Openpath Raises $36 Million

By Brian Rhodes, Published Jul 16, 2020, 10:53am EDT (Info+)

Openpath has raised $36 million as 2020 has become a boom year for access control investments, with $42 million to Proxy and $80 million to Verkada expanding into access control.

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Openpath **********

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IPVM Image

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IPVM Image

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Comments (9)

I guess my main concern as an investor would be barriers to entry (no pun intended). How easy would it be for one or more enterprising Chinese companies to copy this stuff?

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They are not selling parts, they are selling a solution, and that makes it much harder to just clone and sell for half off.

IMO, the hardware could be effectively copied pretty easy. Maybe not a 100% clone, but something that covered their fundamental differentiators (encryption, touchless access, etc.)

What is much harder to copy is the back-end software infrastructure that makes all the hardware work. Chinese companies have historically not done well at copying applications, though you do see signs of this emerging, eg: TikTok.

For the next half a decade at least, I do no think OpenPath has as much Chinese threat as a camera manufacturer, or a generic Weigand reader manufacturer.

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Awesome news for the crew over at OpenPath. I am seeing them more and more and plenty of customers and integration partners are working with them. The access control world is due for some innovation, so I'm excited to see what they continue to come up with!

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With Allegion buying Isonas recently and Allegion Investment putting money into OpenPath I would say they are highly interested in this company becoming part of the Allegion family. We are an Allegion partner for the Wireless locks and the card and reader business unit but are watching closely these transactions as they are slowly becoming a competitor by owning and operating full service access control brands. At first the claim was the Isonas purchase was for the IP reader technology and the rest would go away. That has not happened but they are making this reader available to channel partners like us. Time will tell.

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Thanks Rick.

That has not happened but they are making this reader available to channel partners like us.

Are you/Galaxy using the Isonas combo reader as part of a Galaxy system, i.e.: integrating Isonas firmware into Galaxy?

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Brain, We intent too once it is released to us. We are hearing that the Allegion team in IN that does the smarts for the Wireless locks are working on the API now. They always produce great code for us so we are looking forward to seeing what it will offer. We may restrict the sell through our channel to our cloud division only for this type of reader. With the RMR it makes sense for us to look at other "controllerless" options. In a standard on-prem system it is harder to justify the solution that does not involve our hardware. When you build your own like us the majority of our margins come through that line. That also allows us to offer a low cost of ownership in the out years by not needing to nickle and dime for software options and maintenance fees.

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Brian, allow me to throw some light into this . ISONAS Reader controllers are already integrated directly with Genetec & Open Options - Native Integrations no software from ISONAS just Reader Controller talking directly over TCP/IP to access control systems. here is a link to the datasheet of the reader controller where this is explained - . So no need to install any version of pure access manger ( cloud or on-premise) . if you are going with cloud or on-premise softwares then there some or we can even say limited integrations , some good ones are with milestone , datacard etc. apart from these WEB API is available links: - , Build, Collaborate & Integrate APIs | SwaggerHub

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Rick,

Will Galaxy be integrating the Isonas reader into the Galaxy software? Is Isonas coming at this sort of like Mercury, i.e. selling an "open API" IP reader to access control OEMs with the intent to integrate these readers into their systems without connibalizing their own native hardware offering?

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UI#1, See my response to Brian above. As far as the Isonas becoming Mercury like, I think they will find a fit as an edge device with the OEM partners of Allegion like Galaxy. Now when in comes to what they do with the company structure of Isonas that exist today, again I was told that it would fade away in similar fashion to the Shlage Bright Blue access that was purchased and sold while under the IR name before the Allegion creation.

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