Examining Series D Funding

By John Honovich, Published Aug 17, 2009, 08:00pm EDT

3VR has received $12M USD in new funding. This is in addition to previous funding rounds of $5M, $15M and $10M. 3VR has received over $40 M USD total funding since launch in 2002. The round is impressive both in the size of the funding and the source of it (well respected Silicon Valley VC Menlo Ventures led the round). 

3VR's CEO emphasized the "ability to combine advanced analytics and biometrics into a single surveillance platform" as a key differentiator. However, for the last few years, open platform software providers who integrate with 3rd party analytics providers have been the fastest growing and highest revenue generating startups in the VMS market (e.g., Milestone, Genetec, OnSSI). The bundled providers have faced limitations on 3rd party support and difficulties in justifying analytics performance. Can combining analytics/ biometrics inside of a VMS overtake open VMS platforms as a trend?

In an e-mail, 3VR's CEO stated that 3VR "intends to use the additional funding to expand [their] Sales and Marketing primarily.  This will encompass both additional verticals and geographies though our investments will be deliberate and with an eye for solid returns before more expansion."

Recently, we examined the challenges VC backed surveillance startups have had with significant funding relative to sales. 3VR fits in this category. 3VR projects 2009 revenue of $15 -$20M USD. For a 7 year old company with over $40M USD in funding, that's not a lot of revenue. It will be interesting to see what the exit is for 3VR and how significantly they can grow their business to match the valuation and funding invested. As a point of comparison, Cieffe,a similar company with $15 M USD in 2007 revenue was acquired before the crash for a combination of cash and stock of approximately $25M USD by March Networks

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Investments & Acquisitions Directory 2011 on Dec 26, 2010
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