Investors Losing Interest in Security?

By: John Honovich, Published on Aug 03, 2009

VentureBeat has an interesting analysis on VCs losing interests in security startups [link no longer available]. The article focuses on the Information Security market so it is indirectly relevant to physical security/video surveillance. However, some of the key complaints cited by VCs are applicable to our market segments including: (1) not being recession proof and (2) poor performance of post 9/11 security startups.

In 7 years since the boom started, not one of the US VC backed surveillance companies has successfully exited (many have been sold in a fire sale, more are coming but none of them have returned multiples of the initial investment) and I do not see any of those companies poised for a big exit in the next year or two (at least).

On the other hand, there are still video surveillance companies receiving funding. Additionally, funding appears to have increased over the past few months. Finally, investors contacting me looking for information on video surveillance companies has increased from a few per month earlier this year to a few per week recently (just an anecdote obviously).

[Update 2011: The only IPO of a video surveillance startup in North America is Avigilon.]

Comments : PRO Members only. Login. or Join.

Most Recent Industry Reports

IP Camera Installability Shootout 2019 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Dec 09, 2019
What are the best and worst cameras to install? Which manufacturers make it the hardest or easiest to install their cameras? We tested 35 total...
Viisights Raises $10 Million, Behavior Analytics Company Profile on Dec 09, 2019
Viisights, an Israeli AI analytics startup marketing "Behavioral Understanding Systems", announced $10 million Series A funding. We spoke to...
Disruptor Wyze Releases Undisruptive Smartlock on Dec 06, 2019
While Wyze has disrupted the consumer IP camera market with ~$20 cameras, its entrance into smart locks is entirely undisruptive. We have...
Bosch Budget 3000i Cameras Tested on Dec 05, 2019
Bosch has long had a hole in its lineup for, as it describes, "competitively-priced cameras". Now, Bosch has released its 3000i series cameras...
Anixter Resisting Takeover From Competitor on Dec 05, 2019
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
Security Sales Course 2020 - Last Chance Save $50 on Dec 05, 2019
This sales course is customized for the current needs and challenges specific to professionals selling video surveillance and access control...
Ireland National Children's Hospital Chooses Hikvision End-to-End With Facial Recognition on Dec 05, 2019
The world's most expensive hospital project ever, the New Children's Hospital in Ireland, has chosen an all-Hikvision surveillance system including...
AVTech ~$70 IP Cameras Tested Vs Dahua and Hikvision on Dec 04, 2019
Taiwanese manufacturer Avtech is taking direct aim at low cost leaders Dahua and Hikvision with ~$70 starlight and white light illuminator...
Ultinous European Analytics Startup Company Profile on Dec 04, 2019
European analytics-startup Ultinous pitches customers to "Have your own video analysis service!" We spoke to Ultinous to better understand their...
Access Startup Multi-Mount Aims To Streamline Reader Installs on Dec 03, 2019
Startup Multi-Mount claims it makes installing access readers 'Fast', 'Secure,' and fit 'any size frame.' The company states its bracket 'fits most...