Examining Firetide's 5th Round of Funding

By: John Honovich, Published on Oct 07, 2009

With a fifth round of $8.5 Million USD, Firetide's total funding is over $50 M USD - an amazing level for the video surveillance market. Equally interesting is the investment from a publicly traded company - ESCO Technologies [link no longer available] ($1 Billion USD market capitalization and over $600 Million USD annual revenues).

As we reported in August 2009, while 60% of Firetide's revenue comes from video surveillance projects, they are aggressively expanding into other markets, especially Smart Grids for utilities.

ESCO is a notable step in expansion towards Smart Grids. In conjunction with the investment into Firetide, ESCO announced a strategic alliance agreement with Firetide [link no longer available]. Specifically, ESCO has a solution called the Alcara Smart Communications Network. Firetide wireless technology will facilitate that communication for utility users. For more background on ESCO and their Alcara solution, see their 2008 annual report [link no longer available].

Smart Grids are 'hot' right now. Cisco, for instance, projects just the communication portion of smart grids to be a $20 Billion USD annual market [link no longer available]. A research analyst is projecting the market to be $17 Billion USD [link no longer available] by 2014.

Given the very high level of investment in Firetide (relative to the video surveillance market), it is likely critical that Firetide expand significantly outside of video surveillance. Our market is too small to support the revenue levels needed to support a $100 Million plus valuation (probably necessary for Firetide's investors for the company to be a success). This would be difficult for a video management or camera provider but even harder for a company specializing in a niche within a niche (wireless systems for video surveillance).

[Update 2012: Firetide has not announced any further funding. However, the company's marketing and industry presence has declined significantly. Additionally, their CEO has departed.]

3 reports cite this report:

The Sad Finale For Firetide (Unicam Acquires) on May 19, 2014
It was inevitable. After burning through ~$50 million over the past decade, the former poster boy for wireless video surveillance, Firetide, has...
Investments & Acquisitions Directory 2011 on Dec 26, 2010
This directory provides a single source of information on funding and acquisitions in the video surveillance market. It is part of our Video...
Azalea Acquired: Wireless Video Surveillance Deal Examined on May 09, 2010
Azalea Networks, a wireless mesh provider specializing in video surveillance applications was acquired [link no longer available] by Aruba...
Comments : PRO Members only. Login. or Join.

Related Reports

OpenALPR Acquired By Mysterious Novume on Mar 13, 2019
Startup OpenALPR has been acquired by Novume, a company virtually unknown in the industry. While there are many LPR providers (see our directory),...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 10, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
Fujifilm Expanding Into Video Surveillance on Jul 26, 2019
While Sony continues to fade out of the video surveillance market and Canon continues to make huge investments into acquiring video surveillance...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Struggling Arcules Changes Chief Revenue Officer on Oct 29, 2019
Canon / Milestone spinout Arcules has struggled, now changing their Chief Revenue Officer, just a year after he came on board. The issue is not...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...

Most Recent Industry Reports

Breaking Into A Facility Using Canned Air Tested on Jan 28, 2020
Access control is supposed to make doors more secure, but a $5 can of compressed air may defeat it. With no special training, intruders can...
ROG Security - Cloud AI For Remote Monitoring on Jan 28, 2020
ROG Security is offering cloud-based AI analytics to remote guard companies, by touting having "nothing to install" to "add virtual guards." We...
Brivo Business Profile 2020 on Jan 27, 2020
Brivo has been doing cloud access for more than 20 years. Is the 2020s the decade that cloud access becomes the norm? CEO Steve Van Till recently...
Favorite VMS / NVR Manufacturers 2020 on Jan 27, 2020
In 2018, a new winner emerged and a former top choice declined. Now, there is a new #1, a new top 5 finisher and 2 major VMSes in decline. Our...
"Hikvision Football Arena" Lithuania Causes Controversy on Jan 24, 2020
Controversy has arisen in Lithuania over Hikvision becoming a soccer team's top sponsor and gaining naming rights to their arena, with one local MP...
Axis and Genetec Drop IFSEC 2020 on Jan 23, 2020
Two of the best-known video surveillance manufacturers are dropping IFSEC International 2020, joining Milestone who dropped IFSEC in 2019. The...
Multipoint Door Lock Tutorial on Jan 23, 2020
Despite widespread use, locked doors are notoriously weak at stopping entry, and thousands can be misspent on locks that leave doors quite...
Avigilon Shifts Cloud Strategy - Merges Blue and ACC on Jan 23, 2020
Avigilon is shifting its cloud strategy, phasing out its Blue web-managed surveillance platform as a stand-alone brand and merging it with its ACC...
Verkada Paying $100 For Referrals Just To Demo on Jan 22, 2020
Some companies pay for referrals when the referral becomes a customer. Verkada is taking it to the next level - paying $100 referrals fees simply...
Camera Analytics Shootout 2020 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Jan 22, 2020
Analytics are hot again, thanks to a slew of AI-powered cameras, but whose analytics really work? And how do these new smart cameras compare to top...