Investors Losing Interest in Security?Author: John Honovich, Published on Aug 03, 2009
VentureBeat has an interesting analysis on VCs losing interests in security startups. 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.]
Most Recent Industry Reports
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.