Crowdsourced Funding for Security Startups

By: 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 : Members only. Login. or Join.

Related Reports

Retired Mercury President Returns As Open Options President on Mar 18, 2019
Open Options experienced major changes in 2018, including being acquired by ACRE and losing its President and General Manager, John Berman [link no...
Silicon Valley Cybersecurity Insurance Startup Coalition Profile on Mar 20, 2019
Many industry people believe cybersecurity insurance is not worth it, as the voting and debate in our Cybersecurity Insurance For Security...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 10, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...
Securadyne CEO: IPVM 'Entertaining For An Ignorant Few' on Apr 16, 2019
Securadyne's CEO Carey Boethel is unhappy with IPVM's report - Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied. Indeed, he...
Vidsys New President Interviewed on May 31, 2019
A decade ago, PSIM was hot with projections then of a billion dollar market by now. This has not come close to happening. However, Vidsys, one of...
ADT Eliminating Acquired Brands, Unifying Under 'Commercial' Brand on Jun 14, 2019
ADT is eliminating the brands of the many integrators it has acquired over the past few years, including Red Hawk, Aronson Security Group (ASG),...
Top Ways Security Integrators Improve Their Careers on Sep 03, 2019
With DIY products expanding and the future of integration debated, how do integrators stay sharp so they are not left behind? 180+ integrators...
How Cobalt Robotics May Disrupt Security on Sep 13, 2019
While security robots have largely become a joke over the last few years, one organization, Cobalt Robotics, has raised $50+ million from top US...
Milestone Has Problems on Oct 01, 2019
Milestone has problems. While the company previously excelled in the shift to IP cameras, as IP has matured and competitive differentiation has...
"If You Have The Same Qualifications, And You're A White Male, You Are Going To Lose", Says Integrator on Dec 16, 2019
Diversity is a rising priority, overall and in the security industry. One integrator, touting diversity, emphasized that white men are 'going to...

Most Recent Industry Reports

Latest London Police Facial Recognition Suffers Serious Issues on Feb 24, 2020
On February 20, IPVM visited another live face rec deployment by London police, but this time the system was thwarted by technical problems and...
Masks Cause Major Facial Recognition Problems on Feb 24, 2020
Coronavirus is spurring an increase in the use of medical masks, which new IPVM test results show cause major problems for facial recognition...
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...