Facewatch Fundraise for UK Anti-Crime Platform

Author: John Honovich, Published on May 25, 2015

A foolish dream or the future of crime fighting?

A UK businessman has spent millions of his own money and now has raised nearly a million more from investors to fund a UK anti-crime platform that promises to drive down crime through sharing criminal information and real-time criminal face recognition alerts.

In this note, we examine the financial details, and the challenges the company will have to overcome.

Overview

Facewatch was founded in 2010 by one of the owners of Gordon's Wine Barwell-reviewed establishment on Yelp. The founder has put his money where his mouth is, investing over $2 million USD and taking a loan secured by his house.

Fundraising

Facewatch just raised £537,890 (~$830,000) at a valuation of ~$9 million USD.

For the past 12 months (~4 years since starting), Facewatch generated just £37,422 (~$58,000 USD) against a £1.35 million loss, reporting 9,000 premises using their service / application.

Financial Forecast

The company is forecasting hockey stick growth, as shown below, up to £11 million (~$17 million USD) by 2019:

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

The company expects to make revenue in 3 ways, roughly divided into thirds of total revenue:

  • A monthly fee per premise of > $5 to be part of the network
  • Add-on applications that businesses can purchase
  • Facial recognition / surveillance service that they can participate in so they can generate real time alerts and stop thieves

Here is the company's pitch about how it is going to do it:

The Upside

Facewatch has spent a lot of money and time seeding the market, giving away its software / offering to the police to encourage them to participate.

If Facewatch can get to a critical mass, it could generate increasing 'network effects' where it could become extremely valuable for all businesses to join (e.g., the equivalent to having a phone or all of your friends being on Facebook or Snapchat, etc.).

The UK itself is densely enough populated, a relatively small enough area and literally an island(s), that knowing or getting alerts on other criminals across the country could be extremely valuable to many retailers / business.

Finally, the founder is clearly willing to bet big on his own personal money to make this work.

The Challenges

Most obviously, the company needs to prove that it can sustain itself. Not only does the company make less most individual company security professionals, it has been and projects to continue to burn through a relative significant amount of money. By contrast, even with their optimistic financial forecast (30x growth in 5 years), they still would be doing less than $20 million annual revenue, plus a third of that is assumed to be coming from a never before done nation-wide facial surveillance sharing network.

If they can succeed, it would certainly be positive for security professionals, as such a network of crime sharing has potential benefits but, as Facewatch has already shown, a very hard task to build up. The good news is the new funding will give them some run-way to try to scale the network.

Comments (5): PRO Members only. Login. or Join.

Related Reports

Knightscope Raises $10 Million With $3,320 Average Per Investor on Aug 17, 2017
Congrats to Knightscope. And condolences to their legion of little investors. Knightscope has disclosed they have raised $10+ million from their...
Briefcam New Outsider CEO Promises Exponential Growth on Jul 31, 2017
Briefcam is now nearly a decade old, having raised over $20 million, to improve investigations and review of video. The company has remained a...
Startup Strops Completely Wireless Surveillance Camera Examined on Jul 28, 2017
European startup Strops has developed a surveillance camera that offers up to 6 days of runtime and cellular communications to create a fully...
$28M Drone Detection Startup Examined (Dedrone) on Jul 25, 2017
Dedrone has received ~$28M in funding to build what they call an "automatic anti-drone solution", a system to detect drones, and then automatically...
OnSSI Gets $16 Million Funding on Jul 11, 2017
OnSSI has had a rollercoaster past few years. Between acquiring VMS company Seetec, breaking up with former OEM partner Milestone and a rocky...
Resolver Raises $20M For Acquisitions on Jun 29, 2017
Resolver has closed a $20M funding round, and has several acquisition targets lined up already. Industry people might better now Resolver from PPM...
Startup Replacing Passwords With Patterns (Shayype) on Jun 28, 2017
This startup, Shayype, aims to eliminate passwords, replacing them with patterns. Problems with passwords are clear, as simple passwords, re-used...
Milestone / Canon Launch Cloud Startup Arcus Global on Jun 27, 2017
Milestone has spun off a business, Arcus Global, funded by their parent company Canon. The new company aims to transform the VSaaS market with an...
Deep Learning Surveillance Startups Deep Problem on Jun 23, 2017
The undeniably good news for the video surveillance market is that we are seeing the rise of more startups than in many years. The cause of this...
ESX 2017 Final Show Report on Jun 16, 2017
The ESX (Electronic Security Expo) day 3 / Thursday is done and the exhibits are over. IPVM was in Nashville covering it in-depth. Below covers...

Most Recent Industry Reports

Avigilon CEO Attacks Asian Companies Cyber Insecurity on Aug 18, 2017
Avigilon CEO is taking aim at their Asian competitors. And he is going directly after these company's cyber security issues. In this note, we...
Sony Next Gen HD Dome Camera Tested (SNC-EM642R) on Aug 18, 2017
Sony has released their latest generation, claiming improved WDR and low light, increased IR range, and more. We tested the SNC-EM642R outdoor IR...
IP Networking Course September 2017 on Aug 17, 2017
This is the only networking course designed specifically for video surveillance professionals plus it includes live training, personal help and...
Knightscope Raises $10 Million With $3,320 Average Per Investor on Aug 17, 2017
Congrats to Knightscope. And condolences to their legion of little investors. Knightscope has disclosed they have raised $10+ million from their...
Axis and Arecont Legal Conflict Over Multi-Imager Cameras on Aug 17, 2017
Arecont threatened Axis. Axis has responded by moving to invalidate an Arecont patent. It is an important contest. Multi-imagers are Arecont's...
Directory Of Consumer Security Cameras on Aug 16, 2017
The consumer camera segment continues to grow, with new startups and models from existing players released seemingly every month. In this report we...
Cat 5e vs Cat 6 vs Cat 6a Network Cable Usage Statistics on Aug 16, 2017
Cat 5e? Cat 6? Cat 6a? What do integrators use in practice, today? 140+ integrators told IPVM. Here are the results: For those who want to...
Hikvision Responds To Cracked Security Codes on Aug 15, 2017
Hikvision has responded to IPVM's report on Hikvision's security code being cracked, both with a 2 page update to dealers and communication...
Stolen Video NVR / DVR Statistics on Aug 15, 2017
"But what happens if someone steals my recorder?" Anyone who has done more than a handful of jobs has probably heard this question several times....
Hikvision Europe Cutting Out Unauthorized End User Sales on Aug 15, 2017
The days of anyone buying Hikvision from anywhere off the Internet are numbered, at least in Europe, if Hikvision's plan comes to fruition. In...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact