ADT Invests $25 Million In Startup, Gets Insulted By Startup CEO

Most amazing part of the investment is that the CEO of the startup insults ADT, after receiving the money:

"The big problem with ADT is that people are paying $50 a month and they’re not using it. They realized that the future of security isn’t just on the home but that follows you around, and we’re enabling all of that for them."

That's how much ADT is respected.


The startup is Life360, and here is a 90 second video on what they are doing:

It's an app that lets you know where your family members are plus allows you to chat with them. They claim 40 million total families using it or at least registered or claimed, whatever one may believe.

People seem to like it as they have 170,000+ Google Play store reviews with an average of 4+ stars.

Funding and Revenue

Life360 has raised over $75 million, mostly recently a $50 million round where ADT contributed 1/2.

Almost no one is actually paying for this but Life360 has added a Premium tier for $50 per year that adds 24/7 live assistance, roadside assistance, unlimited 'places' and $100 if your phone is stolen.

What Do You Think?

Vote now:

This is foolish of ADT for serveral reasons: First, it seems everything Life360 offers is already offerred free, or as an included service, by others (Find my Friends, Find my iPhone, etc,). I do not see how they can make money with this. The fact that it is run by a brash dude who doesn't seem to know which side his bread is buttered on, makes it all the more foolish.

That said, I respect the CEO's novel approach to patent trolls.

Good find on the patent troll response.

However, addressing the 'troll' as a 'piece of shit' is immature and his plan, to "take this fight the duration, invalidate the patent, and make sure they can’t do this to anyone else," is imprudent.

The guy runs a company that makes less revenue than a neighborhood pizzeria at the peak of a bubble. Maybe he should be more focused on turning this into a business.

There's also "Watch Over Me", which we use in my household, along with "Find Friends". We use these apps because we travel a lot and its a safety net for piece of mind when one hasn't contacted the other in whatever prearranged timeframe. Having been in this profession as long as I have, safety and security is paramount in our household as I'm sure for others.

I'm surprised at the number of votes rated "stupid". I don't know if most think the that- (A) whole idea of locating loved ones is stupid or, (B) everyone thought it was stupid because there are so many similar free apps out there already and ADT invested $25 million. I'm going to lean towards (B) personally because that was my initial reaction.

It is B.

Like others mention, there is nothing terribly novel about the offering here.

Maybe Life360's CEO should rip ADT for heavily investing in 'me-too' startups.

Insult me all day long, just make money for me.

Even if all their features are duplicated by other apps, there's no app that duplicates all their functions, and, to me, that seems valuable.

Ari, do you tell the press that your bosses are a bunch of idiots? And if you do, would they keep you, simply because you were making money for them?

I'm not sure that insulting an investor is quite analogous to insulting a boss. Both are stupid, but one is extraordinarily stupid, and one is just regular stupid.

Insult me all day long, just make money for me.

Ideally one would do the second part before the first...

I'm no fan of ADT - however I fail to see the insult - it was worded poorly.

The guy is pointing out that ADT customers are not using the full capabilities of what is out there (at least now, through the magic of Life360 ) -<sarcasm intended>

He really should have stated that his company offers greater security options outside the home where as before ADT was only really effective in securing the premesis or those within it.

Im not an apologist for ADT, I detest them - however this is small change for them if they can find a way to charge even $5 more a month for customers that want an integrated security system for their life.

Scott, good feedback!

Btw, from what I read, ADT is looking at this as a lead generation source, i.e., people who actively use Life360 are high probability targets for ADT security systems.

I am sure they have hopes for other tie-ins.

Yes. I am sure they wouldnt spend $25 million to peek at a potential mailing list.

of course, it is ADT - anything is possible.