According to a study by Technologiestiftung Berlin (Berlin Technology Foundation), the capital of Germany is home to most of the IoT start-ups in the country. This trend will likely continue because many corporations, incubators, accelerators and venture capitalists in Berlin are supporting IoT start-ups. The main focus of these start-ups includes mobility and manufacturing, IoT devices, platforms, and IoT services. Despite these developments, IoT technologies and services are not widespread, and the potential of IoT-based business models is just starting to take root. To develop this potential further, the Federal Ministry for Economic Affairs and Energy awarded Berlin funding for an IoT hub within the framework of the "Digitization Hubs in Germany" initiative. What benefits and opportunities can be expected by concentrating on Berlin? What are the potential risks?