1 billion in October 2025.
- Who it's for
- Smart home device, platform and home energy companies, pre-seed to Series D+
- What we build
- Investor deck, financial model, valuation, investor list, data room
- Prices
- Deck from $6,000, model from $3,000. Flat fees
- Track record
- $3B+ raised for 600+ startups since 2014
Market data checked on 5 November 2026. Sources are under each section.
Is it worth investing in smart home startups in 2026?
Yes, where a device earns every month or cuts a bill. Households keep buying, but most venture investors have stopped funding one-off gadgets.
The opportunity
New buyers and new kinds of home devices are pulling money back in.
- Apple is launching a home display and a range of accessories in late 2026
- Home batteries and room-by-room heat pumps are raising large rounds
- A maker of robots for household tasks became a unicorn in March 2026
The problem
Brilliant raised $64 million for an in-wall smart home control system, then laid off its entire staff in 2024. Crunchbase linked the pullback to disappointing adoption and mounting losses.
Market size
How big is the smart home market, and who pays for it?
Grand View Research valued the global smart home market at $162.8 billion in 2025. Four needs drive what households buy:
- Safety: about 19 million US households bought a smart video device in the past year (2026)
- Energy: 17% of US internet households own a smart thermostat (2026)
- Control: Apple's new home display, HomeView, goes on sale in November 2026 at $299
- Compatibility: the Connectivity Standards Alliance counts 5,000+ certified products
Venture capital
Which smart home startups still raise big rounds?
In May 2024, Crunchbase reported that VCs had mostly shut the door on smart homes. The large rounds we found from 2024 on went to home batteries, heat pumps and robots for household tasks.
raised by US smart home and smart building companies in 2024 up to 22 May, by Crunchbase's count
valuation of smart home software company Plume after its October 2021 round
valuation of Sunday, which builds robots for household tasks, after its Series B in March 2026
Who invests in smart home startups?
The venture arms of two big platforms, a multi-stage VC, a climate investor and a venture lender. For robots that work in the home, see our list of robotics investors.
Why is smart home a tough sell to investors?
We asked 56 VCs why they turn startups down in our Fundraising 2025 study. Revenue growth, unit economics, burn and missed milestones came first, then defensibility and crowded categories. In smart home, those worries take four specific forms.
The platforms next door
In October 2026, Apple announced a range of cameras, locks and thermostats, made with LG and Schneider Electric. A platform can match a startup's main feature in one release.
What investors ask
- What stops Apple, Amazon or Google from shipping your feature?
What your deck shows
- The job you do that platforms leave alone
- Sales that don't depend on a single ecosystem
Certification costs come first
An Adopter membership of the Connectivity Standards Alliance costs $7,500 a year. Certifying each product adds $3,000.
What investors ask
- Which ecosystems must you certify for, and what will each product cost?
What your deck shows
- A certification budget per product and ecosystem
- Launch dates tied to each approval
Security rules with deadlines
Since 29 April 2024, UK law has banned universal default passwords on smart products. Makers must also publish how long they'll ship security updates.
What investors ask
- How long will you keep each device patched, and who pays for it?
What your deck shows
- A support period for each device, costed in the model
- A clear way to report and fix flaws
Who pays besides the homeowner
Only 17% of smart thermostat owners take part in utility demand response programs, Parks Associates found in 2026.
What investors ask
- Who else pays you: a utility, an insurer or a home builder?
What your deck shows
- Revenue by payer, with signed pilots
- What each partner pays per connected home
How we help you raise
Flat fees agreed before we start. No success fee on advisory work.
The device, its monthly revenue and why platforms won't copy it.
Unit cost, paid-plan uptake, certification spend and runway, by month.
A defensible range, checked against recent home tech deals.
Platform funds, climate investors and lenders that fit your round.
Certifications, supplier terms and security records in one place.
For a sale to a platform, a security firm or an energy company.
Our nearest work is hardware with software on top: investor materials for a US drone maker and an energy platform.
Who we are
Waveup is a London-based fundraising and growth advisory, working in 60+ countries and 90+ industries. Since 2014 we have built the decks, models, CIMs and valuations behind $3B+ raised for 600+ startups. B2C companies make up 27% of our projects on record.
About usSmart home startup funding FAQ
How do smart home startups get funding?
Do VCs still invest in smart home startups in 2026?
Is a smart home startup a good business in 2026?
What should a startup check before joining a smart home partner program?
Who buys smart home startups?
How much does help with a smart home raise cost?
Raising for a smart home company?
Share your device, your monthly revenue and your target round. We'll mark the gaps an investor would spot first.
