This Intrusion Startup Raised $57 Million

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Brian Rhodes
•Published Jun 04, 2014 04:00 AM

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.

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

***** *** ******'* ********** ** ******* ** others, *** ******** ********** *** *** distinctions:

  • ***: ********** ** ******** ** *** 'do-it-yourselfer', **** ******** ** *******, *** monitoring. *** ****** *********** *** ********, battery *******, *** ******** ******* **** stickers **** *****, *****, *** *******.
  • ********** ********: **** ** ***** ** ********, options ***** **** ** ********** ******* cost ***** (****** *****) ******** ****, up ** ****** * ******* ******* station ******* (**** **** ******** ******/****) costing ******* $** - $** *** month. ******* ********* **** ******** **** smartphone *** ****** *** ****** ***/**** message ************* *** *******.

**** ** ***** ** ******** *** ****** design, ********** ** *** ******. *** central '*****' ******** ************ *******, *******, *** ******* ********* sensors *** ***-**** ****** ********** ****** ** ********* ********* *********.

Product ********

********** *********** ******* ** *** **** ***** ********, with **** ********* ******** ********** *****, more ***** *******, *** *** ********* options ********* **** ******* *** ****** buildings *** ***** *** ********* ****. Take * **** ** *** ***** video ***** *** * ******* ******** and ************ **** ** * ******:

*** *******:

***** ****** ******** *** **** '**** end', * **** ******'**** *******' ******** ************ ******** * *** *****, ** 85 ** *******, * ~** **** backup *******, *** * ****** *****. All ******* *** ********** ********** ** this ******* **** ****** ***** *** - *** **** *****.

** **** ******* *** ** ********* ** *** **** end ****, * *** ** ***** basic, **** ****** ***** ********* ***** sensors, ***** *******, *****/** *********, *** expansion ******* *** ******** ******. ******* being ******* *******, *** ******* ****** that **** ******* **** **** ** to* ***** ** ******** ***** ******* ion*********.

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

***** **** *** ****** ***** *** DIY ************ *****, *** ***** ***** platform ********** ** ******** ******* ******* monitoring *** ********** **** **** ******. The **** ***** ******* ***:

 

*** $** ******* '********' ******* ** similar ** * ***** *********** ********** offering. *** $* **** * *****, Simplisafe **** ***/***** ******, ***** ** not ******* *** *********** ******* *** a ***** *******. **********'* ******* *** package, ***********, ** $** *** *****, allows *** ****** *******, ***** ** essentially * ***-*** / ***** ********** offering.

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

** *** ********** ******, * '** Listed' ******* ******* ** *** ******** rating *** ************ ***** ******* *********. For * ******* ******* ** ******* 'UL *****' ******, ** **** **** expectations ** ******** ******, **********, *** employee ********** [**** ** ****** *********].  SimpliSafe's ******* ******* ** * '** rated' ** '** ******' *******, ******* it ***** *** *********** ********* ** many ********** ********. ** ** *** a ************** ******** ** *********** *********.

Claimed **********

********** ****** ** ****** * ****** of ******** ****** ** *********** ***** companies, *********:

  • ******** ** *****:*** ****** ********** ******** ** ******** and ******* *******, ***** ** ****** shaves ******** *** * *********** ***** system. ***** ************ ** ******* ** sticking ******* ** ***** ***** ****, the ********* **** *** *** ** less *********, *** *** **** ** changing ********* ** *** ******* *** be ~$**+ **** *** * ****** system ** ** - ** *******. A ********* ****** **** *** ******* similar ****. ************, ******** ******* *** not ******** **** ** ********* *******, and *********** *** *********** *****, ****** an ****** *** *** ***** ******.
  • ******* **********: ** **** *****, ********** ****** its ~$**-$** /***** ********** ** **** expensive **** ********** ******* ~$** -$** per *****. ******, *** ***** *******, SimpliSafe *** ** ******* *** ***** the **** '** ******' ******* ******* as **********, *** *********** ********* *** find less ********* ************ **** *********** ********** providers.
  • ** ******* *********:**** ***** ** ** ********* *** SimpliSafe. ****** ********* ***** ********* **** routinely **** ********* *** * ********** term, ***** ** ****** ** ******, SimpliSafe **** *** ******* ****** ******** ***** initial ********. ** ********** ******* ** declined, *** ****** ** ***** *********** locally, *** *** ******* *** ** cancelled ** * *****-**-***** *****.
  • ** **** ******:********** **** ****** ** ***** ** phone ********, *** **** **** ** if *********. ***** * *****-** *** radio ** *********** **** ******* ******** allows ****, *** ***** **** ** not ********* ** **********. ******, **** incumbents **** ******* ******* *** ***** systems *** ***** *** **** ****** phone ******** ************.

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

*******, ********** ***** ****** *** ********. For *******, '***** ********' **** **** or ******** ******** *** ***** ************ that *** ********* ** ******** ********* ********* **** ********* ********** ******** *** ******* ** **********.

***** ********* *** ****** ********* ** the ***** ***** ** **********, *** equipment *** ******** *** ***** ******** to **** ******** ********* ******* ********* **********.

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

*** ***** ******* ** **** *** in-house ******* ******, ********** ***** * lot ** ***** ** ** ** just *** *** **** ******* **** ($250 ** $***) ****** ~$*,*** **** a * **** ****** *** * traditional ***** ******.

*******, *** ***** *** **** ********* monitored ******, *** ***** ********** ** much ******. **** **********, *** *** the ******* **** *** **** *** $15 ******* ***. **** * * year ******, **** ** $*** ** $1,000, ***** ** **** * *********** system ***** (***** **** *** ******* cost ** ********* ******* / ********* into *** ******* ***).

**** **** ***** (* *****, *, more), *** ***** ******* ** ********** increase ** *********** ***** ********* ******** to ****** *** **** *** **** after *** ********* *** **** '**** off'. 

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

******** ** *********** ***** *******, ********** is *** ************* *** ** **** offer **** ******* *** **** *************. Indeed, ********** ** **** *** ** many *** ********* *********.

***** ********** *** ******* ** **** and ******* ***,*** *********, ***** ***, the ******* ******* ** **** ***** with **** ****** ******** *******.

*** $** ******* ** ******* **** let **** ****** ** * ******* style ******* ********* ********. *** **** is *** *** ********* / ************** here.

**** ** ********** **** *** '****' ADT, ***** ******* ** ** *********** for * *** ***** *********** ** become * ***** ******. *** **** $57 ******* ** ***** **** *** next *** ***** *** * ********** VC ****** ****, **** **** * shot ** **.