Pivot3 Raises $23 million / Refocuses

Author: John Honovich, Published on Feb 07, 2012

Last year, we raised concerns that Pivot3 was pivoting away from the surveillance business. Now, Pivot3 has raised a major fundraising round of $23 million lead by Samsung. In this note, we examine how this impacts Pivot3's positioning and why Pivot3 says this show renewed committment and improved focus on the surveillance market.

Let's start with a review of key points:

  • **** $** ******* ****** ***** ****** **** ******* ** ~$*** million. *********** ***** *** $** ******* ****** * ***** ***.
  • ** **** ** *** *******, ****** ** ********* * *********** with ******* *******, * *********** ********* ****/******** ********.
  • ****** ** ********** ** *** **** *** ** *** ***** surveillance ****** ****** **** *** ******* ******** ** *** **** few *****.

** ***** ****** ***** ***** ***** *** *** ************ ******. They ******** **** ******** *********:

"*** **** ** **** $*** ******* *****, *** ************* ** Samsung, *** *** ********* ** **** ****** ** **, ******** Development ************ *** ***** ********** ** *** ********** ** *** surveillance ******. ** ****, ** ******** **** *** *** * bit *** **** ** **** ************ *** **. ***, **** the ********** ** ****** ***** ********* *******, **** *******, ** **** ******** ** *** ***** ***** **** **** us *** *** ******** ** ** **** ** *** ******. Here *** **** ********** ** *** ** **** **** *** hand ** ****.

** *** ******* "*****" ** *** ************ ******, ******** ** larger, *********** ************ ************* **** *** ******* ** *** **************, government, ****** *** **** ************ ******** *******. ***** ******* ******* benefit **** *** ***********, ********** *** ******* ******** ** *** Serverless ********* **********. *** *** ********** ** * *****-***** ******* team ** **** ****** *** ***** ******* *******-******** *******.   

** *** *** ********* ** *********** ****** ********* ******** * huge *********** ****** *** ***** ** ********* *** *********** **** to ******** **** ******* ************. **** *** **** ** *****, integrators *** ******* ***** ******** ** ****** ***** ***** ** customers ****** **** ***** ** **** ******* *** ********* *** the ********* ** ** *****. **'** ***** ***** ** *** UK, *****, ***********, *********, *****, ******, *** **** **** ** capitalize ** **** ****** ****** ******.

*** *********** **** ***** ***** ** **** **** **** *** company *** ** **** ******** ** ****** ** **** ******** engine ** **** *** ******** ******. **** ******** *** *********** team ***** * ****-********* *** ** ********* ***** ********** *********** into *** ************ ****** ******* ********* *** ***** ** *** appliances. ** **** **** ** **** **** ***** ****** ********** across *** ******** ** ** **** ****** **** *** ******* performance ******** ********* **** *********** ******** **** *** ****** ****** EMC." 

Our ********

****'* *** **** ********:

  • Funding ****: The large round gives Pivot3 resources to dedicate on surveillance which improves their capabilities relative to last year.
  • Focus ** *** **** ***: This is likely a necessary and positive action as it as very hard to differentiate on small to mid sized projects (16, 32, cameras, etc.), especially with the VMS vendors increasingly releasing their own boxes/appliances.
  • Competing ******* ********** *** ***** ********: Incumbent CCTV companies are not strong at providing large scale storage, typically OEMing general purpose storage offerings. There are few specialists targeting this market segment (e.g., Intransa, ***).
  • Samsung ************: We are not sure what value the Samsung relationship will bring specifically in security. Samsung is a traditional strong CCTV player but we do not see their core user base of small to mid size projects overlapping well with Pivot3's core strengths.
  • Long **** ******: While raising more money gives a greater runway, it also increases the expectations of future revenue/profitability that investors have. Now at $100 million+ in funding, it will be interesting to see how it can justify its valuation. Certainly, Pivot3's expansion last year to the general IT market is a needed step in accomplishing this. On the other hand, while focusing on the high end of the surveillance market is likely more efficient, it does narrow the overall market opportunity.

Product ***********

*** ******* *********** ** *** ******* **** ** *** **** year ** *** ************ ** ******** *****, ***** ** *********** *** **** ********** ** ************** ******. **** *** *********, ** ************ ** ******** ******* ******. However, *** ***** ***** **** ****** *** ******** ***** ***** CloudBank **** *** *** ************** *** **** *** ******* *****.

******

** ***** ****** ***** *** **** *** *** ***** ******:

"*** **** ********* ******** ****** *** **** ** *********** ****** our ************ ********* *** *** *********** ***** ** *** *** partners *** ******* ************ ** ******.  ** **** ***** ******* the ***** **** *** *** *** ******* **** ***** ******* Vmware *********.  

*** *** *********, *** *******, ** ***** ****** ********** ***** software **** *** *** ************, ** *** **** ****** *** been ****** **** ******** *****."

** ** **** *** ********** **** *** ********* **** ***** support ******. ****, ***** *************** ******* ******* / *** ****** can ** * **** **** (*** ************************ ****), ***** ****** ***** *****.

*****

** ***** ****** ***** *** **** *** *** ********** *****:

"** *** ****** ** ** *********** ** ******* *** ********* write **********. *** **** ********** ** *** ****** ** ******* per *** ******** ** *** *** * ***** ****. **** we **** ** **** **** ********** *** ************ ******* **** from ******* ************ ******* ***** ********, **** ** ******, **********, and ***, ** ******* **** **** * *********** ********. ** the **** ****, **** *** ************ *** **** ****** ** buffering **** ****** *** ****'* ** ********* ** *** ***** memory.  

** **** **** *** ******* *********** **** ***** ***** *** likely ** ******* *** **** ******* *** ******** ** **** most ******* **** ***, ** * ******, ** *** ******* scalable ***** ***** ** *** ** *** **********."

** ** *** **** ****** *** **** **** ********* **** specific *********** *********. *** *** **** ** ****** * *** manufacturer ********** ********** ***** *** **** *** ***** *** **** ********* *** ***** ********* *** version. *******, ***** ************ **** *** **** ******** ** ********.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

$28M Drone Detection Startup Examined (Dedrone) on Jul 25, 2017
Dedrone has received ~$28M in funding to build what they call an "automatic anti-drone solution", a system to detect drones, and then automatically...
Sports Stadium Security Design Recommendations on Jul 24, 2017
Sports stadiums pose many challenges for designing security systems. The facilities vary from being mostly vacant, to packed with tens of thousands...
Genetec Mission Control Tested on Jul 13, 2017
Genetec continues to move up market with their Mission Control, "Decision Support System", bringing PSIM-like procedures and incident management to...
OnSSI Gets $16 Million Funding on Jul 11, 2017
OnSSI has had a rollercoaster past few years. Between acquiring VMS company Seetec, breaking up with former OEM partner Milestone and a rocky...
Nest Cam IQ Tested on Jul 10, 2017
Nest has released their latest entry in their camera line, the Nest Cam IQ, touting 4K "Supersight", facial recognition, "HD audio", invisible IR,...
ONVIF Widely Used Toolkit gSOAP Vulnerability Discovered on Jul 10, 2017
A vulnerability has been discovered in a toolkit that video surveillance manufacturers widely use for implementing ONVIF. In this report, we...
H.265 / HEVC Codec Tutorial 2017 on Jun 30, 2017
For years, video surveillance professionals have talked about the potential for H.265. Now, in 2017, H.265 is starting to gain mainstream...
Resolver Raises $20M For Acquisitions on Jun 29, 2017
Resolver has closed a $20M funding round, and has several acquisition targets lined up already. Industry people might better now Resolver from PPM...
Hikvision H.265+ Tested on Jun 27, 2017
Hikvision, which in the past few years released H.264+ (see test results) has now released H.265+, that claims even greater bandwidth savings. We...
Milestone / Canon Launch Cloud Startup Arcus Global on Jun 27, 2017
Milestone has spun off a business, Arcus Global, funded by their parent company Canon. The new company aims to transform the VSaaS market with an...

Most Recent Industry Reports

$28M Drone Detection Startup Examined (Dedrone) on Jul 25, 2017
Dedrone has received ~$28M in funding to build what they call an "automatic anti-drone solution", a system to detect drones, and then automatically...
Dahua Suffers Second Major Vulnerability, Silent on Jul 25, 2017
Less than 3 months ago, Dahua received DHS ICS-CERT's worst score of 10.0 for their backdoor. Now, Dahua has received another 10.0 score for a new...
Hikvision H.265+ Bullet Tested (2035) on Jul 24, 2017
Continuing our tests of Hikvision's new low cost Value Plus line, we bought and tested the 3MP DS-2CD2035FWD-I, now including H.265+. We shot the...
Sports Stadium Security Design Recommendations on Jul 24, 2017
Sports stadiums pose many challenges for designing security systems. The facilities vary from being mostly vacant, to packed with tens of thousands...
Competing Against Convergint on Jul 24, 2017
No integrator is more aggressively expanding than Convergint Technologies. Owned and funded by private equity firm KRG, Convergint has acquired...
Security Robots Are Just Entertainment on Jul 21, 2017
Great entertainment, no real security value.  That is the happy (or sad) state of security robots in 2017. Knightscope robot's drowning, the...
Wireless Burglar Alarm Sensors Guide on Jul 21, 2017
Wireless sensors for burglar alarm sensors are an increasingly common option for the historical labor intensive wired alarm systems. However,...
Competing Against ADT on Jul 20, 2017
ADT is one of the biggest players in the security industry, with ~$4 billion revenue. In 2017, they were acquired / merged with Protection...
Hikvision Launching Deep Learning Recorders on Jul 20, 2017
Hikvision has become a common choice for super low cost NVRs. Now, Hikvision is aiming to move up market, with deep learning NVRs that claim far...
PR Campaign Exploiting Manufacturer Cybersecurity on Jul 20, 2017
Manufacturers increasingly have a bulls-eye on their back. As cyber security solutions providers grow, they realize a great way to get publicity...

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.

About | FAQ | Contact