Arecont Monster Raise - $80 Million
In the biggest private surveillance industry fundraising event, Arecont Vision has raised $80 million.
However, they have taken an extremely unconventional approach that will likely do more to hurt their future growth than empower it.
In this note, we examine the financial details and explain the pros and cons of the raise.
Debt *****
***** *** ****** *****, **** ** ** $** ******* debt *****, *** ******, *.*., ******* has ** *** **** ***.
Payout ** ******** / ************
*** **** ** ***** **** ** pay ************. ********* ** *** ******, $37.2 ******* ** ** ** ***** paid *** ** ********** / *********, most ******* *** ******* ********* [**** no ****** *********] *** ********* ******** Berezin [**** ** ****** *********].
** ******* *** ******* ** *** majority ** ***** **** ** ***** investors ** **** ** ********* / former ********* *** **** ******.
Pay *** ******* *******
*** *** ****** ** ******* ** that **** *** **** ******* ****** to **** *** *******. **** ******* tell ** **** ******* ****** *** been ******** *** **** *** * number ** ***** *** **** *** price ******* *** ***** **** ****** to ******** * ****.
***, *** *** *********** *** ************* cash *** **** *** *** ****** of ******* *** ******* ** *** future ** * **** ********* **** comes ******.
Downsides - ************ *** **** *******
*** ******** ** **** *** *********** will ********* ******** ************, **** ******, ****** **** ****** requirements.
**** ***** ** $** ** $** million ** ****** **** ******** ******** a * - **-**** **** *** the ****. **** ***** ******* ***** a *********** ****** ** **** ********* to ****** **** **** ****** **** growing *** *******.
** ********* *******, *** **** **** deals ** ***** ** '********* ****************' *** *** ** *** *** risks ** **** ** *** "**** a ******* ** ***** ** *****-**** projects **** ******** **** (** *** off *** **** *** ******** ********), which ** **** ***** *** ******* to **** *** ********* *****."
Arecont's *********
*******'* ******** ******** ** ***** *****-****** offerings (*.*, *** ****), ***** ****** *** ******** *** the ******** ** ***** *******. ** also ******* ** ******** **** *** direct ***********. **** ************* ****** ** be ******* ** *****-****** *********** (**** and ** *** ********** **** *****) but ** ******* *** *** **** Arecont ******* * *********** *********** ********* here.
Arecont's **********
*******'* * ******* ******** ** ***** reputation *** **** ******* (*.*.,*,*,*) *** *** ******** ****** *** low **** **** ** *********. *********** *** ****, *** ******* ******** **% ****** growth, ******** ** **** ***** $** million ** **** $** ******* ** revenue. *******, ***** ****, *** *******'* growth **** *** **** ***** **% (2011 ****** *** **% [**** ** longer *********] *** **** / **** growth ****** **** ** **** **** $100 ******* ****** *******, ***** ** the *** ******).
******* ******** **** ********* **** ****. The ****** *******, ***, ******, ** that **** ***-**** ************* ***** **, 3MP *** *** ******* *** ************* less **** ******* (*.*., ****, *******, Dahua *** *********).
Overall *******
*** **** **** ** * *** win *** *******'* ******** *** ************ as **** *** ** ************* **** out.
*******, *** ****** **** ********* **** constrain ******. *** *******'* ********** *** never *** * ******** ******* **********, so ******* **** *** ******* ************ their ******* *****.
**********, ******, **** ** ******* **** deal, *******'* ******* ********* **** ** how ** **** *** ***** ** low-cost ********* *** *** *********** ***** historical *********** ***********.
****: **** ******* *******'* ********** **** for ******* ** **** **** **** but *** *** ******** * ********. We **** ****** ** **** ******* one.