Mobotix Owner Ups Investment In Knightscope

By: Brian Karas, Published on Jun 06, 2017

Knightscope is asking for investments from literally anyone, with a public "mini-IPO". Recently the company secured some additional funding from Mobotix owner Konica Minolta, who initially invested in Knightscope's $3.8M Series A round in 2014.

In this update, we analyze Konica Minolta's additional investment, and the additional support that Konica Minolta is giving Knightscope to help their competitive position.

Konica ******* $** *** **********

*********** ******** ** "*********" $1M **********, ***** **** * commitment *** ******* $** if ******* ******** ********** were *** ** *** company. **** ********** **** be **** ** ***********'* mini-IPO ********, ***** **** are ****** ** ***** a ***** ** $*** under *********** *+ ********.

****** ******* **** ******** an *********** ****** ** Knightscope's ****** * *****.

Service ********* ******* *********

********** ***** *** ******** *** **** that **** *** ******** a nationwide ******* ******* *** their ****** ** * key ******* ** *********** and *********. *********** **** be ** * ******** to ***** ******* ******** through ****** *******. ** addition ** *** **** investment, ****** ******* **** also *** ** * national ****** ******* ******** for *********** ***** ** customer *********. ** ******* on ****** ******* *** in-field ******* *********** *** avoid *** ***** ** dispatching ********* **** **********, or ****** ** ***** local *********** *******.

Investment ********

** ** ****** *** early ********* ** ******** to ****** ** ********** funding ****** *** * company. *** **** **** Konica ******* *** *** make ***** $** ********** ********, tying *** ******** ** it ** ***** **********, or ******** ***** ********** earlier ** ***********'* **** raising ******* ***** ******** that ****** ******* ** skeptical ** ***********'* ******, *** felt ** ********* ** provide ********** ********* ******* to ******* **********'* **********.

Benefit ** ***********'* ***********

****** **** ********** ********** from ****** ******* **** not **** *** ****** criteria ** ** ******** that ** ****** ********** about * *******'* *********, Knightscope *** **** **** as ********* ******** **** an ******** ********, *** use ** ** ******* promote ***** ****-*** ********. This *** **** *** company ******** ********** ********* that *********** ** * good **********, **** ****** the$*** ********* ** **** than $** ** ******* would ******** *********.

Comments (9)

Jeremy Ellis

06/06/17 09:11pm

What could possibly go wrong if "Mobotix" is involved? 

Josh Bylsma

BLUEmark Technologies
06/07/17 01:01pm

Has Knightscope provided any information on what they expect the market size to be, in terms of annual revenue and CARG? 

I do not plan to invest, but am simply curious how they are justifying the investment requests to investors and the proposed ROI. Unless their plan is to simply build and dump... i.e. greater looser approach.

I have to admit, that in idea alone, the roaming guard robot is interesting, however I struggle to see the true market potential. It feels more gimmicky than a viable security and business solution. 

John Honovich

IPVM | In reply to Josh Bylsma | 06/07/17 01:16pm

Has Knightscope provided any information on what they expect the market size to be, in terms of annual revenue and CARG?

From Knightscope's SeedInvest page:

Globally the 200+ countries around the world spend over $500 billion per annum on security in the public and private sector with approximately $300 billion addressable by Knightscope's plans and aspirations. We believe it to be possible to build a $30 billion company focused on advanced physical security technologies with a portfolio of products around the world. As the global population grows from 7 billion to 9 billion people, we believe the worldwide security and law enforcement apparatus will not scale and will require new solutions.

In the U.S. there are 8,000+ private security firms and 17,985  law enforcement agencies - a fragmented marketplace which we believe offers numerous opportunities for disruption. There are 3 major private security firms in the U.S. and Knightscope is partnered with 2 of them: Allied Universal and Securitas. Knightscope can help our channel partners in the private security industry with margin expansion, competitive advantage in the marketplace and long-term employee and client retention by providing a 'sticky' technology set. Globally, G4S employs 600,000 people, Securitas 300,000 people and the new Allied Universal will employ a combined 140,000 people.

Not clear if they mean a $30 billion market capitalization or revenue but, either way, with a current market valuation of ~$100 million, that would be a great return.

How they get to $30 billion is, of course, the hard part. 

Avatar

Brian Karas

IPVM | In reply to Josh Bylsma | 06/07/17 01:25pm

They have the following slide in their pitch deck:

Somewhat surprising (to me) is that the machines are only rated for a 5 year service life, and the COGS is roughly equal to first year revenue (~$60K).

Then there are still costs for sales and marketing, staffing their "KSOC", and most likely some amount of maintenance/repair costs over that 5 year lifespan. 

Josh Bylsma

BLUEmark Technologies
06/07/17 02:32pm

Very interesting. Thanks for sharing.

I also find their growth strategy to be a bit aggressive. Assuming that their market assumptions are correct, and that there is a $300 Billion market for security robots, one could make the argument that the growth numbers for an early entrant would be substantial. However, I do find these a bit aggressive. 

YR1 100>597 - 497% YoY

YR2 597>1,569 - 167% YoY

YR3 1569>3950 - 151% YoY

YR4 3950>7978 - 102% YoY

The support, sales and technical resources to support ~8000 robots in the field around the world will be very costly as well. Without true market data, it is near impossible to calculate the on-going operational costs of each unit. 

Avatar

Vincent Tong

07/17/17 08:26pm

Look what popped up today in my feed.  Suicidal robots

original source

John Honovich

IPVM | In reply to Vincent Tong | 07/17/17 08:31pm

Vincent, thanks for sharing! It looks like that might have just happened because the image was posted just over a half hour ago from DC. @Karas ask Knightscope for comment please.

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 07/18/17 02:08am

They are really putting the old adage "Any news is good news" to the test...

Undisclosed Manufacturer #2

07/18/17 03:55am

I can hear it speaking now "Do not toss foreign objects into fountain.  I must retrieve evidence"!!

Well, there's my 2 cents worth on how to defeat a K5 Robot. 

For those old enough to remember "Danger Will Robinson, Danger"

Read this IPVM report for free.

This article is part of IPVM's 6,538 reports, 881 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Canon Company Milestone Takes $1+ Million PPP Money on Jul 16, 2020
Milestone, a Canon company, took $1 million+ in PPP loans, despite being part...
OnSSI Founders Return, Start Corsight on May 25, 2020
The OnSSI founders are back, less than 2 years after selling OnSSI to...
Qumulex Presents Unified VMS and Access Control on Jun 08, 2020
Qumulex presented its unified video management and access control system at...
Wyze Raises $10 Million, Now $15 Million, And Seeks Services Expansion on May 27, 2020
Wyze has raised $10 million, the company's first disclosed raise since the...
Drako's Companies (Brivo, Eagle Eye) Take $4+ Million in PPP Funds on Jul 14, 2020
While centimillionaire Dean Drako is the owner of two of the largest SaaS...
70+ Security Industry Companies Take $50 Million PPP Funding on Jul 15, 2020
70+ security industry companies have taken more than $40 million in PPP...
Motorola Solutions Acquires Pelco on Aug 03, 2020
Motorola Solutions has acquired Pelco, pledging to bring blue back and make...
Proxy Acquires Ring Maker Motiv on Apr 29, 2020
Fresh off of raising $42 million, access startup Proxy has acquired...
Mobotix Thermal Detection Camera Tested on Jun 09, 2020
For years Mobotix has struggled but now sales are surging driven by Mobotix's...
Sequr Presents HID based Cloud Access Control on Jun 04, 2020
Sequr presented HID based Cloud Access Control at the May 2020 IPVM Startups...
Milestone XProtect on AWS Tested on Sep 21, 2020
Milestone finally launched multiple cloud solutions in 2020, taking a...
JCI "Fever Camera" Partners With China TVT on May 19, 2020
Johnson Controls (JCI) is the next big player to get into the 'fever camera'...
Directory of 96 Video Surveillance Startups on May 20, 2020
This directory provides a list of video surveillance startups to help you see...
Hikvision MinMoe Temperature Screening Terminal Tested on Jun 23, 2020
Hikvision has expanded its temperature screening options. We tested...
Proxy Presents Mobile Credentials For BLE Devices and Access on May 29, 2020
Proxy presented Mobile Credentials For BLE Devices and Access at the May 2020...

Recent Reports

Hanwha AI Object Detection Tested on Sep 28, 2020
Hanwha has added detection and classification of people, cars, clothing...
Favorite Access Control Manufacturers 2020 on Sep 28, 2020
200+ Integrators told IPVM "What is your favorite access control management...
New Products Show Fall 2020 Starts Tomorrow! on Sep 27, 2020
Tomorrow, IPVM's sixth online show will feature New Products from over 25...
OnTech Smart Services Partners With Google and Amazon To Compete With Integrators on Sep 25, 2020
A pain point for many homeowners to use consumer security and surveillance is...
The Future of Metalens For Video Surveillance Cameras - MIT / UMass / Immervision on Sep 25, 2020
Panoramic cameras using 'fisheye' lens have become commonplace in video...
Hikvision Sues Over Brazilian Airport Loss on Sep 24, 2020
Hikvision was excluded from a Brazilian airport project because it is owned...
China General Chamber of Commerce Calls Out US Politics on Sep 24, 2020
While US-China relations are at an all-time low, optimism about relations...
Verkada Disruptive Embedded Live Help on Sep 24, 2020
Call up your integrator? Have someone come by the next day? Verkada is...
IP Networking Course Fall 2020 - Last Chance - Register Now on Sep 23, 2020
Today is the last chance to register for the only IP networking course...
Drain Wire For Access Control Reader Tutorial on Sep 23, 2020
An easy-to-miss cabling specification plays a key role in access control, yet...
Norway Council of Ethics Finds Hikvision Human Rights Abuses "Ongoing" on Sep 23, 2020
Hikvision's involvement in "serious human rights abuse" in Xinjiang is...
IPVM Camera Calculator User Manual / Guide on Sep 23, 2020
Learn how to use the IPVM Camera Calculator (updated for Version 3.1). The...
Installation Course Fall 2020 - Save $50 - Last Chance on Sep 22, 2020
This is a unique installation course in a market where little practical...
SimpliSafe Business Security Launched Examined on Sep 22, 2020
SimpliSafe has launched "SimpliSafe Business Security" that the company...
FLIR CEO: Many New Fever Entrants "Making Claims That The Science Just Won't Support" on Sep 22, 2020
FLIR's CEO joins a growing number calling out risks with fever / screening...