DVTel's $9 Million Fund Raising and FutureBy John Honovich, Published May 20, 2015, 12:00am EDT
DVTel's CEO tells IPVM that they have completed a 'turnaound' and that they are ready for more aggressive expansion and even acquisitions with their new $9 million in funding.
Inside this note, we examine what three key improvements DVTel claims to have made, where they are at today and how they are planning to expand.
DVTel's CEO Yoav Stern [link no longer available] cited three key elements to the 'turnaound' he says has occurred since he joined in 2012:
- Fixing their high-end products. He admitted that their Latitude VMS was too complicated and required too much integrator involvement to make work. Now, he says Latitude is much easier to use. Additionally, they have stopped manufacturing any cameras in Isreal, moving to design / ODM with manufacturing in Asia (not China).
- Developing a mid-tier product offering, acknowledging that the high-end market is small and a high-end VMS cannot be forced into the mid-market. He says they spent millions in R&D developing their Horizon mid-tier NVRs [link no longer available] with a simpler user experience.
- Upcoming releases of Cyber Defense and an enterprise VMS cloud offering. Cyber Defense will consist of ‘Port Authority’ which scan ports on the outside of the corporate network for any in-bound threats and ‘Client Shield’ which creates a virtual computer / sandbox, not allowed to interface anything else on corporate network but the DVTel video client. At the end of 2015, DVTel expects to release a cloud VMS that they are focusing on the enterprise / business market.
DVTel's CEO says the company has been cash flow positive since 2012 and had its best revenue in 2014 and best overall quarter in Q1 2015. He did not disclose any specific dollar numbers.
Investment and Future
DVTel announced $9 million [link no longer available] 'capital infusion investment' raised this year.
DVTel's CEO mentioned 3 core uses for this:
- More aggressive on working capital for sales expansion
- More money on R&D and marketing
- Acquisitions but only if the fit and opportunities were right
One specific change underway is with the channel. Historically, DVTel was a dealer only model. Now, with their expanded mid-market offerings, DVTel plans to open up the mid-market products (but not Latitude) to general distribution, without requiring certification nor training, as most manufacturers do.
One of DVTel's biggest problems is simply market awareness. They have not marketed much over the past few years and, from what we see from our integrator members, DVTEl is mostly out of sight, out of mind. DVTel's CEO says they recognize the marketing problem and focused first on improving the product and are now going to expand marketing.
DVTEl had a high-end, feature-rich VMS even 5 years ago when we tested it, though it was cumbersome and had issues then. If they can deliver an easier to use high-end VMS and market it more, it does have potential. Cyber Defense appears niche but it could resonate / differentiate for those larger buyers who are very concerned about security risks (real or perceived). Their analytics (from ioimage) are still competitively strong (see our test results) but also suffer from lack of marketing / awareness.
Overall, we see this as a positive sign for the company but will have to see if and how they gain re-gain relevancy with the broader market.
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