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)

*ò** ***. ** **** ** ** ** ***** ********* *** to ******* ********** *** ***** ****** ** ****** ******.

***** *** ***** * *** ********* *** ***** **** *******-***** based ** **** *******. ** **** **** ****** '***** *******', a ******* ***** *** **** ******* ***** ********. *** **** thing * *** *** ***** *** *********** ** - **** are *** **** ****** ** *** ** ****' ***********.

**** ********** ******** *** ******* ** **** **** *** ***** excellent ***** *** *****.

******** ** *******,********** ******** ****** ********** ** ****.

***, **** **** ******* ** *******, ************* ** *** **** irrelevant, ** ** *** ******* ** ***** ***. **'* *** about ****** ***** ******, ****** ********** *** **** ** ******/*****/********/******/********...

***** *** ***** * *** *********** ** *** *** ******** market. ***** ********** * *** ** **** ********** *** **** running *** ** *** ***** ** ******* ****** ** *******, a *** ****** ******** *** **** ** *****.

*****, * ***** **** ***** *** * ****** ** ***********. Do *** ** **** **** ********************* **** ***?

**, *** ***** **** **** ****** *********** **** *** ******* that **** ** *** ****** -

****** **** ** *** ** *** *** *** ******** ****** that ***** ** **** ***** *** ********* (*** ***** * packaged ********* ** ** ********) **** ****** **** *** **** OEM ***** ********* **** ** ** **** ******** ************ *** engineered ***** *** ********?

**** **** ****** ** **** * ****** ***** ** ***** system, ***** * ** **** **** **** ** ****** - lots ** ****** *** ******** ******** ***** ***** ** ** verification ** ***********.

***** *****:

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

*** ******* **** ***** *** ****** *****, ** * ******'* be ********* ** **** **** *** '********* *******' *** ***** them *** *** **** ***** **** *******.

**: ******* - ********** ***** *********** *** ******************* ****, *** *** ******* ******** ** **** ** ******** soon. ** **** ** *** ******* ******* **** **** ****** to **** ***** (*** ***** ************) ** ** ** **** be **** *** *****/*** **** ** ****.

** *** **** ** *** *** ********** ******* ****** ** (yes, **** *** *** *****), **** *** **** **** ***** is ******... ** ** ****** *********** ***** **** ***** *** 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

Milestone / Canon Launch Cloud Startup Arcus Global on Jun 27, 2017
Milestone has spun off a business, Arcus Global, funded by their parent company Canon. The new company aims to transform the VSaaS market with an...
Deep Learning Surveillance Startups Deep Problem on Jun 23, 2017
The undeniably good news for the video surveillance market is that we are seeing the rise of more startups than in many years. The cause of this...
ESX 2017 Final Show Report on Jun 16, 2017
The ESX (Electronic Security Expo) day 3 / Thursday is done and the exhibits are over. IPVM was in Nashville covering it in-depth. Below covers...
Hikvision Ezviz Mini Trooper Totally Wireless Camera Tested on Jun 13, 2017
Totally wireless cameras are a major growth trend in video surveillance, driven by consumer demands to eliminate wiring. Hikvision is now joining...
Anomaly Analytics Developer iCetana Raises $6M For US/Europe Expansion on Jun 12, 2017
Australian-based iCetana says their GPU-based anomaly detection analytics are proven and ready to expand globally. To do that, they have raised $6M...
RMR Integrator Importance Statistics on Jun 08, 2017
How do integrators feel about offering RMR / recurring revenue services? For many, their business revolves around RMR, while others see no...
Samsung SmartCam A1 Totally Wireless System on Jun 06, 2017
Hanwha is keeping the Samsung brand alive in consumer cameras with the SmartCam A1, a new offering combining an autotracking 1080p camera with base...
Mobotix Owner Ups Investment In Knightscope on Jun 06, 2017
Knightscope is asking for investments from literally anyone, with a public "mini-IPO". Recently the company secured some additional funding from...
Jeff Bezos-Funded Deep Sentinel Security Startup on Jun 05, 2017
Deep Learning is a rising trend in many commercial security products, and now one entrepreneur wants to bring deep learning to residential...
Security Yard Signs and Stickers Guide on Jun 05, 2017
Many security integrators use signs or stickers with their company name and logo. Posting these in front the homes of residential customers...

Most Recent Industry Reports

Avigilon VP Communications Exits on Jun 27, 2017
In 2016, Avigilon hired an executive, Darren Seed to: build and maintain strategic relationships with the investment community and to...
Hikvision H.265+ Tested on Jun 27, 2017
Hikvision, which in the past few years released H.264+ (see test results) has now released H.265+, that claims even greater bandwidth savings. We...
Milestone / Canon Launch Cloud Startup Arcus Global on Jun 27, 2017
Milestone has spun off a business, Arcus Global, funded by their parent company Canon. The new company aims to transform the VSaaS market with an...
Biometrics Pros and Cons For Electronic Access Control on Jun 26, 2017
Biometrics has been long sought as an alternative to the security risks of cards, pins and passwords. While biometrics has improved somewhat over...
Manufacturer Sales People Are Very Important - Statistics on Jun 26, 2017
IPVM's new integrator statistics show what sales people say regularly: Sales people are very important. From 150 integrator...
No Personal Opinions About Work on Jun 26, 2017
One rising trend is the tendency for people to disclaim their statements on work related topics as their own 'opinions' or 'personal...
Importance of Sales To Integrators - Statistics on Jun 23, 2017
One of the top trends in the industry over the past few years has been the rise of across-the-board sales (e.g.: Hikvision Sales, Dahua Sale,...
Deep Learning Surveillance Startups Deep Problem on Jun 23, 2017
The undeniably good news for the video surveillance market is that we are seeing the rise of more startups than in many years. The cause of this...
Avigilon Announces RADAR-Based Presence Detector on Jun 22, 2017
RADAR is gaining momentum within physical security. Two months after Axis announced a network radar detector, Avigilon has announced a RADAR-Based...
Covert Cloud Camera Service Launching (KJB) on Jun 22, 2017
Cloud IP cameras, for consumers, has become increasingly commonplace. However, covert cameras, lag there, with few options. Now, North America's...

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