This Intrusion Startup Raised $57 Million

Author: Brian Rhodes, Published on Jun 04, 2014

One of the top VCs in the world has invested a staggering $57 million in a DIY Intrusion monitoring company, Simplisafe.

But who is Simplisafe? Why did they get $57 million? And how do they compare to traditional offerings like ADT?

In this note, we examine the key drivers and structural differences. This is the first part of our Simplisafe review, which will conclude with a full test of the system later this month.

*** ** *** *** *** ** *** ***** *********** * ********** $** ********* * *** ********* ********** *******,**********.

*** *** ** **********? *** *** **** *** $** *******? And *** ** **** ******* ** *********** ********* **** ***?

** **** ****, ** ******* *** *** ******* *** ********** differences. **** ** *** ***** **** ** *** ********** ******, which **** ******** **** * **** **** ** *** ****** later **** *****.

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

Major ************

***** *** ******'* ********** ** ******* ** ******, *** ******** ********** two *** ************:

  • ***: ********** ** ******** ** *** '**-**-**********', **** ******** ** install, *** **********. *** ****** *********** *** ********, ******* *******, and ******** ******* **** ******** **** *****, *****, *** *******.
  • ********** ********: **** ** ***** ** ********, ******* ***** **** ** additional ******* **** ***** (****** *****) ******** ****, ** ** paying * ******* ******* ******* ******* (**** **** ******** ******/****) costing ******* $** - $** *** *****. ******* ********* **** features **** ********** *** ****** *** ****** ***/**** ******* ************* are *******.

**** ** ***** ** ******** *** ****** ******, ********** ** *** unique. *** ******* '*****' ******** ************ *******, *******, *** ******* ********* ******* *** ***-**** ****** sensors*** ****** ** ********* ********* *********.

Product ********

********** *********** ******* ** *** **** ***** ********, **** **** ********* ******** containing *****, **** ***** *******, *** *** ********* ******* ********* more ******* *** ****** ********* *** ***** *** ********* ****. Take * **** ** *** ***** ***** ***** *** * general ******** *** ************ **** ** * ******:

*** *******:

***** ****** ******** *** **** '**** ***', * **** ******'**** *******' ******** ************ ******** * *** *****, ** ** ** *******, * ~24 **** ****** *******, *** * ****** *****. *** ******* are ********** ********** ** **** ******* **** ****** ***** *** - *** **** *****.

** **** ******* *** ** ********* ** *** **** *** ****, * *** of ***** *****, **** ****** ***** ********* ***** *******, ***** sensors, *****/** *********, *** ********* ******* *** ******** ******. ******* being ******* *******, *** ******* ****** **** **** ******* **** last ** *** ***** ** ******** ***** ******* ************.

No ************ ******

***** **** *** ****** ***** *** *** ************ *****, *** other ***** ******** ********** ** ******** ******* ******* ********** *** contracted **** **** ******. *** **** ***** ******* ***:

 

*** $** ******* '********' ******* ** ******* ** * ***** traditional ********** ********. *** $* **** * *****, ********** **** SMS/email ******, ***** ** *** ******* *** *********** ******* *** a ***** *******. **********'* ******* *** *******, ***********, ** $** per *****, ****** *** ****** *******, ***** ** *********** * low-end / ***** ********** ********.

UL ******* *******

** *** ********** ******, * '** ******' ******* ******* ** the ******** ****** *** ************ ***** ******* *********. *** * central ******* ** ******* '** *****' ******, ** **** **** expectations ********** ******, **********, *** ******** **********.  **********'* ******* ******* ** * '** *****' ** '** Listed' *******, ******* ** ***** *** *********** ********* ** **** commercial ********. ** ** *** * ************** ******** ** *********** offerings.

Claimed **********

********** ****** ** ****** * ****** ** ******** ****** ** traditional ***** *********, *********:

  • ******** ** *****:*** ****** ********** ******** ** ******** *** ******* *******, ***** it ****** ****** ******** *** * *********** ***** ******. ***** installation ** ******* ** ******** ******* ** ***** ***** ****, the ********* **** *** *** ** **** *********, *** *** cost ** ******** ********* ** *** ******* *** ** ~$**+ even *** * ****** ****** ** ** - ** *******. A ********* ****** **** *** ******* ******* ****. ************, ******** sensors *** *** ******** **** ** ********* *******, *** *********** and *********** *****, ****** ** ****** *** *** ***** ******.
  • ******* **********: ** **** *****, ********** ****** *** ~$**-$** /***** ********** is **** ********* **** ********** ******* ~$** -$** *** *****. Indeed, *** ***** *******, ********** *** ** ******* *** ***** the **** '** ******' ******* ******* ** **********, *** *********** customers *** **** **** ********* ************ **** *********** ********** *********.
  • ** ******* *********:**** ***** ** ** ********* *** **********. ****** ********* ***** companies **** ********* **** ********* *** * ********** ****, ***** 36 ****** ** ******, ********** **** *** ******* ****** ******** ***** initial ********. ** ********** ******* ** ********, *** ****** ** still *********** *******, *** *** ******* *** ** ********* ** a *****-**-***** *****.
  • ** **** ******:********** **** ****** ** ***** ** ***** ********, *** **** uses ** ** *********. ***** * *****-** *** ***** ** communicate **** ******* ******** ****** ****, *** ***** **** ** not ********* ** **********. ******, **** ********** **** ******* ******* GSM ***** ******* *** ***** *** **** ****** ***** ******** requirements.

No ***** ** **********

*******, ********** ***** ****** *** ********. *** *******, '***** ********' like **** ** ******** ******** *** ***** ************ **** *** available ** ******** ********* ********* **** ********* ********** ******** *** ******* ** **********.

***** ********* *** ****** ********* ** *** ***** ***** ** SimpliSafe, *** ********* *** ******** *** ***** ******** ** **** featured ********* ******* ********* **********.

Price ***********

*** ***** ******* ** **** *** **-***** ******* ******, ********** saves * *** ** ***** ** ** ** **** *** one **** ******* **** ($*** ** $***) ****** ~$*,*** **** a * **** ****** *** * *********** ***** ******.

*******, *** ***** *** **** ********* ********* ******, *** ***** difference ** **** ******. **** **********, *** *** *** ******* cost *** **** *** $** ******* ***. **** * * year ******, **** ** $*** ** $*,***, ***** ** **** a *********** ****** ***** (***** **** *** ******* **** ** typically ******* / ********* **** *** ******* ***).

**** **** ***** (* *****, *, ****), *** ***** ******* of ********** ******** ** *********** ***** ********* ******** ** ****** the **** *** **** ***** *** ********* *** **** '**** off'. 

The $** ******* ** *******

******** ** *********** ***** *******, ********** ** *** ************* *** it **** ***** **** ******* *** **** *************. ******, ********** is **** *** ** **** *** ********* *********.

***** ********** *** ******* ** **** *** ******* ***,*** *********, until ***, *** ******* ******* ** **** ***** **** **** modest ******** *******.

*** $** ******* ** ******* **** *** **** ****** ** a ******* ***** ******* ********* ********. *** **** ** *** key ********* / ************** ****.

**** ** ********** **** *** '****' ***, ***** ******* ** an *********** *** * *** ***** *********** ** ****** * major ******. *** **** $** ******* ** ***** **** *** next *** ***** *** * ********** ** ****** ****, **** have * **** ** **.

 

Comments (6)

Gòod one. It will be up to their marketing now to recover investment and start making an actual profit.

There are quite a few companies out there with product-range based on this concept. We have come across 'Alpha Arsenal', a Russian brand and have checked their products. The only thing I can say about DIY feasibility is - they are not very simple to set up thru' smartphones.

Hope Simplisafe products are simpler to work with and offer excellent value for money.

Speaking of profits, Simplisafe said they became profitable in 2011.

Now, with such massive VC funding, profitability is not only irrelevant, it is the adverse of their aim. It's all about hockey stick growth, market excitement and sale to Google/Apple/Facebook/Amazon/whatever...

There are quite a few competitors in the DIY security market. Major difference I see is that SimpliSafe has been running ads on the radio vs relying solely on Youtube, a few google keywords and word of mouth.

Scott, I agree that there are a number of competitors. Do any of them have the warchest Simplisafe just got?

No, and maybe with well placed advertising they can capture that part of the market -

Simpli Safe is one of the few DIY security groups that seems to have their own equipment (not using a packaged Honeywell or GE Wireless) does anyone know who they OEM thier equipment from or if they actually manufactured and engineered thier own products?

They dont appear to have a camera setup to their system, which I am sure they plan to change - lots of cities are ignoring standard alarm calls if no verification is implemented.

Hello Scott:

SimpliSafe uses their own sensors, which are designed and manufactured for them.

The sensors they offer are pretty basic, so I wouldn't be surprised if they just buy 'reference designs' and tweak them for use with their base station.

Re: Cameras - supposedly video integration has been roadmapped since 2011, and the company suggests it will be released soon. No word if the central station will have access to this video (for video verification) or if it will be only for local/end user to view.

If you want to get the SimpliSafe fanbois worked up (yes, they are out there), just ask them when video is coming... it is highly anticipated among that crowd for sure.

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

Riser vs Plenum Cabling Explained on Apr 18, 2019
You could be spending twice as much for cable as you need. The difference between 'plenum' rated cable and 'riser' rated cable is subtle, but the...
Alarm.com Favorability Results 2019 on Apr 15, 2019
The once dot com startup has evolved to become a core provider for home security and is now expanding into commercial. In their first entry in...
ISC West 2019 Report on Apr 12, 2019
The IPVM team has finished at the Sands looking at what companies are offering and how they are changing their positioning. See below for 50+...
Pole Mount Camera Installation Guide on Apr 11, 2019
Poles are a popular but challenging choice for deploying surveillance cameras outdoors. Poles are indispensable for putting cameras at the right...
UK Installer CCTV Aware - Flat Pricing, No Salespeople on Apr 10, 2019
This is a different kind of company. They do flat pricing, they do not have any salespeople and 50% of their sales are sold and booked...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 09, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...
Hikvision AI Problems Criticized By Chinese Publication on Apr 09, 2019
Hikvision's facial recognition works poorly, causes delays and worsens learning, according to a new investigation by one of China's leading...
Spring 2019 50+ New Products Directory on Apr 08, 2019
We are compiling a list of new products for Spring 2019 and have over 50 already. Contrast to Fall 2018 New Products Directory and Spring 2018...
Spring 2019 IP Networking Course- Register Now on Apr 04, 2019
Register now for the Spring 2019 IP Networking course here. Just $299 for the course. This is the only networking course designed specifically...
Startup iryx Launches, Led by Ex-Arecont and FLIR Executives on Apr 04, 2019
Suddenly, the video surveillance industry is witnessing a new wave of startups. Now launching is iryx, a startup led by veterans of 2 of the...

Most Recent Industry Reports

H.265 Usage Statistics on Apr 19, 2019
H.265 has been available in IP cameras for more than 5 years and, in the past few years, the number of manufacturers supporting this codec has...
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...
Access Control Course Spring 2019 - Last Chance on Apr 19, 2019
Register for the Spring Access Control Course. IPVM offers the most comprehensive access control course in the industry. Unlike manufacturer...
Riser vs Plenum Cabling Explained on Apr 18, 2019
You could be spending twice as much for cable as you need. The difference between 'plenum' rated cable and 'riser' rated cable is subtle, but the...
Verint Victimized By Ransomware on Apr 18, 2019
Verint, which is best known in the physical security industry for video surveillance but has built a sizeable cybersecurity business as well, was...
Milestone Drops IFSEC on Apr 18, 2019
Milestone has dropped out of Europe's largest annual security trade show (IFSEC 2019), telling IPVM that they "have found that IFSEC in EMEA no...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...
Door Operators Access Control Tutorial on Apr 17, 2019
Doors equipped with door operators, specialty devices that automate opening and closing, tend to be quite complex. The mechanisms needed to...
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...
Dahua Repositionable IR Multi-Imager Camera Tested on Apr 16, 2019
Dahua has released their first repositionable multi-imager camera, the Multi-Flex 4x2MP, claiming integrated IR, true WDR, and flexible...

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