Rare Video Surveillance Fundraising - Verkada $15 Million

By Sean Patton, Published Apr 19, 2018, 10:59am EDT (Info+)

Fundraising in video surveillance (and the broader physical security market) has been poor recently. Highlights are few and far in between including Knightscope raising $20 million from mom n' pop investors and Dahua's car manufacturer raising $63 million.

But now one US video surveillance startup, Verkada, has raised a (sizeable for this industry) $15 million Series A investment, led by Siemens' venture fund, Next47.

IPVM spoke with Verkada about:

  • Current State of the Company
  • Plans for The New Funding
  • Disrupting Traditional Security Markets
  • 3rd Party Camera Support
  • Competitive Challenges

Verkada ********

*** ********** **** *******: *******, ******* ****** VSaaS *******, ******* **********. ***** ******** ** ** ***-**-*** solution, **** ******* *** *********** ** ***** own ******* **** *****-** *******, **** no *** ***** ******* *** ** on-site *********.

Verkada ** ****

***** ******** *** ****** ******* **** **** have ****** *** *********. **** *** continuing ** ***** ** ********* ** enterprise ****** ******, ********* ******* **** potential ****** ** **** *** ******* on * ****** ****, ****** **** County ****** ******** ** ******* ************ as * *** *** **** ****.

Increasing *********** *** ***** *****

******* **** **** ********* **** **-** ********* and *** ******** ** ****** **** by *** *** ** **** **** increasing **** *********** *** *****. **********'* **** ********.

Verkada Looking *******

**** ***** ***** ******-**** *****, **** indicated ** ********** ***** ******* ********* to *** ********** ***** *********, ***** eventually ********* ***** ***** *** ******* that **** *** **** ********** ** over *** **** *-* *****.

No ***** *** *** ***** *******

******* **** ***** ******* ***** ** *********** a **** ***** ** ******* ******** and ********** ** ****** ********** ******* their *** *******. ***** *** ******* *** not **** *** *** ***** ******* at **** ***** ** *** ******, it ** *** **** ** ***** plans / ******** ***.

Incompatibility **** **** ********* ****

*** ******* ********* ** *** *** Verkada, *** ***** ***** **** ************, is ****** ** *** ******** **** the ******* ******** ****** ********* ******** cameras ** **** ***** ******* ** new ******* *********. *** ***** ************ market ** ***** ****** **** **** of ******** ** ******* ********* ****** essentially ***** ********** ********.

Lack ** ****** *******

*********** *** **** ** *** ***** support ** *** **** ** **** factors ******* ******** (**** * ****** - **** **** indoor *** ******* *****). *** ***** *** **** ********* focal ******* ** *****-******* ** **** or **** ********* ******, ***** *** no *******. ****, **** ********** ****** is ***.

Verkada *********** *********

******* **** ***** *********** ********* **** in ***** ** ***-**-*** ********, **** no **** ** ****** ** **** recorders ** ******* *****, ***., **** up ** *** **** ******* ****** the ****** ** **** ** ******** software, ****** *** "******* **" **** software **** ******* **** ** ******* ** video ************. 

Competing ******* **********

***** ***** *************** **** *** **** installed **** ** ******* *** ***** lack ** ****** *******, ** ***** expect **** ** **** ******** ******* with *** ******** ** **. ****** there *** **** *** ***** **** cloud ********** *** **** ** ****** by *** ***** ***** ***********. *******, ******* tells ** ***** ******** ** **********.

Competing ******* ******

*******'* ***** ************ ******** ** ***** similar ************* ** ******'*, ****** ******, owned ** *****, *** ******* ******** and ******* ********** *** ******** ****. Verkada *** ********* ** ******* *** advantages **** *** ****** ******, ********** individuals ********** ******* **** *** * demo.

Competing ******* ***** ***

*** ***** *** *****, ***** **** cloud *****, ** ************* *** ******** to Verkada. ***** *** ** ***** ** work **** *** ***** ******* ***** requiring * *** ** ****. ***** Eye ******** **** * **** ****** product *** ****** ******* *********** *** Brivo. *******, ******* *** ** *********** to *** ** ***** ** **** their *** *******. 

Benefits ** $** *******

** *** ******** ****, **** **** $15 *******, ***** ***** **** * few ***** **** ********* ** ******* at ***** **** ** *** ******** they **** *****. ** * *******, surely **** **** ******* *** ******. How ****, ** ******, ** * key *************.

Benefits ** **** ** *** ********

******* ******* *** ******* ** **** there *** *** *** ******** ** the ********, **** **** ********** ******** R&D ******** ** ********** ** ****** in ***** ************. ** ********, **** integrators **** ** ************* ********** ** offering **** ****-***** ********* **** * contrasting ***** *********** ** **********. ** that ***, **** ***** ***, *******, even **** *** ***********, ***** ** attractive ** ******* / ***********.

Good *** *** ********

*******, **** ******* ** **** *** the ********. ******* ** *** ******* can ****** ** * ********** ********** in *** ******, **** **** ** funding ********* ******* *** ****** *** the *********** ** * *** ********** of ******* ** *** ********.

Response ** ***/*** *********

******* ********* ** ********* ********* ************* of ***** *******:

******* **** ******* ******* ***** ****** ************* (JDM) ******** ** ****** ** * force ********** *** ***********, *************, *** global ********* *******. ** ** *** "OEM" *** *** ***** *******, *** we ******* *** ****** *** ************* of *** ** *** ********. **** method ** ******** *********** ******* ***** time ** ****** ***** ***** ********* our ********* **** * ****** *** secure *******. *** ** *** ******** (including *** **********, ********, ***** & client *****) ** ******* ** *** core **** ** *** **.

Comments (10)

Undisclosed Manufacturer #1

04/19/18 05:41pm

Even Avigilon and Mobotix went H.264 and ONVIF eventually.

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John Honovich

IPVM | In reply to Undisclosed Manufacturer #1 | 04/19/18 08:24pm

Avigilon is an interesting example because if you are a Verkada optimist, you might use them as a case in your favor. Originally, Avigilon did not support 3rd party IP cameras and built an end to end solution, selling for a billion dollars this year.

The problem with such an analogy is (1) a decade ago, there were very few deployed IP cameras (making greenfield IP much more common) and (2) the advantage of moving from SD to HD was likely far more compelling than moving from on-site to cloud managed.

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Undisclosed #2

04/19/18 06:05pm

It would seem that they are an OEM of Vivotek.

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Undisclosed #4

In reply to Undisclosed #2 | 04/19/18 07:50pm

Keep in mind that Vivotek also does custom ODM manufacturing. I have not evaluated the internals of the Verkada camera, but it is very possible that the Verkada camera is very different from any of Vivotek's standard offerings.  To be fair, it is also possible that the Verkada camera is an off the shelf Vivotek unit with some custom firmware. It is impossible to tell one way or the other simply from the results of an import listing.

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Sean Patton

IPVM | In reply to Undisclosed #4 | 04/19/18 08:06pm

I reached out to Verkada for comment, and will update as I get it.

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Sean Patton

IPVM | In reply to Undisclosed #2 | 04/20/18 12:55am

I updated the post with a response from Verkada regarding OEMing cameras, which was:

Verkada uses several trusted Joint Design Manufacturing (JDM) partners in Taiwan as a force multiplier for engineering, manufacturing, and global logistics support. We do not "OEM" off the shelf cameras, and we control the design and manufacturing of all of our products. This method of hardware development enables rapid time to market while still providing our customers with a custom and secure product. All of our software (including the bootloader, firmware, cloud & client stack) is written by our core team in the US.

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Undisclosed Manufacturer #3

04/19/18 07:00pm

Verkada's says their primary focus is maintaining a high level of network security

So no Hikvision or Dahua OEMing?

Verkada says their competitive advantage lies in being an end-to-end solution

... like others....

unlike the "Windows 95" type software that Verkada says is typical in video surveillance

Ha, we use Windows 98 Special Edition!

I'm not enthused so far. But don't get me wrong, I wish them luck.

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Undisclosed Manufacturer #5

04/20/18 05:58am

Isn't this pretty much exactly what the Cisco Meraki video surveillance play is, it's certainly the same pitch I've heard from them at trade shows in UK/ Middle East?

(Not to say there can't be two businesses doing the same thing in a growth market).

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Sean Patton

IPVM | In reply to Undisclosed Manufacturer #5 | 04/20/18 12:50pm

It certainly seems to be a very similar approach to market, which is not too surprising considering one of the co-founders Hans Robertson also co-founded... Meraki.

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Matt Connolly

04/20/18 11:09pm

Disclosure: I am the President of VIAAS, Inc.

VIAAS has been offering an end-to-end Cloud VSaaS solution since 2008 and has thousands of commercial customers.  VIAAS offers 3 cameras, manufactured to our specifications, with our proprietary firmware, by Hikvison.  No DVR/NVR, servers or software have been required since we launched the product.  VIAAS offers on board storage and up to 120 days Cloud storage among 5 service plans. 

VIAAS focuses exclusively on business customers, and large, multi-site customers in particular.  Many VIAAS customers have more than 200 cameras in their accounts, distributed among many locations. 

We appreciate the growing number of articles about VSaaS as it is becoming a serious option for many customers.  It's safe to say, VIAAS was offering VSaaS when VSaaS wasn't cool!  Welcome to the party Meraki and Verkada. 

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