Crowdsourced Funding for Security Startups

Author: Brian Rhodes, Published on Apr 09, 2012

"I have a great idea, but no money to do anything with it!" This circumstance has to be one of the most frustrating sentiments shared by tinkerers, tweakers, and freestyle designers today. The security industry seems dominated by huge conglomerates who have rigidly planned product development roadmaps, or by small, cash strapped manufacturers unable to fund side projects. Suppose you have a "million dollar idea", but no "million dollar R&D budget". What comes next?  In this note, we examine Kickstarter, a website sponsoring small scale venture capital investment.

Overview

First launched in 2008, the website's goal is the central concept of matching projects in need of capital with potential investors. Visitors to the opportunity are given a single page briefing by the solicitors, and the return on pledges are indicated upfront. A hallmark of most opportunities is the rather low price of sponsoring a project compared with traditional VC arrangements. Project sponsorship levels are typically 'tiered' in such a way that more valuable sponsorship pledges receive more product, service, recognition, or appreciation from the benefactors as the pledge amount increases. The scope of projects eligible for Kickstarter sessions are broad: film, art, music, literature, software, and technology devices have all seen successful sessions, with some projects having over $ 1 Million USD pledged.

The website receives it's funding through a percentage of total funds raised from successful individual projects. Not all projects are successful; if the project doesn't receive the goal amount of pledges within a pre-determined deadline, then no money is collected from sponsors. At the current time, Kickstarter reportedly experiences a 44% success rate for funding projects. The site claims over 20,000 projects have been successfully funded, and hundreds of millions of dollars pledged.

Outcome

Innovative security projects have the opportunity for funding based on their own merit, through 'crowdsourced' venture capital. Surveillance products like the 'OCULUS' security robot have already enjoyed successful Kickstarter funding sessions. OCULUS received over $25,000 in funding from just over 100 backers.

See our OCULUS product review for details on the offering.

It will be interesting to see what other types of 'niche' security technologies and products gain funding via Kickstarter, or other avenues like it. The concept is built on the premise of 'the best ideas find a way to reality'. We see Kickstarter as potentially being able to push the small security innovator one step further up the ladder of progress.

Comments : PRO Members only. Login. or Join.

Related Reports

N3N "Truly Open Visualization Platform For Physical Security" Profile on May 09, 2018
A Cisco-backed startup, N3N, claims to deliver "the world’s first and only truly open visualization platform for physical security." The company...
Netwatch / NMC Mega Deal Targets Global Remote Video Monitoring on Apr 27, 2018
Big money has entered the remote video monitoring market. While remote video monitoring has been done for more than a decade, the market has...
Chinese Manufacturer Kickstarter Campaign Huge Success (EverCam) on Apr 23, 2018
In a week, a Chinese manufacturer's expertly done Kickstarter campaign has received $1.4 million in pledges, an incredible amount for a video...
Rare Video Surveillance Fundraising - Verkada $15 Million on Apr 19, 2018
Fundraising in video surveillance (and the broader physical security market) has been poor recently. Highlights are few and far in between...
Best and Worst ISC West 2018 on Apr 16, 2018
ISC West 2018 had strong attendance, modest overall new products, and a surge in Artificial Intelligence marketing. First, here are 20+...
ISC West 2018 Access Control Rundown on Apr 06, 2018
For ISC West 2018, what is new and interesting in access control?  This rundown will bring you up to speed on the exhibitors, what they are...
30+ Emerging Tech Companies Examined on Mar 28, 2018
ISC West has a new segment for 2018: the 'Emerging Technology Zone', which they boast: Featuring 50 of the latest and greatest startup...
Startup Image Intelligence 10X Accuracy Guarantee on Mar 26, 2018
An Australian startup, Image Intelligence, is targeting the biggest problem of video analytics, poor accuracy, with quite a claim: Is this...
3VR Firesale to Identiv on Feb 07, 2018
A decade ago, 3VR raised more than $60 million to deliver facial surveillance and video analytics in a '3rd generation' video recorder. Now, 3VR...
Dahua's Car Manufacturer Raises $63 Million on Feb 01, 2018
Not only has Dahua's car manufacturer raised $63 million USD, one of the best VCs in the world led the round. Is Dahua's car manufacturer ready to...

Most Recent Industry Reports

Buy Arecont: Top Bid $10 Million Cash on May 22, 2018
Last year, Arecont had a deal for a purchase price of $170 million (see Failed Arecont China Acquisition). This year, Arecont has a deal for a...
Installing Box Cameras Indoors Tutorial on May 22, 2018
This tutorial starts our physical installation for video surveillance series, starting with Box Cameras, one of the oldest and most basic types....
The Hikvision Smart Classroom Behavior Management System on May 22, 2018
Hikvision's rapidly growing offering of analytics, which we most recently examined with Hikvision's ethnic minority analytics, is now going into...
Dahua Intrusion Analytics And VMD Tested on May 21, 2018
Dahua ships basic analytics on practically all their cameras, ranging from low cost to high end. To see how these analytics work in real world...
Exacq Improving Technical Support, Responding To Integrator Complaints on May 21, 2018
Exacq had been a long-term favorite of integrators, but since their 2014 Tyco acquisition, Exacq has fallen in IPVM integrator studies (though...
Best Manufacturer Technical Support 2018 on May 21, 2018
While 5 manufacturers made the worst technical support 2018 list, only 3 stood out as providing the best technical support to 190+ integrators in...
Stealth / UCIT - Remote Video Monitoring Provider Profile on May 18, 2018
Can 2 remote video monitoring companies, Stealth Monitoring from the US and UCIT from Canada combine to impact the market and compete in a changing...
Cybersecurity for IP Video Surveillance Guide on May 18, 2018
Keeping surveillance networks secure can be a daunting task, but there are several methods that can greatly reduce risk, especially when used in...
Forced Entry / Duress Access Tutorial on May 17, 2018
Even though access control normally keeps people safe, tragedies have revealed a significant issue. If users are forced to unlock doors for...
ADT Stock Drops 50% Since IPO on May 17, 2018
It has been a brutal 4 months for ADT. They first expected to IPO at ~$18. They IPOed at $14, dropping immediately to $12.39 And now, not even...

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