openPR Logo
Press release

RFID Technology Firms Win Investors

02-22-2007 03:57 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: RFID Tribe

Investment in firms serving the RFID technology market has exceeded $1.1 billion over the last 18 months

Dallas, TX - Investment in firms serving the radio frequency identification (RFID) technology market has exceeded $ 1.1 billion over the 18 months ending in January 2007. These investments in RFID technology firms resulted in 59 investment transactions over the 18 month period. The $1.1 billion represents an investment rate in the 28-37 percent range of the RFID market’s total sales. The investment rate is based on market estimates by market research firms placing the market for RFID systems and services in the range of $3 billion to $4 billion for the same 18 month period.

A look back: investment profiles

Investments include $.7 billion of transactions in which firms acquired other firms. The largest acquisition was Lockheed Martin’s acquisition of active RFID systems provider Savi Technology. Investments also include $.4 billion of venture funding and private equity funding, with the firm Alien Technology topping the list of firms attracting the most equity investment capital. There were no IPO transactions – Alien Technology announced an IPO in April 2006, but withdrew its plans for that IPO in July 2006.

The majority of investment funding came from corporations with RFID technology initiatives. Corporate investors placed 67 percent of the investments. Private equity firms and venture capital funds placed 33 percent of the investments in RFID companies.

A total of 59 investment transactions resulted in an average of $19 million per transaction. Some of the 59 investment transactions involved parties that did not disclose a transaction value. Taking into account the transactions without a disclosed value, the average transaction value was more likely to be in the $20-$25 million range.

Systems provider firms and equipment companies have attracted the most capital among RFID technology firms over the last 18 months. Providers of RFID equipment and RFID tags attracted 86 percent of the investments. These firms provide RFID equipment in the form of tags, interrogation devices, real time location systems and contactless cards. Software firms, providing RFID software, middleware and business analytics, received 8 percent of the investments. Service firms, providing systems integration services, received 6 percent of the investments.


A look forward: segments likely to receive investment in the next 18 months

“Companies attract investment capital by having customers, cash flow and growth potential,” said Mark Johnson, president of RFID Tribe. “Real time location systems (RTLS) and active RFID technologies for asset tracking applications have attracted a healthy amount of investment in the last 18 months,” he continued. RTLS technology and active RFID technology firms Ekahau, IDENTEC SOLUTIONS, PanGo Networks and WhereNet have attracted investment in the last 18 months. .

Industries like consumer electronics, apparel and pharmaceuticals have demonstrated a desire to track and trace their goods. Products in these industries often have high value, run at high volume and are targets of theft or counterfeiting activities. Item-level tagging allows companies to track products at a more granular level than tracking at the case, pallet or vehicle level. Firms that enable item-level tagging applications will see increased investment.

Communications providers will show interest in payment applications tied to cell phones. The area of near field communications (NFC) applications is emerging as an area of innovation attractive to investors. NFC applications enable cell phone users to make mobile payments and micro payments using their cellular device. Look for communications equipment providers like Nokia, Samsung, Qualcomm and Motorola and for payment providers like VISA, MasterCard and American Express to make investments in mobile payment applications.

As EPCglobal’s EPC Information Services (EPCIS) standards evolve, they will facilitate use of the EPCglobal network. RFID technology firms designing products and services to use the EPCglobal network show substantial promise. RFID applications using the EPCglobal network focus on supply chain optimization – reducing out-of-stocks, reducing inventory, increasing sales and increasing the effectiveness of sales promotions.

Unique identification (known as UID) applications have significant potential. The US Department of Defense (DoD) uses UID in its supply chain and focuses its suppliers on UID applications. Suppliers to the US military look for UID applications to comply with US DoD supply chain initiatives.

A number of end-user firms are making investments in RFID technology companies. Firms like UPS, Pfizer and Kaiser Permanente have made investments in RFID companies hoping to enhance their strategic position by placing bets on promising applications of RFID technology. “When end users invest in technology firms, they are investing in technologies that may be of strategic value to their company," said Johnson

More information regarding the $1.1 billion of RFID investments – profiles for firms who received investment, investors who made the investments and transaction details are available at the RFID Investment Center at http://www.rfidtribe.com/investment_center.html


RFID Investment Summit

In-depth dialogue regarding RFID investment trends, uncovering RFID investment opportunities and showcasing some of the RFID firms seeking investment takes place at the RFID Investment Summit on March 26, 2007. The RFID Investment Summit is held at the RFID World 2007 Conference and hosted by RFID Tribe. Investors, corporate directors of business development and CEO's meet to discuss RFID technology investments and to tell their unique story around value proposition and intellectual property. More information about the RFID Investment Summit may be found at http://www.rfidtribe.com/investment_summit.html.

RFID Tribe is a community where entrepreneurs, corporate investors and private investors trade ideas regarding founding, funding and growing RFID firms. RFID Tribe tracks details on investments in RFID companies, researches trends in RFID technology investments and hosts the RFID Investment Center. (www.rfidtribe.org)

RFID Tribe, a global organization with local chapters, is the world's association for radio
frequency identification (RFID) professionals. The group of industry experts collaborates on RFID and sensor technology, standards, venture capital, products, applications, industry trends, people and events. RFID Tribe serves as an engine for ideas, people and capital.

RFID Tribe - Where the World's RFID Community Shares Ideas.

www.rfidtribe.org

Mark Johnson

RFID Tribe
3212 Wells Dr.
Plano, TX 75093

214.808.1352

info(at)rfidtribe.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release RFID Technology Firms Win Investors here

News-ID: 16099 • Views: 1841

More Releases from RFID Tribe

RFID Primer: Learn Your RFID ABC’s, Dig Deeper
Association for RFID professionals creates a RFID reference tool Dallas, Texas (December 26, 2007) -- After establishing a network of 3,500 members in more than 65 countries around the world, RFID Tribe created the RFID Primer. The online tool serves as a reference for those who use RFID technology and RFID applications. “The RFID Primer represents a knowledge base for the RFID community, aiding in a deeper understanding
A Brief Introduction to Low Level Reader Protocol (LLRP)
UHF RFID readers perform certain stereotypical functions, which are common to the products from most vendors but in some cases specific to the air-interface protocol employed. In this article we briefly summarize the basic operations of a reader using the EPCglobal Class 1 Generation 2 (ISO 18000-6C) protocol, and describe how such readers can be configured and controlled using the Low Level Reader Protocol. Complete article... http://www.rfidtribe.com/home/index.php?option=com_content&task=view&id=138 RFID Tribe 3212 Wells Drive Plano,
RFID Tribe's Montreal Chapter Holds First Meeting
RFID Tribe\'s Montreal chapter holds its first meeting on September 5, 2007 at 6:00 pm. Harold Beck, Montreal chapter leader, will kickoff the chapter\'s first meeting. The meeting is patterned after meetings in RFID Tribe\'s other chapters where RFID professionals make connections, hear presentations, eat a meal together and collaborate. At the meeting, RFID Tribe members and guests will... - Learn about taking advantage of RFID Tribe tools and forums.
RFID Tribe Launches Its Montreal Chapter
Business Activity Accelerates with Radio Frequency Identification Community Forum Montreal, Quebec (August 8, 2007) -- RFID Tribe, a global organization with local chapters, launches its Montreal, Canada chapter. \"RFID Tribe is a vehicle for connecting, communicating and collaborating around RFID technology\" said Mark Johnson, RFID Tribe President. \"The province of Quebec has an excellent mixture of industry, academia and government organizations with initiatives in RFID and sensor technology. A group like RFID

All 5 Releases


More Releases for Investment

Investment Casting Market
The demand within the global market for investment calling has been expanding on account of the need for metallic devices and objects across several industries. Investment casting is amongst the oldest techniques for the manufacture of well-defined and properly shaped metallic objects, and this technique is also known as lost-wax casting A mould of the desired metallic alloy is formed around a wax structure that is later melted to leave
Brazilian Investment Beats Crisis
Obelisk International News, Marbella, Spain, October 24 2011. With most of Europe in financial and economic straits, Brazil beckons as the place for investment opportunities. The country is well set to weather the global crisis and may even benefit from it, a huge plus for Brazilian investments. Based on Moody’s latest comments on the Brazilian economy, the Financial Times (FT) blog beyondbrics claims Brazil is the best place to beat the
Brazilian Investment Confidence Grows
Confidence in Brazilian investments continues to grow. Both Brazilian executives and foreign investors are bullish on the prospects for investment in Brazil. Ernst & Young’s latest Capital Confidence Barometer for Brazil finds the majority of survey respondents optimistic about the immediate future for investments in Brazil. Published last month, the Barometer summarises survey replies from over 1,000 executives. More Pluses Than Minuses In the Perspectives section, the Barometer lists the reasons behind the
Goldhill Associates Investment Guide
Alternative investment guide from Goldhill Associates to help out in this process of choosing best investment strategy. Here at Goldhill Associates it is our mission to ensure that we maintain our streamlined system and to become a leader in the market sector of global financial advisory services, and that we all as a collective must do our utmost to help our clients to first attain their financial goals and then to
Gold Investment Advice
Eldora Gold Advise - When gold is found join the gold rush, it would be an investment that would make you rich! In the following article, we give you some more gold investment advice, with each detail explained to keep away from scams, fraud on investment by boiler rooms. Eldora Resources Tips: There are several reasons, why gold is so expensive, point one, it is one of the rarest elements. Two,
Handy Property Investment Tips
There are different types of investments that one can make if they are looking out for multiplying their money.And real estate investing is one such avenue that offers great returns to the investors.Real Estate Investing made a foray into the investment sector with a premise that it is going to give helpful tips to the investor so that they could kick start their investment property and make decent profits when