Dropcam 2012 Funding

By: John Honovich, Published on Jul 16, 2012

Not even a year after getting the biggest funding ever for the VSaaS market, Dropcam has now received a funding round that is twice the size of its last one. In this note, we examine what this means for Dropcam, where the company is today and what they may be able to do in the future.

Background

In June 2012, Dropcam announced $12 million USD funding, 8 months after announcing ~$6 million USD. Prior to 2011, Dropcam had OEM'ed Axis cameras and had a very rudimentary offering. Since then, Dropcam developed their own HD WiFi small form factor cameras with integrated IR for $149 USD (see our review of HD Dropcam).

Along with the announcement, Dropcam mentioned some minor new enhancements including and Android App and improved motion detection.

Product Adoption

In a statment, Dropcam says:

"The response to Dropcam HD has been crazy. We've sold out of our first few shipments - the good news is we now have our manufacturing lines running all the time so the backorder period is over. We sold more Dropcam HDs in the first few weeks of availability than all prior models combined."

That noted, it is not clear how many or how significant sales of their historical models were. However, the new series is better in many key factors (HD vs SD, IR vs color only, streamlined vs generic cube camera, etc.) so a major rise in sales is not surprising.

Earlier in the year, the company acknowledged manufacturing problems in China that they say has since been resolved.

Dropcam's Amazon reviews are overall solid with fairly easy to resolve criticisms. Plus, they are much better than the Stem Izon, perhaps the most direct comparable to Dropcam.

Competitive Analysis

While the core of our analysis from the previous round remains, a few important points are worth emphasizing:

  • Having an extra $12 million will allow them to do things that almost no one else in the market can do. This certainly does not guarantee success but it does afford them the opportunity to build out a fairly deep product line. While Dropcam would not indicate what they are developing, it would make sense for them to offer a greater selection of models (today they only have one), integrate on board storage (today they stream everything off site), further improve motion detection (to enable highly reliable alerting), etc.
  • Unless Dropcam totally screws up, the many 'mom and pop' consumer VSaaS offerings that built their own small scale offering OEMing or re-using existing IP cameras will have an extremely hard time to compete for consumers. Dropcam will likely improve their product advantages with more models, more services, more marketing, etc. making it difficult for bootstrapped VSaaS providers to compete.
  • Dropcam is clearly comfortable and focusing on selling direct to consumers - a move that Axis is too afraid to do - and one that gives Dropcam a huge advantage in going after the home market. It is not hard to see Dropcam (or another outsider with a similar strategy) to become a major player in the home monitoring / surveillance market.

1 report cite this report:

Goodbye Dropcam, the $50 Home Security Camera Era Is Here on Feb 10, 2016
Remember those days not too long ago where a $200 home security camera with a $100 per year for storage was considered novel and exciting? That...
Comments : PRO Members only. Login. or Join.

Related Reports

Calipsa - UK AI Startup Profile on Jul 10, 2019
Analytic startups are a major industry trend. One UK company, Calipsa is aiming to use AI to filter out false positive alarms for live video...
Ivideon Russian VSaaS Profile on Jun 27, 2019
Ivideon was an early VSaaS entrant, initially focusing on the consumer market, claiming massive growth to IPVM in 2014. We spoke to Ivideon, to...
Directory of 60 Video Surveillance Startups on Jun 25, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
IFSEC 2019 Show Report on Jun 19, 2019
The UK's largest trade show, IFSEC, is underway and IPVM has been examining what is new and happening at the show. Inside, we cover: Huawei...
Startup Vaion Launching End-to-End AI Solution Backed with $20 Million Funding on Jun 17, 2019
An EU / USA video surveillance startup, Vaion, founded by ex-Cisco Senior Directors is launching an end-to-end VSaaS platform with $20 million in...
Embattled $400 Million China Funded Philippines Surveillance System Proceeds on Jun 13, 2019
An embattled 12,000 camera surveillance system project that will cost ~$400 million will proceed.  The project contract was awarded, had its...
Directory of 30+ VSaaS / Cloud Video Surveillance Providers on Jun 07, 2019
This directory provides a list of VSaaS / cloud video surveillance providers to help you see and research what options are available. 2019 State...
Startup Rhombus Systems Says Twice the Features, Half the Price of Verkada on Jun 04, 2019
Closed cloud systems may be the fastest growing segment of video surveillance with Meraki and Verkada. Now another California company is joining...
Aegis AI Gun Detection Video Analytics Startup on May 07, 2019
Gun detection analytic startups are increasing as the promise of AI and the threats of active shooters grow.  One company, Aegis AI, is being led...
Bastille Cell Phone Tracking Profile on Apr 30, 2019
Is tracking someone by their cellphone the next generation of surveillance? Bastille is a US startup which tracks people by their cellphone or...

Most Recent Industry Reports

History of Video Surveillance on Jul 19, 2019
The video surveillance market has changed significantly since 2000, going from VCRs to emerging into an AI cloud era.  The goal of this history...
Mobile Access Usage Statistics 2019 on Jul 18, 2019
The ability to use mobile phones as access credentials is one of the biggest trends in a market that historically has been slow in adopting new...
New GDPR Guidelines for Video Surveillance Examined on Jul 18, 2019
The highest-level EU data protection authority has issued a new series of provisional video surveillance guidelines. While GDPR has been in...
Wyze AI Analytics Tested - Beats Axis and Hikvision on Jul 17, 2019
$20 camera disruptor Wyze has released free person detection deep learning analytics to all of their users, claiming users will "Only get notified...
Anyvision Aims For 2022 Revenue of $1 Billion on Jul 17, 2019
Only 3 video surveillance manufacturers do a billion dollars or more in annual revenue - Hikvision, Dahua, and Axis. Now, Anyvision plans to join...
HD Analog vs IP Guide on Jul 16, 2019
For years, HD resolution and single cable signal/power were IP camera advantages, with analog cameras limited to much lower resolution and...
How To Troubleshoot Wiegand Reader Problems - Inverted Wiring on Jul 16, 2019
Wiegand is the dominant method of connecting access readers, but problems can arise for installers. In fact, one of the most difficult reader...
ZeroEyes Gun Detection Startup on Jul 16, 2019
A gun detection video analytics startup, ZeroEyes, is being led by a group of 6 former Navy SEALs, aiming to "save lives" by using AI to assist...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
Hikvision Global News Reports Directory on Jul 15, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...

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