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.

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)

John Honovich

IPVM | 09/23/15 06:34pm

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...

Matt Bode

In reply to John Honovich | 09/23/15 06:58pm

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.

Steve Mitchell

In reply to Matt Bode | 09/24/15 06:51pm

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.

Avatar

David Coughlin

Protection One / ADT
In reply to Steve Mitchell | 10/27/16 09:08pm

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?

Undisclosed #1

IPVMU Certified | In reply to David Coughlin | 10/27/16 10:16pm

what was "google" before Google?

To Sean Anderson at least, it was

1000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 09/24/15 02:54am

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.

John Honovich

IPVM | In reply to Undisclosed #1 | 09/24/15 11:29am

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

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 09/24/15 07:38pm

Smartmouth.

Avatar

Luis Carmona

IPVMU Certified | 09/23/15 07:05pm

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. :)

John Honovich

IPVM | 09/24/15 11:58am

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.

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 09/24/15 02:33pm

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

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

Undisclosed #2

In reply to John Honovich | 09/24/15 02:59pm

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?

Undisclosed #1

IPVMU Certified | In reply to Undisclosed #2 | 09/24/15 03:01pm

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

Undisclosed #2

In reply to Undisclosed #1 | 09/24/15 03:29pm

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.

Undisclosed #1

IPVMU Certified | In reply to Undisclosed #2 | 09/24/15 04:38pm

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.

Undisclosed #2

In reply to Undisclosed #1 | 09/24/15 08:29pm

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?

Undisclosed #1

IPVMU Certified | In reply to Undisclosed #2 | 09/24/15 09:23pm

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?

Avatar

Brian Rhodes

IPVMU Certified | In reply to Undisclosed #2 | 09/24/15 03:01pm

Nice try, Internal Revenue Service...

VINAY PATEL

IPVMU Certified | 05/04/16 11:31pm

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

Read this IPVM report for free.

This article is part of IPVM's 6,538 reports, 881 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Startup Visual One Presents Object Detection and Smart Search on Aug 26, 2020
Visual One, a Y Combinator backed startup led by a PhD in machine learning...
Directory of 96 Video Surveillance Startups on May 20, 2020
This directory provides a list of video surveillance startups to help you see...
Startup Videoloft Presents Cloud Storage on May 27, 2020
Videoloft presented offsite cloud storage at the May 2020 IPVM Startups...
Startup Boulder AI Presents Edge to Cloud Physical Security on Sep 01, 2020
Boulder AI, a deep learning startup taking on custom analytics projects with...
SafeZone Tech Presents AI Gunfire Detection on Jun 15, 2020
Safe Zone presented its AI gunfire sensor the May 2020 IPVM Startups...
Sequr Presents HID based Cloud Access Control on Jun 04, 2020
Sequr presented HID based Cloud Access Control at the May 2020 IPVM Startups...
Startup Vaion Presents End-to-End Cloud Managed Video Surveillance on Aug 20, 2020
Vaion presented its end-to-end cloud managed video surveillance offering at...
Low Voltage Nation Wants to "Help You Carve Out A Fulfilling Career" Interviewed on Jul 06, 2020
It is difficult to make your way in this industry as there is little formal...
Startup Rhombus Presents Cloud Managed Physical Security on Sep 02, 2020
Rhombus Systems, a closed camera, analytics and cloud VMS alternative to...
Verkada Access Control Tested on Sep 09, 2020
Verkada raised $80 million earlier in 2020, expanding from video into access...
ISS Presents Face As A Credential and UVSS on Apr 30, 2020
ISS presented its security platform, including access control integration,...
Startup Cawamo Presents Live Alerts With Edge AI and Cloud VMS on Sep 15, 2020
Cawamo, an Israeli edge-to-cloud analytics and VMS startup, presented its...
Cobalt Robotics Presents Indoor Security and Access Robots on Jun 03, 2020
Cobalt Robotics presented indoor security robots at the May 2020 IPVM...
Mobiqam Presents Battery Powered & Quick Setup Video Surveillance on Jun 12, 2020
Mobiqam presented its battery-powered, quick setup video surveillance system...
Openpath Presents Two Door PoE Controller on May 21, 2020
Openpath presented its new PoE controller at the May 2020 IPVM Startups...

Recent Reports

New Products Show Fall 2020 continues tomorrow with Genetec, Milestone, Avigilon, Microsoft and more! on Sep 29, 2020
IPVM's sixth online show continues tomorrow and will feature New Products...
Avigilon / Motorola VS Virtual ISC West on Sep 29, 2020
ISC West has historically been so dominant that no player would think of...
Dartmouth College Deploys K3 Temperature Screening on Sep 29, 2020
While Dartmouth College has a $6+ billion endowment, the College has bought...
Hanwha AI Object Detection Tested on Sep 28, 2020
Hanwha has added detection and classification of people, cars, clothing...
Favorite Access Control Manufacturers 2020 on Sep 28, 2020
200+ Integrators told IPVM "What is your favorite access control management...
OnTech Smart Services Partners With Google and Amazon To Compete With Integrators on Sep 25, 2020
A pain point for many homeowners to use consumer security and surveillance is...
The Future of Metalens For Video Surveillance Cameras - MIT / UMass / Immervision on Sep 25, 2020
Panoramic cameras using 'fisheye' lens have become commonplace in video...
Hikvision Sues Over Brazilian Airport Loss on Sep 24, 2020
Hikvision was excluded from a Brazilian airport project because it is owned...
China General Chamber of Commerce Calls Out US Politics on Sep 24, 2020
While US-China relations are at an all-time low, optimism about relations...
Verkada Disruptive Embedded Live Help on Sep 24, 2020
Call up your integrator? Have someone come by the next day? Verkada is...
IP Networking Course Fall 2020 - Last Chance - Register Now on Sep 23, 2020
Today is the last chance to register for the only IP networking course...
Drain Wire For Access Control Reader Tutorial on Sep 23, 2020
An easy-to-miss cabling specification plays a key role in access control, yet...
Norway Council of Ethics Finds Hikvision Human Rights Abuses "Ongoing" on Sep 23, 2020
Hikvision's involvement in "serious human rights abuse" in Xinjiang is...
IPVM Camera Calculator User Manual / Guide on Sep 23, 2020
Learn how to use the IPVM Camera Calculator (updated for Version 3.1). The...