BluB0X - The Most Ambitious Security Startup in Years

By: Brian Rhodes, Published on Sep 23, 2015

This startup literally wants to do everything.

They describe themselves as a "hosted security platform that delivers unprecedented unification of Access, Alarms, Visitor, Video and Biometrics."

Their name is BluB0X (with a zero / 0 not a O), led by industry veterans who aim to beat Lenel and Software, taking an unconventional approach to funding and building their company. In this note, we examine the company, its positioning and its potential.

**** ******* ********* ***** ** do **********.

**** ******** ********** ** * "****** security ******** **** ******** unprecedented *********** ** ******, Alarms, *******, ***** *** Biometrics."

***** **** ********(**** * **** / 0 *** * *), led ** ******** ******** who *** ** **** Lenel *** ********, ****** an ************** ******** ** funding *** ******** ***** company. ** **** ****, we ******* *** *******, its *********** *** *** potential.

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

Company ******** *** **********

** ******** ** **** access / ******** ******** these ****, ****** *** **** industry **********. *** *******, of*** ***** **********, **** *** **** than ** ***** ** experience. *** **** ******** 'recognizable' ***** **** ***** ** Perry ****** [**** ** longer *********], ******** * Siemens ********* *** ******* ******** of ***' ****** ******* committee, CEO ******* ***** [**** no ****** *********] ******** ** G4S *** ********, *** *** Skip ****** [**** ** longer *********] ******** ** ********* at ******* *** ******.  All ***** ******* ******* of ******'* **** **** **** security ****** ***********.

******* **********

******'* ********** **** **** this ******, ******** * cloud ******** ******** ********,********, ** *** ***** that ************* ******** ** ***** **** *** $** million. **** ******** ********** with ******* ****** ******* offerings (*.*., **** ***** is * *** *******, Lenel, **** *****, ***.) enabling ***** *** ***** (e.g. ******** ********** *********) to integrate *** ****** ****** with *********, **** *** video ************.

Self / ******** ******

********** *** ******* **** from ********'* ***********, ****** Touchcom ***** ****** ****** in ****.

** ********, *** ********* rare, ****** **** ***** ~30 '************' **** *** taken *** ********, ******* to ******* **** *** company. *******, *** ******* is *** ** *** midst ** ******* *** series * *******.

Product ********

****** ********* ****** **** fundamental components, ********** **** ** a ****** ***** ****:

  • ****** ****** *******: *** core *********** ** ******** ************* ****** ********** ****** platform, *** ****** ****** system ******** **** ********** reporting, ****** *******, ********, visitor **********, *** **** badge ******** *** ****** the **** ********.
  • ***** **********: ******'* ***** platform *** ** ********** as * ************ ******* for ******* ******* ****** only ******.  *********, ****, and **** ***** ************ alarms *** ** ************ into *** *********** ******* BluB0X ** ****** *****.
  • ******* **********: ****** ****** it's *** ******* ********** application **** ** ********** into *** ****** ****** and ****** ******** ***********.
  • ***** ************: ***** ********* in ****, ****** ***** to *** *****-***** ***** management ** *** ****** months, *********** ***** ****** with ***** ******* *** alarms ****** *** ********.

*** *** ****** ********* is ************, **** *** majority ** ******** ********** by *********** ** ******** boxes:

*** '******' ******** ** ** HTML5 *********** ********** **** either ************ ** ****** devices *** ******.  *** company ******* ************* **** 'any ******' ******** ** done *** * *******, but **** *** ** releasing ****** ****** ****. 

****** *********

** *** *******'* ***** are ****** **** *********, video *********, *********** *********, and ******** *********** ** the **** ********.

Biometric ****** 

*** ******* ****** *** *** biometric ****** ******** ****** "****** Reader". *** ******* ****** the **** ****** ** to ****-****** ********* ************** via ** ********** ****** intended ** ** **** at ***-***** ****** ** doors:

*** ******* ****** **** reads *** ****, *** take '**** **** * second', *** ** ********* limited ** ******-**** *** environmentally ****** ******** *********. Person ****** ** **** compatible **** ****** ****** and **** ***** $*** MSRP *** ******** *********, but ****** ********* *****.

******** *******

******* *** ****** ****** based ** ******* ******, system *******, ** ********** alarm ******. ******* ******* is *** ******* $**.** - $** *** ****** reader (**** *** ********* Person ****** ******* ** ~$15 *** *****) *** ~$40 *** ***** ***** like **** ***** ****** or ********* ***** *****. Additional ***** **** ****** hardware *** *** ******** in *** ********* ******* cost.

********* ******* ******* **% cut ** *** *** recurring ******* *** ******** end-users ******** **** ******.

*** ******* ** ******* equivalent ** ***** *****-***** access ********* **** *****, which ********* ******* ******* $10 - $** *** door *** ******.

Channel ***** ********

****** ** ******* ******* dealers *** ******** ***** dealer **** *********. **** ******** differs **** ********'* *****, where **** ****-********* ************ and ******* **** ********** sales *** ****** ******* the *******.

Company *******

** *** ******** ****, the ******* *** *** an ********** ***** *** built *********** ************* ** a ***** **** *****. Plus, **** **** ** organization **** *** **** domain ********** *** ******** from ******** ***** / deployments. ***** ****** *** critical ** ******** ********* for * ************ ****** market.

**** *** ****, *** challenge ** **** ********** in **** ***** **** built * ****** ** functionalities *** ************ **** a ****** ** ****. How ******* ****** *** close **** *** *** how **** **** *** argue **** ***** *****-***** advantages ******** *********'* ******** infrastructure *** *********** ******* to ** ****.

***********, ******** ** *** hyper-commoditizing ***** ************ ******, BluB0X ***** ** ** an ********** *** ******* for *********** ******* *** a *****-*****, *** ******* to ******* ******* *** legacy *************.

Comments (19)

Wait, what does this have to do with Avigilon or Hikvision? Why is this on IPVM?

:)

I think this is an interesting company with some potential. I have no idea if it will succeed as I have not examined it in anywhere enough detail but it is good to see companies betting on new approaches / offerings.

Now, they just need to change their name - this BluB0X wacky spelling is a pain to type and even worse to get to their website...

I so totally agree! It's an indication of their blue sky thinking, not grounded in reality. They will rue the day they chose this stupid spelling.

I watched a similarly aggressive company fail many years ago who chose the name Adesse; they chose to position the final letter "e" UPSIDE DOWN (as a clever reference to what is known as the "Schwah" in dictionaries...The Schwah is the 'uh' sound).

Don't be clever. Be smart.

What's worse is blubox.com (with an 'oh') is owned by iBlubox Ltd which looks like a shady adware operation out of the UK.

Steve, I'm late to the game on this thread...Nevertheless, I wanted to say that BluBOX (of www.blub0x.com) is not owned by iBlubox Ltd.

BTW, what was "google" before Google?

what was "google" before Google?

To Sean Anderson at least, it was

1000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

We added one final touch – the “O” in box was turned into a zero “Ø” as a nod toward our roots in security.

Is this B.S. or is there actually some known way that turning an O into a 0 is a nod to security? Why do they even need to nod anyway, aren't they still in security?

Slashed O trivia: Although today, as far as computing goes, the symbol is generally accepted as denoting the numeric over the alpha, yet in the early days it was often seen the other way around, as shown in this 1964 BASIC programming manual from Dartmouth.

Are you sure? When I was there, we always referred to our college as 'Dartm0uth' as a nod to our roots in programming...

Smartmouth.

Well, I think they are off to a good start with the CTO. I've worked with Skip before and got to see first hand his technical and process expertise. It was in a meeting with him and some other people where I got to see for the first time since high school trig an asymptote graph in a real world application. :)

Btw, the more I discuss / think about the employees working for no cash, just stock, the more amazing it seems.

Kudos to the CEO for pulling this off (salesmen of the year, I suppose), but what a big risk for employees to take. I wonder how long people can do that. If that was me, and assuming that I was not already super wealthy, that would create a lot of anxiety about the future of the company and whether I would ever see anything for my personal sacrifice.

Btw, the more I discuss / think about the employees working for no cash...

I get it now, it's a n0d to your paycheck...

How does that work in regards to taxes? The stock has to have some value (it's being used as compensation). Does bluebox at least pay enough to cover taxes, or do the employees actually have to pay the IRS at the end of the year out of their own pocket?

IMHO, there is no taxable event until the sale of the stock.

That's not how it works with stock grants, but that is how options work.

There are two ways the employees could be granted stock, as fully vested, or as restriced. The tax handling is different for each method.

If the stock is fully vested then you owe tax on the value of the stock.

If the stock is restricted, then you can defer the tax. However restricted stock would typically mean that it vests over time and you have to remain employed in order to actually fully earn the stock.

I would imagine in this case, the stock is fully vested at time of grant, otherwise the employees would be receiving nothing at all of value for their time. No pay, and no full ownership of shares.

I would imagine in this case, the stock is fully vested at time of grant, otherwise the employees would be receiving nothing at all of value for their time.

Disagree. Employees are compensated all the time thru stock grants that vest over three to five years, this is usually the case, in my opinion.

Restricted stock grants are not receiving nothing of value.

There is no market for the shares anyway, so practically, as long as you stay the vesting period there is no difference. Everybody plans on staying in this type of startup.

Finally, even if they did vest at once, what do you think the cost basis of the stock is going to be on a startup?

Remember, this is not Disney or Wal-mart.

Disagree. Employees are compensated all the time thru stock grants that vest over three to five years, this is usually the case, in my opinion.

Yes, when those stock grants are IN ADDITION to base pay, not IN LIEU OF base pay.

Finally, even if they did vest at once, what do you think the cost basis of the stock is going to be on a startup?

Well, you would think the cost basis of the stock would be equal to what that persons salary would have been. Let's say you're a developer that can make $120,000 someplace else, you better be getting $120,000 worth of stock at the current valuation or else this is just a horrible job opportunity.

Restricted stock grants are not receiving nothing of value.

Let's say you agree to a job at bluebox, and you work there for 1 year. You get a stock grant with a value roughly equal to one year's salary at the end of that year for the work you put in. Now let's say you switch jobs for whatever reason (spouse got an offer with a relocation requirement, need to be closer to family member, better opportunity), if those shares were restricted, as in with a typical 4 year vesting period, you would walk away with 0% of them, or maybe 25% if they vest the first year. Do you think that would be a fair arrangement and count as receiving something of value?

Yes, when those stock grants are IN ADDITION to base pay, not IN LIEU OF base pay.

I am arguing only based on what I have seen, not on what is fair.

Have you heard of such an arrangement where new employees get fully vested stock at regular pay periods?

IMHO, No one is paying income tax using real cash just for receiving illiquid shares of stock in a startup.

Would you as an employee pay $30,000 a year in income tax for possibly worthless stock?

Would you as an owner pay $50,000/per employee (gross up + employers employment taxes) on stock that you gave to your employees to compensate them?

Do you really think that is what is going on at BluB0x?

Nice try, Internal Revenue Service...

I think BluB0x is on to something. Saw their demo during ISC West and was quite impressed :)

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

HID Launches Origo To Fix Mobile Credential Problems on Feb 05, 2019
HID is releasing Origo, an overhaul of its mobile credential platform, this time drastically restructuring the way it is priced and packaged. HID's...
BluB0x Company Profile on Feb 20, 2019
BluB0x has doubled in revenue every year since its founding in 2013, according to CEO Patrick Barry [link no longer available]. We originally...
Genetec Declares "Lead With Synergis" Access Control on Mar 04, 2019
Genetec started with and is best known for its video management software. However, the company is now imploring its partners to lead with Synergis,...
Startup GateKeeper Aims For Unified Physical / Logical Access Token on Apr 04, 2019
This startup's product claims to 'Kill the Password' you use to keep your computers safe. They have already released their Gatekeeper Halberd...
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...
ACRE Acquires RS2, Explains Acquisition Strategy on Apr 19, 2019
ACRE continues to buy, now acquiring RS2, just 5 months after buying Open Options. One is a small access control manufacturer from Texas, the...
Proxy Access Control Tested on May 09, 2019
Silicon Valley Access Startup Proxy raised $13.6 Million in May 2019, focusing on mobile physical access control. Beyond the fund raising, Proxy...
Farpointe Data Conekt Mobile Access Reader Tested on Jun 13, 2019
California based Farpointe Data has been a significant OEM supplier of conventional access readers for years to companies including DMP, RS2, DSX,...
ProdataKey (PDK) Access Company Profile on Aug 09, 2019
Utah based ProdataKey touts low cost cloud access, wireless controllers, and no dealer required national distribution availability. But how does...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...

Most Recent Industry Reports

Every VMS Will Become a VSaaS on Feb 21, 2020
VMS is ending. Soon every VMS will be a VSaaS. Competitive dynamics will be redrawn. What does this mean? VMS Historically...
Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Vulnerability Directory For Access Credentials on Feb 20, 2020
Knowing which access credentials are insecure can be difficult to see, especially because most look and feel the same. Even insecure 125 kHz...
AI/Smart Camera Tutorial on Feb 20, 2020
Cameras with video analytics, sometimes called 'Smart' camera or 'AI' cameras, etc. are one of the most promising growth areas of video...
China Manufacturer Suffers Coronavirus Scare on Feb 20, 2020
Uniview suffered a significant health scare last week after one of its employees reported a fever and initially tested positive for coronavirus....
Cheap Camera Problems at Night on Feb 19, 2020
Cheap cameras generally have problems at night, despite the common perception that integrated IR makes cameras mostly the same, according to new...
Milestone Launches Multiple Cloud Solutions on Feb 18, 2020
Milestone is going to the cloud, becoming one of the last prominent VMSes to do so. Milestone is clearly late but how competitive do these new...
Video Surveillance Architecture 101 on Feb 18, 2020
Video surveillance can be designed and deployed in a number of ways. This 101 examines the most common options and architectures used in...
UK Stands Behind Hikvision But Controversy Continues on Feb 18, 2020
Hikvision is exhibiting at a UK government conference for law enforcement, provoking controversy from the press, politicians, and activists due to...
IronYun AI Analytics Tested on Feb 17, 2020
Taiwan startup IronYun has raised tens of millions for its "mission to be the leading Artificial Intelligence, big data video software as a service...