Latch Goes Public, Raises ~$500 Million At $1.56 Billion Valuation
Unprecedented for access control, Latch is going public, raising ~$500 million which gives Latch a $1.56 billion valuation despite doing less than $20 million in revenue last year.
In this report, IPVM examines Latch's plans, including:
- Unprecedented Deal in Access Control
- Merger with Tishman Speyer SPAC
- Current Offerings
- Financial Performance
- Market for Growth
- Users Locked-In with Latch
- Expansion Plans
Unprecedented **** *** ******** ******** *******
*********************'***** *********** ** $** *** $** million *** ******** *** ****** *******, Latch ** ******* *** **** ****** in *** *********** ******* ***.
***** **** ***** **** * **** (special-purpose *********** *******) ********* ** ******* Speyer, * ********** ****-****** ******* **** $50+ ******* ** ****** ****** **** is*************** ************, * ****-***** **.
******** *** ******* ** *****'* ******** is *********, *** ***** ****** ** funding ** **** ******* *** *** backing ** ******** ********* **** ******** its ********* *** ******* *** *** it ** **** ************ ********* ** aggressively ****** *** ********.
Latch's **** ****** ******* **** ************
** ***** **** ***** *****'* *********, see ***** ************ ** *** **** 2020 ****** ******* **** ******** *****:
Current ********* *********** - ~$** ******* *** ******* ** ****
***** ************ ~$** ******* *** ******* ** 2020 ****** ** ** ********** *** pre-money ********* ******** ** *****. ******, Latch's ****-****-**** ****** *** * ********** 21% ** ****.
*******, ***** ******* *** ******* ** $600 ******* ** ****, **** * five-year **** ** ***.*%, ** *** its *** ******* ** **** ** over ***.
** ** ** ********** ********* *********, as *** ***** ** ***** *********** shows *****:
*** *******'* **** ******** **** $** million, ****** $** ******* *** *** year. ***** ******* ** **** ******* quarter-billion ******* **** **** - ****, generating ******* ******** ** ****.
Hardware ** ******** *****
** *** $** ******* ** ******* in ****, **** **** */**** **** from ********, **** ***** ********** **** most **** ***** **** **** ******** even ** ****:
** ***** ** ****, ***** ********* they *** ******* ***** ******** ** a ****:
** *** ****** **** *** ** lock ********* ** *** ****** ***** from ***, **** ** * ******** strategy.
Gross ******* ********* ******
***** ******** ** ******** ** **** primarily ******** *** **** * ***** from ***, ******** *** ***** ******* to ** **** **** **%, *.*., gross ****** ** *** ******* ** the **** *********** ***** ***** *.*., -12% ***** ******* ** **** *** 46% ***** ******* ** ****:
Booked ******* ******** ***********
***** ************ ******* * ***-**** ****** called "****** *******" ******, *** *******, $167 ******* ** ****, ** **% from ****, *** **** ****** ****** not ** ******** **** ********** ******* for *** ****.
** ***** **** *****, ****** *** of ***** ********* ****** * **** upfront, ***** ** **** *** ******** future ******* *** ****** ** ********** and ******* ** ******* ***** ** is **********:
Lock-In ****** ****** ** *********
***** ******** * ******** ***** ***** launching ** *** ****** ** ****. Latch ******** ** **** *** *** upfront ***, ** ***** ******** ** the ******* *****, ****** *** ****** for *-**** *********.
**** ********* ****** ** ****-** *** touted ** ************ ** *** *************** ******:
**** ********* ** ** **** ********* for ***** ******* ** ***** **** remain * ****** ******* ******* *** (net ****** *********)
***** *** ****** ** ***** ********* is **** ****, ****-** ***** ******* that.
********,*****'* ********** ********** ** ******* ******** ** * loss ** **** ********* ** ****-****:
Significant ****** *** ******
***** ** ********* ** **** **** 1% ** *** *********** ****** ***** but *** *** **** *** ** not **** *** $** ******* ** rental ****** *** **** *** $** billion ******** ****** ******. ***** *** US **** **** *** **** ******, Latch ***** ** ****** **** ****** first ** *******, ******, *** *** UK ** "********** *** *********** **** Tishman ****** *** ***** ****** ** those *******."
Latch ********* ***** - ***** **********
*****'* ******** ************ ****** ***** ***** for ********* ***** ******** *** *** expanding *** ** *** *********** ***** to ********** *******. ***** ******** ** the ******* ******* ***** **** ***** users ** ****** ******** ********, ***** insurance ********, *** ******** ******* ******* Latch **. ***** ***** **:
******* ********* ** ***** (******* ****** per **** ****) ** ********** ********* with *** ********* **** ********, ***** Home, *** ****, *** ********** ******* the ******* ******* *********
** ***** ******** **** ******** *** its *********, ** ****** ***** ** inevitably ****** **** ***** ************ ** well *** **** * *** ** being * ***** ***** ************ ********.
~$500 ******* ******* *** *********
***** ***** **** **** ********** ******* $3 ******* ** ****, ******* ******* a ****-******* ******* ************* ******* *** aggressive *** *** ******* ***** *** market *** ********.
*** **** ******* **** **** ***** to **** ******* *** *********** ** burn **** *** ********* ** ******* and *******, ***** $** ******* **** fundraising, *** **** **** ** ******** standards ** **** * ******** ** what ***** ****** ****. ************* **** now ****** ***** ** '********* ******' for *********.
Competitive ******
** ****** ** *** ***** ********* increase *** ****** ******** *** *** Latch *** ******* ** ************ ******* head ** **** **** *** **** few *****.
*** **** *** *** **** ****** plays *** ******* ** ** **** but **** ********** ******** ******* ******** that ********* *** **** ******* ***** the *********** ** **** ***** **** closed ************ ******** ******** *********.
**** ** *'* *** *****, **** says ***** ******* ** **** ******** revenues ** **** *** ** **** years?
* ******* **** **** **** ******** than **** ***** *** *********, *** future ******* ******** **** *******, ******** controllers, ***********, *** ***** *** *****.
***, * ***'* ***** ***** *** any *********** ** *** ******* ** electronic ****** ******* *** **** ****'* why ** ***** *****. **** **** to *** ***** ** ****** ******** this ****, **** **** **** ******** the ********* ****, **** ******** **** they **** *****, ***., ** ***** below:
*****, *******, *** ****-** ***** **** a **** ** ****.
*** ** ******** ****** *******. *** pandemic ********* ****** *** *** **** are ************ ** **.
*** ****** ** * ************ *** keep *** ***** **** ****** **** more **** *********** *** ************.
* ***** **** ** **** ** cable, ** ******* *** *****.
*** *******?!?!?!?!
****'* ******!
**'* **** *** ** ** *** into *** ****** ******* ********.
**********: **'* ******** **+ ********, * billion ******* ** $** *******.
**'* * ****** *** ** * self-fulfilling ********. ** *** ***** *** what ****** **** ******, *** **** a **** **** **** ** ******** a ********* ****** ******** **** **** competitors.
*** **** ** **** ********* ** for *** **** ****** ** *** is **! **** * *** ****** about ****.
*** ***** ***** ** *** ***** going ******, ***** *** *** ********** are ********* ******* ***** (*** ** doubt **'* ******** *** ****).
*** ******** ** **** ******* ** they ***'* *** ***** ******* ** a ****** *******. ** ***** *** ugly ****. ** ** *****, **** have *** ********* ** *** *** money *** ******* **** ****, ** there's * *** ** ******* ** succeed, *** ***** ****** ***** ***** amazing *********** *** ***** ** ** scrutinized ** ********* *** **** ******* them ** **** ****.
*** ********* *** *** ****** ***** are ********** ** *** ***** ** live ** ** * ************ ****** economy. **** **** ******** *** ***** that ** ******** ***** ** * paltry *% **** ******* ** *****. And **** ** **** * ****** possibility **** ******** ********. *****'* ** way **** ***** ** **** ******** this **** **** **** **** ****** an ****** *.*** ********* ** ** years ***** ** ******** *** *******. What * ****. **** ** *** worst ** ***** **** ***** **** was ******** *** *.*** ** ****** and **** * ******** **** *** financially.
*****'* ** *** **** ***** ** this ******** **** **** **** **** will ****** ** ****** *.*** ********* in ** ***** ***** ** ******** and *******.
*** *** ******** ***** *** * would ***** *****'* ********* ***** ****** agree. ** **** *****'* ********, ******, the ***** ** *** ***** ****** the ***** **** ** ** *****. It ** ***** *** *** *** profitable ***** ***** ** ** ** years (** ********* *****,*** ******** ***** ** * *** model).
** ** ** *****, ***** ** a $* ** $* ******* ****** company, **** *********** ********* **** **** (keep ** **** ** **** ***** it ***** ** ** ****** * software ************ ********), *** ******* ***** be ***** $** ******* ** ****, purely ** ******* **** ********** (**% CAGR). * ***** ****'* **** **** are ****** ***.
****'** ****** **** ***** *********.
**** *** **** *** ******** *** brand *** ** *** ****** *****, the **** **** ******* **** *** bringing ** *** ***** ** *********** with **** ******* ********. **** ****'* doing ******** ***, *** ***** ******** is ******. *****-*****. ***'** ***** ** jump **** **** ** *** ********? And **** ******** **** ******* ** go ** ******* ******* ********...? *** outta ****.
*'* *** ***** ** ***** ******* OEM'ing *** *****...
** ** ******* **** ***** **** have ***** *** **** ** ***** software **** ********** ***** ****** **** people's *******. **** *** **** *** years * **** ******** ** ******* to ****** **** **** ***** ********** and * ***** *** *** ****** now.
***** ***** * ** **** ******** out * *** ******* **** * supplier ** ******** ***** *** *** see **** ****** ** ***. ** it *****'* **** ** ***/*******/*** ** then * ***'* ***** **.
****** **** ********* ****'* **** ** use *** ****'* **** ***** **** have ***** *** ****.
"****** **** ********* ****'* **** ** use *** ****'* **** ***** **** have ***** *** ****."
* ******* *****, *** ***** **** do **** * ***** *******; ***** are ***** ***** ********. * ***** this ***** **** *** ** ** a ***** *** ** *** ********, but *** ******** ****'** ********** **** coming ** *** ****** **** **** apple ******** **** **** ******* ****** access ******* **** ***** ******** ** a *** ******, **** ** ***** of **** ** *** ********.
****, * **** **** *** **** of * ******* **** ******* ********, I ********** **** **** ***** **'* a ****** ***** ** **** **** their ********* *** ****** *** ******* hardware ********* ********, *** **** ****'* inexperience ** *** ******** **** ****. Sure *** *** ****** **** *** installs; *** ***'** *** ***** ** have * *** ** ************* *********** trying ** ****** ** ****** ******* lock ******* ** **** **** *******. Thus, **** ******** ******-****'* ***** ******* even ****, *** **** ******* **** they've *********, * ****** *** ***** need ** ** **** *********.
*******, **** ******* ******* **** ** kind ** * **** ** *** industry ** *** ** *** ***** things *'** *********; **** **** *** going ** ***** **, **** ******** from **** ******** *** **** ***** it *** ** * ****** ***? Then ** ** ***** *** ** their **** ** **** ** *-* years. ***** ** ***** *** ******** owners *** *** **** *** ****** into **** ******* ** **** ***** the ****** ******** ** ****** *** communities. ***** *'** **** ** *** over ***** ******** ********, * ****, I ****... *** ** ***** **** some ***-**-**** ********* **** ****** **** the *** ******* **** ***** *** just *** ** **** ******** **********, like "****, **** *****. *** ***'* you **** * ****.."
**** ****** **** *** *** ******* half ***** *** **** *** ** your ******** **********, **** "****, **** buddy. *** ***'* *** **** * walk.."
*** ******** ********** ** *** ******* is *** ***** *** *** $*** million **** ***************.
** ******* ***** **** ** **** the ***** ****** ** * **************, it ***** **** *** *** ** a **** ***** ***** **** ****** cannot **.
*****’* ****** **** ******** ***’** ** but ***** *** *** **** ********* like **** **** ******, *** ******* come ** *** ****** *** ****.
***’* ** *****, ***** ** *****.
***** ** *********** *** ***** ** be **** **** *** *********** **** companies **** *****, **** ****** **** it, ***** * *** ** ***** load *** *** *** *** *** hire ***** ****** *** **** ********* oversee ***** ****, ** **** **** limited *********** ****** ***** *** *** off.
***’* ** *****, ***** ** *****. There ** *********** *** ***** ** be **** **** *** *********** **** companies **** *****,
***** ***** ******** *** *** **** hundreds ** *******!
***’* ** *****, ***** ** *****.
* ***** **** **** ********* *** I'm ***** *********; *** ***'** ******* at *** **** *** ** *** forest. ****** ** *** ****** ****** even ** **** ***** **** **** down. * ****** ** ***** ********* and *** ******** ******* **** ********* to *** ******, **** *********** *** if *** **** ** **** * product ** * ******** **** *** considered * ****** ** **** *******, they'll ********* *** ** *** ******.
*** ****** ** *** ******** ** as ********* ** *** ****** ** my ********. ** ***** ********* **** scale, *** ***** ****** * ***.
**** ****, ******** ***** *****'* ******** count **** ** *** ****** *** was ******* **** *** **** ** 2020:
** ***** **** *** ********* *** based ** ****** *******, ***** ***** make * *** **** *****. **** must **** ****** * ******* ******* that **** **** **** ** ***** to *** ***** ** *** * valuation ** **** ******.
******** ****** ******* ***'* ***** ********, it's **** ***** ****, ** **** a ****** ******* **** **** ** in *** *** ******** **** * 500K ** **** *******, **'* *** exactly ******* *** *** ****** ***** the ***** ** ***** ** *** water.
**** **** **** ****** * ******* account
******* ****** ** * **** **** estate ********** ******* **** **** ***** and ********* / *** ******** *** deal.
**** ****, **** ********* ** **** but ****** **** **** ******** ** other ****-** **** **********. ******* *** probably ** *** *** ***** **** year, ** **** * ***** ** comparison.
** ****'* ****, **** ** ***** eerily **** *** ********** **** ** 1999. * **** ** * ****** companies *** **** ****** **** ******* revenue ****** ******* ** * ****** of ***** ******** (*.*. *****, ****** Crossing) **** ********* ** ***** *******. Of ******, *** **** ********* ****** at ***** ******** *** ***** ******* in *** *********. **** **** * small ******** ** ******** *****.
** ********, ***** **** **** ****** part ** * ****** ********** (****), there **** ****** ** ****** ** opportunities ** ************ ******* ***** *******, as *** ******** **** ******** (** leases **** ******) **** *******.
** ********, ***** **** **** ****** part ** * ****** ********** (****), there **** ****** ** ****** ** opportunities ** ************ ******* ***** *******, as *** ******** **** ******** (** leases **** ******) **** *******
#*, *********** ** *'** **** **** before, ***** **** **** * ****** for ** ********** **** *** **** of * ****** ******* **** ******** an ****** ******* *** ***** ************.
**, ** **** **** ****. ** sell * $**** *********** ***, ** 30 ******. ** *** ******* **** our *******' ************ *** $****. *** manufacturer ***** * $**** ***** ** 80 ******. * ****** **** ** our ***** *** $**** *** ******* a $**** ****, **** ***** ****** of * ****** **** **** ** points.
****** ******* ** *****.
******* ** * *** ***** ****** Video *****, ****** ** *** **** significant.
****: **** ****** *********.
********** **** ******* *** **** ******** does *** ****** ****.
**** * ******** ***** ***** ** view, *'* ***** ******* **** *** Northern ******* ****** ***** ** ** switching **** *** **** ** ***** and ****** ** ********, ** * don't *** **** ********* (***) ****...
******* ** * *** ***** ****** Video *****
***** *** * ****** ********* *********** (and **********) *** ***** **** ****** Video:
(*) ** *** *********** ******* *********** products, *.*., ********* *** *** **** well (**** ** ***** ******) ** 2000s. ***** ** ***** **** **** mature **********.
(*) ***** ** ** ***-**-*** ****, OV *** * ********* ******* *** on. *** ******** ***** ** ***-**-*** SaaS ** **** ******** **** **** OV ***.
** ** *****, *********, * ***** Latch *** ***** *** * **** think ** ** ***, *** ****** positioned **** **.
***, ********** * ****** **** **** business ****, **** ****** ******* *** is *** * ********* ** ********.
**** * ******* ********** *** ***** argue **** **** ** *** ******* here **** ********* ********, *** * technological ************, ** ********* ** **** development ** *****. **'* ** ** a ******** ** *** ********** ****** was ****** ** ***** **$ *** its ***********, ** ***** ** ******** thay **** ***** ****** ** ******* such ******* ****...
***** ****** ** ****** ***, *** do *** **** ******* $*** ** expenses *** **** ** **** **** essentially ******* ** * ********* ***** room ****** ******* ******? *** ** your *********** ********** **** ******. ***** are ****** **** ********* **** * different ******** ******* ****** ** ******** the *****. *** ***** ****** ** this **** *** *****'* ******* *** easy ** **** ** ** ****** any ** *** ******** ******** ** place. **** *** ** ***** **** an ******** ** *** *** ****** it ** **********, *** **** **** on *********** ** *** ******* ** security (**** ******** *** *****). ** you **** ****, ******* ** ** seen ** **** ******* *** ***** critical **** *** ****** ********** ** 10 ***** **** ***.
****: *** **** ** *** *********** SaaS ****-** *****. *** **** ********* that **** ***** ** *** **’*/ early ****’* **** *********** ******* *** now ******* **** ** ** ***** over *** *****. *** ******** ***’* run ** *** ***** **** ******.
* ***** *** **** ************* ***** is *** *********** **** *** ** do **** *** ***** ********* *** integrators *** ********** ****** **** ** price, ********* **** **** ********* ******* and ******/***, *** **** *** **** to ******* **** ************* ******* ****** and ********* **** ********** *** ***** to *** ***** ** ***** ******* that **** ** ******* ** ******** or ******* ** * *** ***** but ***’* ******* *** ****** **** be **** *** *** ***** ** change **** ** *** ****. **** old **** *** *****.
******* *********** *******, ***** ****** ** selling ******** ** * **** ** lock ********* ** ****-****:
* ***** **** *** "****** **** Apple ********" *********. * *** ******* the ***** **** ** *** ******* demonstration ***** *** * ****'* *** any ******** **** *** ****** ******** to ***** *********. **'* **** ******* access ******* ******** **** **** *********** components *** ****'** ****** ** ******* from * ****** ********* ******** ******* to ********* * ******* **** ************** itself.
*** ***** **** **** ***** *** them ** ** *** **** ******* to ** ******** *** *** ********* to ******* *** *** **** **** an ********* **** ******** *** **** and ***** **** ************. *** * agree **** ***** ******** **** ******** whether *** ******* ********** ***** ******** for **** ** ***. ****'** **** to ******** ***** "***** ********" ** market **** ******* ******* * ***'* see ******** ******* ****.
******** - **** ** ** ********* piece. ** ***** ** ** ***** of "******* *********** *** ****", * think *** ***** ***! ***** ***.
*** **** * ***** **** ********* itself ***** ******** ***** ***** **** for * ***** **, ** **** are ******* ** **** **** ** money **** ** ***** **** ******* business **** **** *** ******* ** sell ** ***.
** ** **** *** ******/****** *** tech **** **'* *** **** *** Access ******* ******** ********? **** ***** with **** ******** *** * ****** other ********, *** ** **** ***** bite *** ** *** ****** ******* sector.
**** **** *** ******* ** **** it ***.
**** ********* **** *** **** **, i.e., *** ******* ****** / ****. They *** ****** *** ** **** can *** ***** *** *******, ***** money, **** ***, ***. ******* ****** to **** ** ****** ** ******, etc. * ** *** ****** **** at **** ***** **** ***'*, **** that ***** ****** ***** **** ******* to *** **** **** ****** ***'* exist ** *** **** ****** **** a ******* ** *******.
***** ********'* ****, ***** ********** ******** *********:
** *** ********** *** ******** *********. We ******* **** *** **** ***** our ******** ******** *** *****. *** plan ** ** ***** **** * focused ********, ********** ******* ******’* ******* of ********* *** ****** *** ****** the **.* ******* ********** ** *******, 9.9 ******* ********** ** ******, *** 4.2 ******* ********** ** *** *.*. in *** ***** *****.
*** **** **'* *****, ***...* ********* can *** **** ***** ********* ********** and ******** ***** ******* ** *** very **** ******. ***'* ** ******, most *****-****** ******** ***'* **** *** need *** * ****, **********-***** ***. They've ****** **** ** * **-***'* land ********* ******* ***** *** **********-***** ACS. **** ******** ********** *** ***** adding ** ***** ***** ** ********** and *** "********" ** ***-***** ********** which ** **** ******* *** **** to *** ****** **** **** ***** developers/property ******** *** ******* ** *******. The ***-****** ********** ** ** ******** with *** ****** ***, *** ******** who ***** ********** ****** **** **** it's * **** *** ** * market **** ****** * ********, ******-****** solution. ***** *** **-***** ******** **** has ************* **** ** ******** ** overcome, **** ** *** *******-********** ******** that *** (**** **) ********* ****** make **** ** ****** ****.
** *********** ******* ** *** **** industry ********** *** ******** ******* **** up '****** *******' *** ****** *******:
*****'* *** *** ***** ****** ****'* *******, *** ************* **** *********** ******.
*** *******, ******* ** ******** ** functionality ** **** **** ** ******* to **** **** ********* ** *********:
** *** ****, *****’* *** **** blue ***** **** ***** ** ** the ****** ** **** *** ***** and *** **** **** ** **** the ****** ** *** *** ***** and ****’* *** *** *** **** moves ****. ***’** **** ** **** new *****. *** *****’* ****** **** that **** ***, ***** *’* **** moving, *** ** *** ***** ***** me ***** *** ****? **’* **** this *** *****, *** *******, ****’* changing. *** ** ** *********** ***** the ***** *** **** ** *******. Why *** ** *** **** ** move ** **** ***** ***? * think ***** *** *** ***** ** use ***** **** **’** ******* ** and ******, ** ***** *** ****** be **** **, *****, ********* ** Space *** **** **** *********** ** with *** *** **** ********* ****’* really ******** ** ***.
**** *** *** *******, ****'* *** type ** ***** **** **** *** regular ********* ***** **** *** ***** from * ***** ******* ********* ** another, *** ***** ***** **** **************** **********, **'* ************** **** ** something **** *** ******** **.
*****'* *** **** **** **** ***** on *** ****** ***** ******* ****** projections:
** **** ***** ********* ** ****** our ******** *** *** ******** ** those ********* ** *** ****** ** to ** ****** ***, ***** ** actually *** **** ****. **’* **** in *** ***, *** ******, ***** projects *** ******** ***** ******* **** years ***. ** *** ***** *** is **** ** **** ** ** the ******** ******. **** *** *** our ****** ********* *** **** ****, you’re ******* ** **** *******, ***** is ******** **********. ** **** **** for * **** ***** ******* ** that, ***** ** **** ***** ** that **********. ** *** ***** ***** our ******** ***** **** *** **** the ********** ***** * ******* *********, they ****** **** ********. **** **** make *****? *** ******, ** **** really **** ********** ** ******* ** have ********** ** *** ********.
* ***** ******* **** **** **** confident ***** ***** **** $** ** $49 ******* **** **** **** ** this ****. **** ****'* **********, **** from $** ** $***, ***** ** much ******* ** ***** ** ********** and ****** *****. **** **** ** a **** ********* ** ******* ***** is ** *****.
**** ***** ** ***** *** ******* NDR:
** *** **** ** *******, ** deliver *** ******* **** ****. ** as ** ***** *** ******* ** existing *********, *** **** **** **** release *** *** *******, **’** **** a **** ****** **** ** ******** that ***** ******** *** *** *********. Is ** ****** ***** ** ** 154 *******? **** ** ******* *** future. *** **** * ***** *** is **** ** ****** ** ******** to **** **** ****** *** ****** retention *** **** ******** ********* ***** forward.
********, **** ****! *********** ****!
* ** *** ******* ***** * tech ******* ******* ** ************* ****** of ***** ** **** ****** **.
* ** ***** **** **** **** be ******** ****** ***** ***** *** public (*** ****) **** ** **** to ******* *** ****** ***** ********** multiple ***** *** ****. **** ***** *** **** *** *** ******* for ** *********** ************ ****, *** **** ***** ** ******* with ** ** ******.