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

Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Honeywell Hides Selling US Gov Banned Chinese Video Surveillance on Oct 10, 2018
Honeywell hides selling US government banned Chinese video surveillance as their own 'Honeywell' products, deceiving buyers and putting US security...
UTC Merges Lenel and S2, Creates LenelS2 on Oct 03, 2018
UTC has completed the acquisition of S2, launching literally Lenel's2 LenelS2 with UTC declaring that "LenelS2 unites two world-class teams with...
Hikvision USA Starts Layoffs on Sep 18, 2018
Hikvision USA has started layoffs, just weeks after the US government ban was passed into law. Inside this note, we examine: The important...
Favorite Intercom Manufacturers 2018 on Sep 14, 2018
Intercoms are certainly increasing in popularity, driven by the integration of video and IP networking. But who is the favorite? On the one side,...
VMS Export Shootout - Avigilon, Dahua, Exacq, Genetec, Hikvision, Milestone on Sep 13, 2018
When crimes, accidents or problems occur, exporting video from one's video surveillance system is critical to proving incidents. But who does it...
US DARPA Investing $2 Billion In AI on Sep 11, 2018
The US Defense Advanced Research Projects Agency (DARPA) is granting more than $2 Billion to companies developing new AI technologies. The money...

Most Recent Industry Reports

Startup SafePass Profile on Oct 19, 2018
A major problem with visitor management is that the systems mostly require adhesive printed paper labels and paper logs, creating waste and an...
China Is Not A Security Megatrend, Says SIA on Oct 19, 2018
The US Security Industry Association has released its 10 "Security Megatrends" for 2019. SIA declares that these megatrends, such as "Advanced...
Hanwha Dual Imager Dome Camera Tested (PNM-7000VD) on Oct 18, 2018
Hanwha has introduced their first dual-imager model, the PNM-7000VD, a twin 1080p model featuring independently positionable sensors and a snap-in...
Camera Height / Blind Spot Added to IPVM Camera Calculator on Oct 18, 2018
IPVM has added camera height and blind spot estimation to the Camera Calculator. This is especially helpful for those who need to mount cameras up...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...

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