Named a “Mobile IoT Innovator” by GSMA (the global system for mobile communications), Momentum IoT completely changes the fleet management industry through its cloud-managed telemetrics tracking solutions. This product was created to help small and mid-sized fleet managers, that have anywhere from 10-100 vehicles, locate and manage their trucks, trailers, heavy and light equipment to optimize their operations.
LA TechWatch chatted with Momentum IoT CEO and founder Justin Silva to discuss advancing the telemetrics industry and Momentum’s recent funding round.
Who were your investors and how much did you raise?
We raised from Howard Edmund Capital and Thompson Aerospace. It was a Seed round of $3.1M.
Tell us about the product or service Momentum IoT offers.
Momentum IoT helps small and mid-sized fleet managers locate and manage their trucks, trailers, heavy and light equipment with kickass 4th generation GPS and telematics tracking solutions. Based in Long Beach, CA, Momentum IoT was recently named a “Mobile IoT Innovator” by the GSMA.
They have the highest value for the lowest cost in the industry. They plug-in and go, with no wiring. The goal is to be truly hassle-free. This compares to complexity from other vendors, both in terms of device complexity and sale complexity. Most telematics is still sold in an enterprise sales model and is not easy to launch.
What inspired you to start Momentum IoT?
We managed technology at a large field services operation. We were disappointed with other solutions we found for tracking mixed fleets, so we built it ourselves. By doing that, we were able to build a solution which was super-simple, cloud-managed, and on the newest networks. That meant lower cost and advanced capabilities.
How is Momentum IoT different?
Our tracking devices use the latest network protocol: LTE-M. This network was optimized for telematics. The devices we built are 100% cloud-managed, which means less moving parts and no bugs. They are self-provisioned, and self-healing. This is the trend in every hardware category, but it’s been slow to come to telematics. We’re making it happen.
What market is Momentum IoT in and how big is it?
We serve field services managers with 10-100 vehicles. Typically, we serve fleets with mixed assets, including trucks, trailers, heavy and light equipment.
What’s your business model?
We charge $10/month per connected asset. We have no contract, no lock-in, no data silo. We also integrate other hardware devices, if our clients have them, for $1/month.
What was the funding process like?
Our investors were brought in by our first client, so that helped a lot. The value was already evident.
What are the biggest challenges that you faced while raising capital?
Hiring top talent is always a challenge. Developing hardware while raising was time-consuming, but worthwhile.
What factors about your business led your investors to write the check?
We were also helped by having a big market opportunity we’re addressing. Also, our investors had experience in the market, so they had seen what the competitors offered. That helped.
What are the milestones you plan to achieve in the next six months?
We are shipping now. We are announcing LTE-M devices. We will make feature additions in the coming months. And we will add yet another network feature, which we are not disclosing yet.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Solve a big problem, and the money will come.
Where do you see the company going now over the near term?
We will likely outgrow our space, which is in the Long Beach harbor area. But we will continue to build and will stay in Long Beach for the long term. No plans to move outside the area. Our investors are also based in Southern California, so there is no pull to go north. Since we serve small and mid-sized fleets and field services, we are not at a disadvantage geographically.
We will continue to build and will stay in Long Beach for the long term. No plans to move outside the area. Our investors are also based in Southern California, so there is no pull to go north. Since we serve small and mid-sized fleets and field services, we are not at a disadvantage geographically.
What is your favorite restaurant in LA?
Rocco’s Italian Deli, a New York-based deli in Signal Hill. When I was just starting my new company, I was commuting by air down from San Francisco twice a week. I ate every lunch at Rocco’s. So one time, the owner sees me and tells me, “Justin, you live 400 miles away, and you’re my best customer!” And it’s true. Rocco’s rocks! The place is just authentic. A real hot and cold meat sandwich deli. Come join me.