Arecont Monster Raise - $80 Million

By John Honovich, Published Dec 01, 2014, 12:00am EST (Info+)

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.

Comments (0)

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports