The Rise of SaaS - Physical Security Fund Raising 2020
While incumbents largely struggled to deal with the effects of COVID-19, SaaS focused startups raised over $300 million this year.
This provides them a strong foundation to attempt to disrupt incumbents.
IPVM covered each of these raises throughout the year, with dedicated reports linked below:
- Verkada Raises $80 Million
- Flock Safety Raises $47 Million
- Anyvision Raises $43 Million
- Proxy Raises $42 Million
- Eagle Eye Networks Raises $40 Million
- Openpath Raises $36 Million
- ButterflyMX Raises $35 Million
- Solink Raises $17 Million
Additionally, Google invested $450 Million in ADT and, just this month, ZKTeco filed for an IPO planning to raise $190 Million.
Inside this note, we examine the overall trend, why it is important to understand, and the financial cases for each company that raised funds.
SaaS ******
********* **** ****. ** ********, ******** security ***** *** ********* (***-****) ******* purchases. ******* ** *** **** ** better *** ****** ** *********.
**** ** *** ********* ** **** the ******** ** ******** ******* ***** new ******** **** **** *** ******* to ************ ****** ***** ***** *** marketing, *** ***** **********, **** ******* ability ** ***** ** ****** *****, and ***** **** *****-** ********, **** in ***** ** ******* ** ***** own *****.
Power ** **** ******* / ********* / ****** *****
** **** ********, ******* ***** ** often ****** **********. ***, ** *****, a **** ****** ** ****** ******** (like ***, ********, *** ******, ** name * ***), **** **** **. Indeed, ***** *** *** ** ****** success ******* ** **** ******** (*** no ********** ***** **** ******* ******).
*******, **** **** ****** ***** ** different. * *** ********* ********: (*) less ***********, *.*., ***** ********* *** challenged *** ** *** ****, (*) few ***-** ******** (**** *******), *** (3) **** ** ********** ** *** incumbent's ******** *****, ** ********* **** past *** ******** **** ***, ********, and ****** *** *** ****.
*******
***** *** * ** ***** ******** lead **** ************ *********, ******* *** the ********* ********* *****,***********. *** *********** ****** ******** *****,******-** ********, ********* ***** *********** ** ****-********** ** ******* *** industry.
** *** ****** **** ******* *** be ********** ** *** *******, *********** to **** *** ***** **** * closed ******* ******** ******** *********, ** could ************* ****** ** ******** ****, for *******, *** ******* **** ***** on **** *********.
Flock ******
***** ***** ** ****** ***** ** the ******** *** *** ********* ********** as ******** ** ***-****, *** ******* secured * ************* *******$** ******* ***********.
*** ********* *** **** **** **** a ****** *********** ********** (* *********** company) *** **** ******* ***** ********** a ***** ** ***.
***** ***** **** ** ********* ** 'solve **** *****', ***** ***** **** up ******* ** ** ****. ***** funding *** ***** *********** ****** ******** them * **** ** ******** * major ***** ************ ******** ** *** next * *****.
*********
********* ** ** ******* ** **** list, ** *** *** ***** ********* were *** *******. *******,********* ******** ***** $** ******* ***************** ***** ******* ******* *** ********** scrutiny ** * **** ****** (****** recognition) **** ** ****** ********* ****** criticism.
** ****, ********* ***** ** * turnaround ****, ***** * *********** ******* figures ****** ***, *** ** **** not **** *** **** ********* *** figured *** * ********. ****** **** do **, ** ****** ********* ** be ** **** **** * ***** player ** ***** ************ *** ****** control (******* *************).
*****
***** ** *** ** * **** of *** ****** ******* ********,******* $** ******* **** ****. ***** ********-***** *****, ******* ** selling ** ***** ********, ** **** a ****** ** ********* ***. ******,*** *** *** ****** ***** '*********' devices**** ***** ******** *** ***** **** ******** **** HID ****** ************.
*** ********** **** ***** ** **** they *** *** *********** ********** ** a ********* ***-**-*** ****** ******** (***** Software ***** ** ** ** **** new ******* ********). *** ****** ** greater (***** ***** ****** *** '***' HID) *** *** **** **** ** higher.
Eagle ***
***** *** ** ****** * ****** old *** ***** *** ******* ** not ************ ***** *** ****** (* managed ***), ***** *** *** ******** well ******* ********* $** *********** ****. **** **** **** ** a ****** ******** ** ********** ** the ******* ***** ************ ****** ******* the *****. ***** ***** *** **** not ******** *** ******, **** **** the ********* ** ** **** **********'* equivalent ** ******** ******** ******** ** Milestone ********.
********
******** ******** * *********** ** ****** cloud *** ****** ****** *******, ******* $** ******* **** ****. *** *******'* ******* **** ** still ********** ***** (****** **,*** ***** doors **** ****) *** *** *********** of ******* **** ******** **** ***** and ****** **** ***** **** ** stand *** ******* **** ********* ****** control *********.
* *** ***** **** ** *** fast *** *** **** ******** *** build *** *** ******* ******** ****** control ******** **** **** ****** **** or *******.
******
****** *** ******* ***** * ***** cloud-based ***** ********** ********,******* $** ******* **** **** **** the *********** ********* ** *** **** ******. It ** ******* ** ** *** big **** **** *** *** **** are * **** ******* ** *** combination ** **** **** ** ******* allow **** ** **** ***** **** from ********** **** ** ***** ******** and ******.
***
****** *** ******** *****, *** ** 100+ ***** *** *** **** ********* the ****** ** *** ********. ** least *******, *** *** ******** **** good **** *** ******** *** * soaring ***** ******** ******** ** ***. *******, ****** *****, ***'* ***** sank **** ****** ** ** *** same ****** ** *** ***-****** **********.
*** ********** ** **** *** ****** now ******* ****** ** *** ** much ** * ****** ** ****** ADT's **-**** **** *********** ******.******* ** ******* ******* ********* ********* this ** **** ** * ****** deal ****** **** ******** *** ***** ******** than ** ** ** *********** **** the ****** ** ***.
*******, ******* ********** ** ****, ******* Google's **********, ***'* ***** ***** **** sunk *** ******* *** **** ****** is ******* ** ***** *** ****** facing ***.
****** ***** **** *** ** *** ADT, **** *** **** ******, *** the ****** *** **** ** *** industry ***** *** *** ** *********** risk ** ********** ******.
******
'*****' **** *** **** ** ****** control ********** ** ******* ***** ************ companies ***** ** *********. ******* ****** can ****** **** *******? ***** ***** and ********* *** ******* ****** *******, they **** *** **** ** **** much ***** ** ************** (****** ***** their ***** ********** *** ************ ******* business, **** ** **************).
** ********, ****** *** ********** ******* grown ** ** * ********** ***** access ******* *******, **** ~$*** ******* revenue ** ****.
***, ***** *** ***** ** *** ~$190 ******* ** ******* ********* ********* to **** * ** ******* (***** would ** *** ***** *** * China ******** ******** *******). ******* **** comes ** ******** ******* ** ** seen ***, **** ***** ** ********* that **** ****** *****, *********** ** a ******** **** ** ******** ******** plans. ** ****** ******** ** **** IPO, **** **** * **** ** becoming * ****** ****** ******* *****.
** ** ******** ** *** *** number ** *** ***** *** *** sold ** *** *********** ******* ***** services **** ***** *** ** **** choices **** **** **** *********, ****** because *******'* ********* ********** *** ** them *****.
****** **** * ******* **** ******* to * **** ******* ********* * now *** *** ****** ** ****. Not ****** * ********* **** **** supports *** *********** *** *** *** outs ** ******** (************ ****** ******* and ****) **** ****** ** ***** like * **** ******.
*******, *** ************* *** *** *** outs *** ** ***** ********* *** due ** *** ****-********** ****** ** options, *** ******** **** ****, *** how *** *** ** **** **** bricks ** *** ***'* **** *** right *******.