3VR Raises $17 Million

Author: John Honovich, Published on Dec 20, 2010

In one of the largest VC investments ever for a video recorder/analytics company, 3VR announced a $17 Million investment (see filed SEC Form D). This follows an August 2009 $12 Million investment bringing the total raised to approximately $60 Million (since inception in 2002). During the last investment, 3VR was projecting total 2009 revenue of approximately $15 - $20 Million.

In a conversation, 3VR noted the following points on its new funding / positioning:

  • 3VR reports that 2010 sales are roughly double 2009 sales. 3VR did not disclose a specific sales number nor range and it is not feasible to accurately guess with known public information.
  • Developing their sales channel will be the most important use of the funding. Through integrator partnerships, 3VR will look to expand sales globally and to new channels (such as healthcare, hospitality and critical infrastructure). Historically 3VR primarily focused on banking and retail in North America.
  • With the new funding, 3VR is open to acquiring technology/companies but currently has no specific plans or intentions. This is in addition to ongoing partnership development such as the December 2010 partnership with HTS for ANPR.
  • 3VR is looking to expand the use of their offerings as data mining / business intelligent solutions. While many have promoted such efforts, we've yet to see substantial sales traction for this type of solution.

A few general observations:

  • While there are a handful of companies who embed analytics/intelligence inside their recorders/VMS, there's no clear competitive comparison (at least among well funded surveillance companies). Given the surveillance market's focus on software only (Genetec, Milestone, DvTel, etc.), relative to the industry, 3VR's approach is quite contrarian. 3VR's core competitive advantage is deeply embedding their own video analytics inside of their video recorders.
  • Considering the company's high valuation (probably $100 Million or more), it is unlikely that 3VR will be acquired by security/surveillance companies as those companies generally have competing recorders and have difficulty justifying high multiple purchases.
  • We would expect 3VR is targeting acquisition by an IT or 'non-traditional' security provider who can easily justify much higher valuation / multiples.
  • Relative to the market size and revenue potential of the video surveillance market, $60 Million in investment is quite high. Maybe the overall global surveillance market is $8-$10 Billion, the market for recording is a few billion (depending on how you segment). Within that, nobody is truly dominant and even the 'leading' companies are generating $30-$40 Million in revenue (e.g., Genetec financials).

For background on 3VR, see their products overview and for in-depth details, their A&E package. Additionally, review our historical coverage on 3VR facial recognition performance.

Comments : PRO Members only. Login. or Join.

Related Reports

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...
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...
ISC West 2019 Report on Apr 12, 2019
The IPVM team has finished at the Sands looking at what companies are offering and how they are changing their positioning. See below for 50+...
UK Installer CCTV Aware - Flat Pricing, No Salespeople on Apr 10, 2019
This is a different kind of company. They do flat pricing, they do not have any salespeople and 50% of their sales are sold and booked...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 09, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...
Startup iryx Launches, Led by Ex-Arecont and FLIR Executives on Apr 04, 2019
Suddenly, the video surveillance industry is witnessing a new wave of startups. Now launching is iryx, a startup led by veterans of 2 of the...
Airship VMS Profile on Apr 03, 2019
Airship has been developing VMS software for over 10 years, however, with no outside investment, and minimal marketing, the company is not well...
Dahua Favorability Results 2019 on Apr 01, 2019
Dahua favorability declined, in IPVM's 2019 integrator favorability series, driven by their backdoors, resulting in mass hacking and US government...
Silicon Valley Access Startup Proxy Raises $13.6 Million on Mar 28, 2019
This mobile-credential based access startup just raised $13.6 million in funding.  Further, they claim that their technology can free businesses...

Most Recent Industry Reports

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...
Door Operators Access Control Tutorial on Apr 17, 2019
Doors equipped with door operators, specialty devices that automate opening and closing, tend to be quite complex. The mechanisms needed to...
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...
Dahua Repositionable IR Multi-Imager Camera Tested on Apr 16, 2019
Dahua has released their first repositionable multi-imager camera, the Multi-Flex 4x2MP, claiming integrated IR, true WDR, and flexible...
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,...
Axis Supports HD Analog on Apr 15, 2019
In 2017, Axis declared 'Everything is IP': Now, in 2019, Axis has released support for HD analog, with their new encoders.  Why the change?...
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...
UK Camera Commissioner Calls for Regulating Facial Recognition on Apr 15, 2019
IPVM interviewed Tony Porter, the UK’s surveillance camera commissioner after he recently called for regulations on facial recognition in the...
ISC West 2019 Report on Apr 12, 2019
The IPVM team has finished at the Sands looking at what companies are offering and how they are changing their positioning. See below for 50+...
Pole Mount Camera Installation Guide on Apr 11, 2019
Poles are a popular but challenging choice for deploying surveillance cameras outdoors. Poles are indispensable for putting cameras at the right...

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