BluB0X - The Most Ambitious Security Startup in Years

Author: 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.

**** ******* ********* ***** ** ** **********.

**** ******** ********** ** * "****** ******** ******** **** ******** ************* *********** ** ******, ******, Visitor, ***** *** **********."

***** **** ********(**** * **** / * *** * *), *** ** industry ******** *** *** ** **** ***** *** ********, ****** an ************** ******** ** ******* *** ******** ***** *******. ** this ****, ** ******* *** *******, *** *********** *** *** potential.

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

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

** ******** ** **** ****** / ******** ******** ***** ****, ****** has **** ******** **********. *** *******, ***** ***** **********, **** **** **** **** ** ***** ** ********** *** include '************' ***** **** ***** ** ***** ******, ******** * ******* ********* *** ******* ******** ** ***' ****** control *********, *** ******* ***** ******** ** *** *** ********, *** *** **** ****** ******** ** ********* ** ******* *** ******.  *** ***** ******* members ** ******'* **** **** **** ******** ****** ***********.

******* **********

******'* ********** **** **** **** ******, ******** * ***** ******** services ********,********, ** *** ***** **** ************* ******** ** ***** **** *** $** *******. **** ******** ********** **** ******* access ******* ********* (*.*., **** ***** ** * *** *******, Lenel, **** *****, ***.) ******** ***** *** ***** (*.*. ******** management *********) ** ********* *** ****** ****** **** *********, **** *** video ************.

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

********** *** ******* **** **** ********'* ***********, ****** ******** ***** funded ****** ** ****.

** ********, *** ********* ****, ****** **** ***** ~** '************' have *** ***** *** ********, ******* ** ******* **** *** company. *******, *** ******* ** *** ** *** ***** ** raising *** ****** * *******.

Product ********

****** ********* ****** **** *********** **********, ********** **** ** * ****** short ****:

  • ****** ****** *******: *** **** *********** ** ******** ************* ****** ********** ****** ********, *** ****** ****** ****** ************ ********** *********, ****** *******, ********, ******* **********, *** **** badge ******** *** ****** *** **** ********.
  • ***** **********: ******'* ***** ******** *** ** ********** ** * notification ******* *** ******* ******* ****** **** ******.  *********, ****, and **** ***** ************ ****** *** ** ************ **** *** distributed ******* ****** ** ****** *****.
  • ******* **********: ****** ****** **'* *** ******* ********** *********** **** is ********** **** *** ****** ****** *** ****** ******** ***********.
  • ***** ************: ***** ********* ** ****, ****** ***** ** *** cloud-based ***** ********** ** *** ****** ******, *********** ***** ****** with ***** ******* *** ****** ****** *** ********.

*** *** ****** ********* ** ************, **** *** ******** ** features ********** ** *********** ** ******** *****:

*** '******' ******** ** ** ***** *********** ********** **** ****** ************ or ****** ******* *** ******.  *** ******* ******* ************* **** 'any ******' ******** ** **** *** * *******, *** **** not ** ********* ****** ****** ****. 

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

** *** *******'* ***** *** ****** **** *********, ***** *********, situational ********* *** ******** *********** ** *** **** ********.

Biometric ****** 

*** ******* ****** *** *** ********* ****** ******** ****** "****** ******". *** company ****** *** **** ****** ** ** **** ****** ********* authentication *** ** ********** ****** ******** ** ** **** ** eye-level ****** ** *****:

*** ******* ****** **** ***** *** ****, *** **** '**** than * ******', *** ** ********* ******* ** ******-**** *** environmentally ****** ******** *********. ****** ****** ** **** ********** **** BluB0X ****** *** **** ***** $*** **** *** ******** *********, but ****** ********* *****.

******** *******

******* *** ****** ****** ***** ** ******* ******, ****** *******, or ********** ***** ******. ******* ******* ** *** ******* $**.** - $** *** ****** ****** (**** *** ********* ****** ****** pricing ** ~$** *** *****) *** ~$** *** ***** ***** like **** ***** ****** ** ********* ***** *****. ********** ***** like ****** ******** *** *** ******** ** *** ********* ******* cost.

********* ******* ******* **% *** ** *** *** ********* ******* for ******** ******** ******** **** ******.

*** ******* ****** ** ******* ********** ** ***** ***** ***** access ********* **** *****, ***** ********* ******* ******* $** - $15 *** **** *** ******.

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

****** ** ******* ******* ******* *** ******** ***** ****** **** currently. This ******** ******* **** ********'* *****, ***** **** ****-********* ************ and ******* **** ********** ***** *** ****** ******* *** *******.

Company *******

** *** ******** ****, *** ******* *** *** ** ********** start *** ***** *********** ************* ** * ***** **** *****. Plus, **** **** ** ************ **** *** **** ****** ********** and ******** **** ******** ***** / ***********. ***** ****** *** critical ** ******** ********* *** * ************ ****** ******.

**** *** ****, *** ********* ** **** ********** ** **** space **** ***** * ****** ** *************** *** ************ **** a ****** ** ****. *** ******* ****** *** ***** **** gap *** *** **** **** *** ***** **** ***** ***** based ********** ******** *********'* ******** ************** *** *********** ******* ** be ****.

***********, ******** ** *** ***** ************* ***** ************ ******, ****** looks ** ** ** ********** *** ******* *** *********** ******* for * ***** *****, *** ******* ** ******* ******* *** 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.

Thumbnail gggr

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

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

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

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

Smartmouth.

Thumbnail usa shield

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

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

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

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

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?

Thumbnail pp 5

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 :)

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

Alexa Guard Expands Amazon's Security Offerings, Boosts ADT's Stock on Sep 21, 2018
Amazon is expanding their security offerings yet again, this time with Alexa Guard that delivers security audio analytics and a virtual "Fake...
UTC, Owner of Lenel, Acquires S2 on Sep 20, 2018
UTC now owns two of the biggest access control providers, one of integrator's most hated access control platforms, Lenel, and one of their...
Favorite Request-to-Exit (RTE) Manufacturers 2018 on Sep 19, 2018
Request To Exit devices like motion sensors and lock releasing push-buttons are a part of almost every access install, but who makes the equipment...
Central Stations Face Off Against NFPA On Fire Monitoring on Sep 18, 2018
Central stations are facing off against the NFPA over what they call anti-competitive language in NFPA 72, the standard that covers fire alarms....
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,...
Ascent / MONI Faces Lender Lawsuit and Debt Crisis on Sep 13, 2018
ASCMA, aka Ascent, aka Brinks Home Security, aka MONI, aka Monitronics is being sued by a group of their lenders who allege: As of June 30,...
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...
Door Fundamentals For Access Control Guide on Sep 12, 2018
Assuming every door can be secured with either a maglock or an electric strike can be a painful assumption in the field. While those items can be...
Ambarella on Computer Vision and US Hikua Ban on Sep 10, 2018
Ambarella, a widely-used video surveillance component supplier, is betting on the rise of computer vision and is already seeing a sales impact from...

Most Recent Industry Reports

Alexa Guard Expands Amazon's Security Offerings, Boosts ADT's Stock on Sep 21, 2018
Amazon is expanding their security offerings yet again, this time with Alexa Guard that delivers security audio analytics and a virtual "Fake...
UTC, Owner of Lenel, Acquires S2 on Sep 20, 2018
UTC now owns two of the biggest access control providers, one of integrator's most hated access control platforms, Lenel, and one of their...
BluePoint Aims To Bring Life-Safety Mind-Set To Police Pull Stations on Sep 20, 2018
Fire alarm pull stations are commonplace but police ones are not. A self-funded startup, BluePoint Alert Solutions is aiming to make police pull...
SIA Plays Dumb On OEMs And Hikua Ban on Sep 20, 2018
OEMs widely pretend to be 'manufacturers', deceiving their customers and putting them at risk for cybersecurity attacks and, soon, violation of US...
Axis Vs. Hikvision IR PTZ Shootout on Sep 20, 2018
Hikvision has their high-end dual-sensor DarkfighterX. Axis has their high-end concealed IR Q6125-LE. Which is better? We bought both and tested...
Avigilon Announces AI-Powered H5 Camera Development on Sep 19, 2018
Avigilon will be showcasing "next-generation AI" at next week's ASIS GSX. In an atypical move, the company is not actually releasing these...
Favorite Request-to-Exit (RTE) Manufacturers 2018 on Sep 19, 2018
Request To Exit devices like motion sensors and lock releasing push-buttons are a part of almost every access install, but who makes the equipment...
25% China Tariffs Finalized For 2019, 10% Start Now, Includes Select Video Surveillance on Sep 18, 2018
A surprise move: In July, when the most recent tariff round was first announced, the tariffs were only scheduled for 10%. However, now, the US...
Central Stations Face Off Against NFPA On Fire Monitoring on Sep 18, 2018
Central stations are facing off against the NFPA over what they call anti-competitive language in NFPA 72, the standard that covers fire alarms....
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...

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