2 Ways to Invest in the Wireless Revolution
Most people thought Matt Rogers and Tony Fadell were crazy to leave Apple (NASDAQ: AAPL) in 2010 to try and start-up a small company focused on wireless home automation. Without any initial startup funding, the two bootstrapped a prototype thermostat that they eventually used to raise money from Google (NASDAQ:GOOG) and other investors. Over the next three years, the two grew the company to over 200 employees and shipped between 40,000 and 50,000 thermostats per month.
In January, Google acquired the wireless “internet of things” company for a lofty $3.2 billion. The move provides Google with a way to capitalize on a new wireless revolution that’s changing the way that people interact with technology. Nest’s focus on thermostats and smoke detectors represents just a tiny fraction of the market, but with a $3.2 billion valuation, it underscores just how large the relatively untapped market is for investors.
In this article, we’ll take a look at three ways to invest in companies like Nest that are using wireless technologies to disrupt some very large industries.
Capitalizing on Wireless Healthcare
Most people are familiar with how diabetes patients operate on a daily basis. After using a blood glucose meter to measure blood sugar levels, they may inject themselves with an insulin shot in order to stabilize the body’s metabolism. Wireless technologies are starting to revolutionize markets like these by automating certain tasks that would otherwise require error-prone human intervention, such as giving insulin shots after a reading.
Johnson & Johnson’s (NYSE:JNJ) OneTouch Ping is the first full feature insulin pump that wirelessly communicates with a blood glucose meter remote. Using the blood glucose meter alone, patients can opt to wirelessly deliver insulin doses without touching the pump at all, giving them more freedom, discretion, and flexibility. The process also removes some of the potential for errors that can hamper the effectiveness of treatment.