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.

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