The Rise of SaaS - Physical Security Fund Raising 2020

By John Honovich, Published Dec 28, 2020, 08:24am EST (Info+)

While incumbents largely struggled to deal with the effects of COVID-19, SaaS focused startups raised over $300 million this year.

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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:

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 * ****** ****** ******* *****.

Comments (2)

Moving from a Fortune 1000 company to a much smaller operation I now see the appeal of SaaS. Not having a dedicated team that supports and understands the ins and outs of security (specifically access control and CCTV) SaaS starts to sound like a good option.

However, not understanding the ins and outs can be quite dangerous now due to the ever-increasing number of options, the promises they make, and how you can be left with bricks if you don't make the right choices.

Agree: 2
Disagree
Informative: 1
Unhelpful
Funny

It is sobering to see the number of end users who get sold on the proprietary centric cloud services when there are so many choices with more open platforms, simply because someone's marketing department got to them first.

Agree
Disagree
Informative: 1
Unhelpful
Funny
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