3VR Sales And Marketing Execs Out, Company Shifting

Author: Brian Karas, Published on Nov 22, 2016

Two executives are out at 3VR, both after relatively short tenures at the company.

3VR's CEO says this is part of a shift to cover new markets. This shift could be due in part to their stagnant sales growth in recent years, and may also explain their recent debt financing, which we detail in this report, along with our outlook for 3VR.

*** ********** *** *** ** ***, **** ***** ********** ***** tenures ** *** *******.

***'* *** **** **** ** **** ** * ***** ** cover *** *******. **** ***** ***** ** *** ** **** to ***** ******** ***** ****** ** ****** *****, *** *** also ******* ***** ****** **** *********, ***** ** ****** ** this ******, ***** **** *** ******* *** ***.

[***************]

Exits ********

**** ************** ** **** ** *** ****** *****, ***** *** ******** VP ** ***** *** *******.**** ************ *** ******* ** ******** **** ** *** ********* *** Operations. **** **** **** *** ******* ****** *** **** ******* months, ****** ******** *** *** *** ******* *** ******** *******. Neither ******** *** ** *** *** * ************ **** ****** of ****, ******** ** **** *********-***** *********. ******* *** **** replaced.

************, ** ******* ****, ******** * ***** ********, **** *********** ******. ****** **** ****** * ******, ***** ** *** ** March.

***'* ***,** *****, ********* ***** ***** **** *** *** ******* ** ******* at *** *******, *** ***** *** ******* ******* ** **** led ** ***** **********.

Focusing ** *** **********

***'* *** **** ****: "** *** ******** *** *** ******** ** ***** *** ********* emerging ********** **** * ** *** ***** ** ******* **", when ***** *** ******* ***** *** ********* **** *** ** Spillane *** ****** ******* *** *******. ** **** ***** ** said "** ***, ** ****, ***** ****** ********* *********** **** ** the ****** **********."

Struggles ** ***

********* ** ******* ***** ** *** *******, *** *** ********* to ****** ********* *** **** *** ***********, **** ******* ***** stuck ****** $*** *** *** **** ******* *****. ************, ******* felt *** ***** ************ *** **** **** ** *********** ************, with ********** ******* ** ******* ****** **** ** ******** ******* that *** ******* ***** ** ***.

*** *** ************ **** * *******-****** *** **** ********* ************. However, ***** *** ************* ** *** ********** ******** ** ***** products, *** ***** ********* *** *** ** **** ** ** add-on ** ***** *****, ***** ******** ********* ** *** **** the **** *** ********. **** ******** ****** ***** ****** ************* primarily ** ********* **** ** ******** ********, ** ***** ******* to *********** ** ***.

New **** *********

** ******** ****,*** ******* $*.** ** **** *********. **** ***** ***** **$** **** ***** ** ******* ****. ******** ****** ** ****, ** ******, ******* ***** ** happen **** ********* *** ****** ** **** ***** *********, *** still **** ********** *******. ** *** ******* ***** *** *********, investors *** **** ******* ** ***** ** *** ******, ** this ******* ***** ******* **********. **** **** ********* ** ******* indication **** *** *** ********* ** ****** ***** ** ******** their ***** *** ******** ****** ******* ** **** ******.

Emerging ********

******* **** **** *** **** ****** ***** ** ****** * more ****-******** ********, ********** ***** ****** ********* ** ****** ** offering ***** *** ***** ** ***** *******. ***'* *******,***** *******, **** *** ******* ** ***** ***** ******* ** ****. SaaS ********* *** ***** ********** **** ****** *** ******** ********, and *** **** ** ******** **** ****** ************* *** ******** retention ******** **** *** *********** ******** ***** ******* **** *** has **** *********. ***** **** *** ***** ****** ***** ** find ** **** *** *** *********, **** ***** **** ***** the ********* ** *** ******* *** **** ** ** *********** target.

Outlook *** ***

***'* ******* ** *** ********** *** ** ********, ** **** will **** ** ******** ** ***** **** ********* ************* ******** ********* *** ********. **** ** * *********** ******** to ** ** *** * ******* **** *** ** ***** on ******* ** ****** ** ******** *** ********* *** *********. Coupled **** *** **** ** ******* *** ********* **** ** the **** ****, ** ** ******** **** *** **** ** able ** ******* * ***** ****-****** *** ****** ** * significant ******, *** **** *** ** **** ** **** * niche **** **** *** ** ********** **, ** **** **** in *** ****. ***** ******** ******* ******* ** ***** ****** accounts ***** ******* **** **** ******* ** ****** ******** *********, as **** ** ***** ********* *** ******* ** ** ********* business **** ***.

Comments (8)

If the company value has stagnated, investors are less willing to bring in new equity, as this dilutes their overall investment.

On the other hand if they are expanding, "building a company with maximal short term debt provides greater financial benefits to the smaller amount of equity held." J.H.

So maybe equity is not preferred by either stagnant or growing companies?

#1, your citation is for the context of Dahua who has grown more than 400% in the past 5 years and is one of the fastest growing companies in the industry. Yes, debt can make sense if you are growing fast.

3VR's case is different, growth is basically nil, so debt is primarily to stay alive.

Obviously, I am not endorsing Dahua's overseas strategy, as our ongoing criticism of their operations has shown but they have clearly have strength within China, far more than 3VR does in the US.

3VR's case is different, growth is basically nil, so debt is primarily to stay alive.

Yes, this is what I'm saying, much different cases, yet same solution is preferred by owners: debt over equity.

What makes you say that debt financing was the preferred model in 3VR's case?

My personal experience with smaller/startup type companies (though 3VR is well past "startup" stage by most measures, they are still operating as investor subsidized) is that debt is rarely "preferred".

Debt is more commonly used as a bridge loan while trying to raise equity, or when the company is unable to raise equity, but still needs money to finance operations. Both of these scenarios are a bit "up against the wall" in terms of what the "preferred" approach would be.

Raising equity without growth in valuation often creates contention between the company and existing investors, as the terms will commonly be less than ideal (dilution for existing investors, lead investors being able to dictate highly preferential terms that make it hard to raise future money, etc.). This leaves debt as a last resort, or at the very least a less desirable way to get cash.

What makes you say that debt financing was the preferred model in 3VR's case?

I was only agreeing with you,

If the company value has stagnated, investors are less willing to bring in new equity, as this dilutes their overall investment.

that investors prefer not to be diluted.

They would seem to be a buyout target for a company like Axis? Avigilon? Flir? Genetec? If they have strength in the area of Retail with POS and Analytics, any of those companies with either a presence or interest in the retail vertical could gain from their IP and possibly their customer base?

They would seem to be a buyout target for a company like Axis? Avigilon? Flir? Genetec?

The problem for a 3VR buyout is that they are a tight coupling of VMS and video analytics.

For example, Axis bought Cognimatics because Cognimatics was designed to be an analytics only plug in to Axis, which made the offerings highly complimentary.

Let's say those companies wanted 3VR's retail offering, they would most likely not want the VMS since they all have their own, making a deal and integration a lot more complicated.

The most likely model for 3VR's acquisition is the Aimetis deal by Magal S3, more of an 'outside' company that does not already have VMS / analytics.

Interesting article on Silicon Valley companies raising debt here. One CEO explained terms:

The offers had interest rates ranging from 9 percent to 15 percent over two to five years, and the terms protecting the lenders varied. Financial covenants, especially ones permitting the lender to take control of the startup, were sometimes stringent.

One lender had a clause that would force Metamarkets to pay off the debt early if it failed to hit 80 percent of its revenue projection. Driscoll passed on that, opting instead for cleaner terms for a $14.25 million loan in October at around a 14 percent rate from Wellington Financial and City National Bank.

That's approaching consumer credit card interest rates.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Ex-Integrator Now Growth Strategist Interviewed on Apr 24, 2019
For more than a decade, Scot MacTaggart was a security integrator (at PA-based PSX). In late 2018, he left the industry. He is now a Growth...
The Embarrassing Story of ISC West's Best New IP Camera on Apr 24, 2019
A sad but simple situation: Only 2 companies paid SIA the thousands of dollars required to compete for the best new 'cameras IP' The judges...
19 Facial Recognition Providers Profiled on Apr 23, 2019
IPVM interviewed 19 facial recognition providers at ISC West to understand their claimed accuracy, success and positioning. 9 from China, where...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...
Speco Ultra Intensifier Tested on Apr 22, 2019
While ISC West 2019 named Speco's Ultra Intensifier the best new "Video Surveillance Cameras IP", IPVM testing shows the camera suffers from...
Arecont Favorability Results 2019 on Apr 22, 2019
Arecont's net negativity remained the same in IPVM's 2019 integrator study, though integrator's feeling became relatively more neutral compared to...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...
Securadyne CEO: IPVM 'Entertaining For An Ignorant Few' on Apr 16, 2019
Securadyne's CEO Carey Boethel is unhappy with IPVM's report - Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied. Indeed, he...
Strong ISC West 2019 For Manufacturers But Concerns For 2020 March Move on Apr 16, 2019
ISC West 2019 was strong for manufacturers, according to new IPVM survey results of 100+ manufacturers, consistent with 2018 results. However,...
Alarm.com Favorability Results 2019 on Apr 15, 2019
The once dot com startup has evolved to become a core provider for home security and is now expanding into commercial. In their first entry in...

Most Recent Industry Reports

Verkada Salesman: IPVM "Stuck In A The Stone Age" on Apr 25, 2019
Verkada is 'tackling dinosaurs' and battling those, like IPVM, who are 'stuck in a the stone age'. Verkada's recent sales recruiting promotion...
The HIVIDEO $31 Face Detection DVR Tested on Apr 25, 2019
Face detection in a $31 DVR? That is what "HIVIDEO" (not to be confused with Hikvision, even if the company intends to do that) was promoting at...
Amazon Marketing Pro Installs of Amazon Security Systems on Apr 25, 2019
Is Amazon a threat to conventional providers like ADT, Vivint and Brinks Home Security? Many say no. Now, Amazon is advertising free in-home...
Ex-Integrator Now Growth Strategist Interviewed on Apr 24, 2019
For more than a decade, Scot MacTaggart was a security integrator (at PA-based PSX). In late 2018, he left the industry. He is now a Growth...
19 Facial Recognition Providers Profiled on Apr 23, 2019
IPVM interviewed 19 facial recognition providers at ISC West to understand their claimed accuracy, success and positioning. 9 from China, where...
Locking Down Network Connections Guide on Apr 23, 2019
Accidents and inside attacks are risks when network connections are not locked down. Security and video surveillance systems should be protected...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...
Speco Ultra Intensifier Tested on Apr 22, 2019
While ISC West 2019 named Speco's Ultra Intensifier the best new "Video Surveillance Cameras IP", IPVM testing shows the camera suffers from...
Arecont Favorability Results 2019 on Apr 22, 2019
Arecont's net negativity remained the same in IPVM's 2019 integrator study, though integrator's feeling became relatively more neutral compared to...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact