Verkada Raises $80 Million, Triples Valuation To $1.6 Billion

By John Honovich, Published on Jan 30, 2020

Verkada's rocketing valuation continues. 9 months ago, they got a half-billion valuation and now they have announced more than triple that, at $1.6 billion, raising $80 million more.

The most amazing thing? Verkada's next big thing is physical access control. Not a joke.

While access control is generally looked at as slow and boring even within physical security, access control was the lead headline in Verkada's announcement.

Inside this note, we examine where Verkada is at, how this helps them, what risks they face going into access control and how this impacts the market.

Add *** ********* ** ****

*** **** ********* ******* impact ** **** ******* says **** **** ** grow ********* **** *** to *** ** ****.

**** * ***** ***, Verkada *** **** ** employees, *** ********, ******* 10x+ ** ~***:

****** ******* *** ***** be ** ********** ***** for ***** ************. ** took ********, *** ******** generation *****-**** *******, **** than * ****** ** get **** **** ********* whereas ******* ** ****** to ******* **** ** half **** ****. *** with $** *******, **** have *** *** ***** to ** ****.

******* ******* *** *** - *** ***********, ****** than ********* ***** ***** surveillance ************ ** ***** America **** **** *** Avigilon. **** *** ******* increase ** *** ********* total, ******* *** *** close ** **** *** Avigilon ***** ******** ******, despite ***** ********* ***** in *** $*** ******* range ****** ***** *******.

** *** ******* ******* was ****** **** * lot ** **** ******** and ****** * *** of **** ***** ** 2019, **** *** **** that ****.

Tripled ******* ****

******* ****** ******** ***** revenue (**** **** ****) but, *******, **** ** significantly **** **** **** we ***** **** ******** given ***** ********** ******** in *********** *** ********* spend ** ****.

**** *** ***** ***** full **** ******* ** the ***** ***** **** been **** **** ***** how ***** *** ******* starts **** **** *** massive ******** **** ** throughout ****.

**** ******** ******* ****** heady ********** ** *** revenue, **** ***** ***** Verkada *** $*** ******* in **** *******, ***** certainly **** *** *** do (***** ** ***** imply **** *** $** million ** ****, ***** they ***** *** ****). Given **** *** **** tripled ******* ** ****, we ***** ****** ***** 2019 ******* *** ** the $** ** $** million *****, ***** ***** put ***** ********* ** an ********** *** ******* multiple.

**********, **** *** *** $80 ******* *** **** is * **** *********** amount **** ** ******* now ***** ** **** on *** ** *** physical ******** ******.

Access ******* ********

***************** ** ******** ****** control, *********:

*************'* ***** ***** ******** Verkada's********* ** *** ** building ******** **:

*** ******* **** **** is **** ******* ** now ** ****** '****' a ***** ************ *******, they *** ****** **** that, **** *** ** the $** ****** ******* market, ******, **** **** be "***** ********'* ******** OS." * ******* **** can, ** **** *** a **** ** ****, is ***** *** ****, which **** ***** ********* are *** ******* **** at **** **** ** more.

Plus ** ****** ******* *********

******* ********* ** ****** control ******* ******* ** *** ** real ******* ****** *** obvious **** ** **** be ***** *** ********* with ***** *****:

*** ***** **** ********** of ******** ****** ******* are:

  • *** * *** ** startup *********** - ***** are ********* ***+ ***** surveillance ******** ** *** past *** *****, ***** is **** * ******* in ******** ****** *******.
  • ***-***** / **** ********* - ******* ****** ******* is * ******** ******** operation, ************* ****** ******, so ** ********* *********. Indeed, * ******** **** buys *******'* ***** *** access ******* **** ****** never *****, ** **** because *** **** ** replacing *** *** *** useless ********* ***** ** prohibitive.
  • ******* *** * ***** machine - ** *** have ***, ***, *** guys *** ******* *** day ****, **** **** more ** ****. ****** has * ******* **** that, ** **** ********* of **.

Negatives ** ****** ******* *********

*** ***** **** ********* of ******* ******** ****** control ***:

  • ****** ******* ******** **** of *********** *** **** of ***** **-****. ******* can ***** *** *** on *** ***** **** but **** **** *** ditch ******* *** **** and **** *** ******** switches *** ******** *** all *** ********** ****** with ***** ****** *******. This ******** *********** ********** on *** ******* ***********, support *** ***** ***** of *******.
  • ****** *** *** ****** control *** ***** ** be *** **** ***** about **** ****** *** technical *******. ** ****, Verkada *** *** ****** with ** ******** *** find ***** ************ ** a ******** **** ***** they **** ** ******** setup *** ******* ***** while ***** **** ** sacrifice ***********. **** ****** control, **** ****** ** wrong, ** ***** ******* very ****** ******** *** employees. ** **** ** interesting ** *** ** Verkada ** ***** *** that.
  • *******'* ***** **** **** hate ******* ****** *******. ** **** ****** with ******* * ***** Verkada ***** **** *******. They *** **** **** energy, ********* *** ***** to ***** **********, ******* or *** **** ********** them. **** ** *** going ** **** ** well ** ****** *******, where ***** *** ****** are *******. *** *** knows. ***** ******* *********** will ******** ** ******** that*** *** *** ******* *** *********.

Outlook - **** **** ******, ***** *******

******* ****** ** **** to **** **** ****** control *** ** **** be * ******** ** their ***** ******** *** come **** *** **** pain **** *** *****. Their ***** ******* ** poorly *** ** ** sell * ******* **-**** sale, ** **** ****** maximize **** *********. ****** that, ****** ******* ** a ***** *** *********** any ******* **** ***** it.

Video ***** ***** *** **** *************

**** ** ****** ******* winds ** ***** *****, Verkada ***** *** * chance ** ******* *** valuation. **** ******* **** found * ***** ***** system ** ******* *** market ***** ****** ** IT ********. *** *** they *** **** ** really *** ********?

******* *** ***** ** be **** **** ** a ***-******** *****. *********-** ********** **** ********* **** margins **** ******* ****** licenses. ** *** **** term, **** **** ******** significant, ***********, **** **** that ********* **** ****** value.

*** *** **** *** grow ** ****** *** question?

*** **** *** ***** are ***** ** '**** get ****** **' ** Verkada? **** **** ********** be *** ********.

*** ***, ******, ** all *** ** *** what $** ******* ** funding, ******* *** ******** security *********, **** **** the **** ****.

Vote / ****

Comments (28)

****** ***** *** ********* in *** **** ** dial **, *** ********* and **** **********. *** advent ** **** ***** internet ******* ****.

****** ******* ** ****** the ******* ** ******** style ******** ******* *******. I *** *** **** primarily ******* ******* ********* locking ******** **** * wireless ********* *** *********** network ******** ******* *** existing *******.

** ****** *** ******* electric *** ** ********** cars, * ***** *** biggest ****** ** ***** success ********* ****** ******* is ***** ** ** the ****** ********** ** the **** "********"... *** industry *** **** *** share ** ******** *** world-record ******** **** *******, so ********* ****'** ******* their *** ******** *** using **** ******* **** encryption **********. **'** ********* be *********** ** *** how "***** *****" ****** Control ***** ***.

** ******** *** ******* based ** ******* ********** is **** ******** ***** based ** ********** ********** and *** ****** ******* I'm *** **** **** the ***** ******** ** reassuring.

********? *********? ***** **. I **** ****** ** say "**** ** **********" - ***** ** **** of ******* ****** ** prove *** *****.

* ***** ******* **** play * *** **** in *** ********** ******* access **.

** ******* ******* ** price ****** *** *** trade **** ** **** $80M ** ********* *** pricing ** ****** ** security **** **** (*.*.:********* & ******* **** funding) **** *** ****** demand *** ***** ******.

** *** ***** ****, even *** *********************** ********* *** **** * big ******* ** *** US, *** (**** **** potential ******* **********) *** company's ******** ** *** that **** ************** ** less ********* **** ********* brands.

**************. ****’* * *** indicator. ** **** ** “disruptive”.

*** *** ****** **** tried ***** “*******” *** garnered * ***** ******* of *** ******** ******* by *** *** ****.

**** *** ****** *****, but ******* *** ***** team *** ********* ******.

********** ** ********** ** the *********** *********** *** model.

******* ***** ** *** right *******, ** *** right **** ** ********** with * **** *** some ******* *****.

** * * ***, not ** **** ***, but **** ***** *** the ********** ****/** **** want.

*** **** ***** *** the ********** ****/** **** want.

**** ** *** ***** Verkada ***** ***?

* ***** **** ***** fix *** “**’* * brick ** *** ****’* paying *** *******” ** doing * ******** **** maybe **** ***********.

****** *** ***** ***** storage ******, ***** ***’* significant ********* ** *** users ** *******.

****** ******** ******** *** all ******. **** **** view, ******* ***** *** storage **** **** *******. Maybe * * ****** per **** ******* ****** download ***.

** *** ***, *** controllers *** ***** *********** event ******* *** ******** off-line ****** *** ****** events ** ******** **** Mercury. ***** **** *** be **** ** *** paying *** ***** ***.

* *** * ******* someone ****** ** ** bid ***** **** ******? Apparently *** *** ***** is ****** ** **** cloud / ******** ****** control ******** ** *********** and *******, *** **** this ** ********* ************* and **** ** ******* thinking ** *******, ***********, etc.

**'* ********** **** *******. The **** ***** ***** integrator *** ******** ** is ****** * ***** of ***** ** ** applesque ******* **** *** some ********* ****** *** go ** **** ** a **** ********. **** a ****** **** *** go **** * ** fund ** *** *** 10x **** ******* ******* you're ************* ******* ********* churn *** ****.

******

*********** **** * **** specific ******** ** ******* properties *** **** ** sale; *** * ******* access ******* ******.***** **-****** ******** ********** **** *****:

* ***** **** ** a ******** **** **** will **** ******. **** they ********** *** **** we ********* **** **** related ** **** ********, permitting, **** ********** *** testing, **** **** ******* they've ******* *** **** the ***** *** ** the ****.

* **** ***** **** access ******* ** *** 'high *****' *** *** current ***** ***** **** have ** *****.

**** ** .**

****

* ***** **** ** a ******** **** **** will **** ******

****.

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

(*) ******* *** ******* something *** ** *** else *** ** ****** control. ***, **** ***** perspective, **** *** *** "These ********* **** ***** about ** **** ****, they *** ***** ***** us *****."

(*) ******* ****** ************** how ********* ****** ******* will **, *** ********* or **** ** ********** and ***** * *** hit.

(*) ******* **** *** actually **** ***** ****** control **** **** *** just ****** ** **** something ** *** **** people ******* **** *** the *** ***** *** don't ********** *** ****** issues ** ****** *******.

* *** **'* * toss ** ******* #* & #*

* ********.

*** *******, *** ******** interfacing ** *** ***** to ****** ****. *** system **** *** * reader *** * **** needs ** **** **** the ****** - **** Verkadas *** ******. *'** agree ** ****.

*** **** ** ***** to ******* **** *** software, * *** *** impression **** **** ** the ****** ******* ******* are ***** ***** ** the **'* *** * think ******* (**********) **** an *********** ****.

**** * (***) ******** is ***** **** *** choice ** * ****** and ******** ********* *** a *****, ******, **** looking ** **** "**** works" *** *** * tight *** ******** *********** with *** *****, ** bet ** **** **** users **** **** *** new *** ** *** block.

***** *** ***** * myriad ** **** **** Verkada *** ***** **** up - *** * don't ***** ** **** be *** ** ****** control ***** *** ********* to ******.

******;

** *** **** * good **** ** *** current ******, ***** *** plenty ** ******* *** updated ********, **** **-******* and *****-*****, **** *** look *** **** *** tight *********** **** ***** that ***'** ******* *****.

****'** *** *****. ****, there's **** ** ******* now *** *******-******* ******** that ********* **** ** the ******. ***** **** risen ** *** ***** of ********* '***********' ****** control ** * *** of **********.

***'* *** ** *****; your ***** ** ******** that ***** ***** ** the **'* ** ******* for **** ************. *** I ******* ***** **** there *** **** ************* for ******* ** ***** this **!

** ***** ** **** : ******** ******** ********* are ********* ** *** incumbents *** ********* ** Verkada *** (*****, *******, wired, ******* ******* ***.). I ***'* *** *** anyone ** ***** ** offer ******** ** **** the ****** ********** ** either *********.

** ***** ** *** UX, *'** *** ****: My *** ****** *'* a ******** ***** ***. The ******* ** **** I ** ******-****, *******, eat *** **** *** dress ******.

********** ** ****** ** their *****. ** *** installation, ********** ***** **** it. **** ** *** hardware *** *** *** IT *** ** *** rest.

** ***** **** *****/******* with ** ***** ** the ********* ********** *** our ******** ** ******* NFC *** **’* * part ** *** ****.

**** * **** ********* NFC **** **** * screwdriver ** ******* *** enroll **** * *** with * ******* **** last *******. **** **** the ****** **** ****.

*** ** ***** ** create/sell * ******* *** transfer ***** *****? ** there ******* ***?

******* ******* *** ********** strike/mag ****? **** ****** reporting?

**’* ****** ******

*** ****** **** **** around *** * *****.

******** ***********® ***** **** Ethernet ***** (*** ******) - **** *****

**** ***'* ***** * camera ** *** **** itself.

******, * ** ***** with *** **** **** of ****** ******* ******** is ***** *** ******* has ** *********** ** improve ** **** ********* against ****** *******, *** there *** ***** **** of ********** ******** **** remain ** ****** ******* that **** ****** *****.

*** *******, *** **** advantage **** ******* *** found *** *** ***** is *** **** ** setup, *.*., ** **** advertise, **** **** **** PoE *** *** *** done. **** ** * critical ********* *** ***** sales ****, ** ** reduces ******** *** **** them **** *** **** trial *******, ***.

**** *** **** ***** to ** ** ****** control? **** *** **** out **** ***** *********** but **** ***'* **** plug **** **** ***, they **** **** ******* on-site ** ** *** wiring ** *** *******, locking *******, ***. **** means * ****** ***** cycle *** **** ********* support.

* ** ***** ******* can **** **** * channel ****, **** **** video, **** ****** ** access ******* *** *** logistical ******* ***** **** a **** ******, ******* sales *******, *****/********?

*** ***** *** ***** lots ** ********** ******** that ****** ** ****** control **** **** ****** solve.

*****, *** *** **** applies ** *** **********, and * ***'* ***** you **** ** ***** every ****** ******* ** be **********. ** *** can ***** ********* **** you ******* - ** totality - ** ****** than *** ***********, **** you ****** ****** ****** the *******. *********, ***** are ****** ** ***** factors ** ******** - e.g. ******* ****** ** drop ********* ** ****. Not ******* ********* ** objectively ******, *** ******* they've **** ******. * suppose **'* *** **** reason ******** *********** **** in ****** *** *** too ****. **'* ********* hard *** ****** ** admit **** **** *****, so ****'** **** *** praise ** ***** ****** - ********** ** *** evidence, *** **** *** evidence ******* *** ************, they'll **** **** *** goalpost *** **** ******** for *** **** *** dog.

**** ** * ******** component *** ***** ***** team, ** ** ******* friction *** **** **** ship *** **** ***** cameras, ***. **** *** they ***** ** ** on ****** *******?

* ***** **** **** can't ** *** **** shtick **** ****** *******. And * ******* ***** that *** ******* *** the ****** *****. **** people *** ****** **** Verkada ** *** ****** side (*** ******** **** are ***** **** **** situation), **** **'* ******** quite ****** *** ******* to **-**** ** ****** control ************ **** *** time *****. *** ****-******** I ******* **** ***** send *** * ***** reader *** * *** cards. **** ** **** how ** *****. *** cost ** ** *** reader ** ****** ***, I ***** ********** ** a ******.

**** ****, * ***'* help *** ****** ** they've **** **** ******** on *** ****** ****, because ***** *** (*****) no ****** ******* *********** to ***** ***. **** a ****** ****** * guess **'* **** ******** that * *** ***** was ***** ** ** an ***********, ** ******* they ****** **** ** add ** ** ****** their *****.

** *** *** ***** something **** *** ******* - ** ******** - is ****** **** *** competition, **** *** ****** should ****** *** *******.

******. * ** *** saying ******* ****** *** offer ****** ******* ** all. ** ***** ** that **** ** ****** to **** *** **** as * ******* **** (established ******* **** **** dollars *** *******) **** it **** ** **** form ** ************** ** disruption ** ****** ******* generally.

**** ****** *** ****** into ******* ** *** camera **** (*** ******** they *** ***** **** that *********), **** **'* probably ***** ****** *** Verkada ** **-**** ** access ******* ************ **** the **** *****.

****, * *****. * do ***** **** ***** Verkada's ****** ******** *** an ****** *** ** maybe **% ** ***** video ********, **** ************* but *** ********* ************ strong ** **** **** on * ******* ************ where ***'* ********* *******.

**** ****, * ***** I'm ***** ** **** to ** ** **** game ***....****** **** * contact ** ****??

****** **** ****** *** a **** ****** *** listening ** * *******?

** *** ***********, **** is ***** ***********. * don't ***** ***** ****'* been **** **** ******* capital *** **** * traditional ******** ******* ****? Ring *** **** **** raised * *** **** but **** **** ******* a **** ***** *******.

*** **** ****** ******* is ********? * ***** this $*** ** **-** months ** ****** ** implement ***** ******/*******. ******* uses *** ** ***** cloud ********, ** **** we *** '****** ********* $1.5b *********** ** *******' in ****?

***** **** $*** ** 12-18 ****** ** ****** to ********* ***** ******/*******.

** **** :) ********* on *** **** ***** it. *** *******, ** they *** ** *** employees ** *** ** the ****, **** ** easily * $*** ******* burn **** ** *********.

**** ***** **** *** in *** **** ****** but **** ***** **** try ** ***** *****. If ** ****, **** raised $*** ******* * would *** ** *********. Not ****** ** ** worth ** ** ***, just **** ** ****** pattern ** *** ****** side.

*** ***** ** ***** about * ****** *.

** *********** ****, ** looks **** ***** **-******* Hans ********* ******* * significant ******* ** *** $15m, ****** *, *******. I ****** *** **** affected ****** *** ********.

*'* *** **** ** they'll ** ****, *** I **** **** ******* Everett ******* **** **** years *** - "* billion ****, * ******* there, ****** **** ** adds **!"

******* *** ********* * long ********* ***** *** fund *********** **-******* *** ******* CEO***** ********, ***** *******.

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

** **** ***** ** engineers, **** ** ** whom *** ******** *********. All ** *** *************** is ** *** ******** side.

******* *** ** *** number ** *********** **** engineers, ***** ** ********** out ** *** ******** for * **** ************. We ***** * *** of **** ******* ***** Verkada's ***** ******** *** sales *******, **** ****** underscores ***.

****, ** ********* ** take ** ***, *******, analytics, ****** *******, ***., is **** *****-*******. **** are ********* ***** ** expand *********** *** **** will **** **.

**** *******, **** ********** a *** ***** *** vision *** *******, *** broader **** **********:

*** ******* ** ** be *** ********* ******** security ******** ***** *** every ********, *** *** foundation ** * ****** enterprise *** **************.

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

** ******* **** *** seamless *********** ** ***** different ******* –access *******, cameras, eventually other ******* ** ********* – in a ******, ****** ******************** ** *** ******** differentiator *** ******* ** the **** ***.

*** ****** ***** ** the *********** ** ****** into **** ***** *****. For *******, ******* ***** be ********** ********* *** customers **cleaning *** ***, warming *** ********, locking the door, or sounding ** ***** **** *****’* ***** in the building. [emphasis added]

* ***** ****** ******** management ******... *** *** main ****** *** (*) for *********** **** **** a ******* ********, ***** will *** ** ******** close ** **** ******* oneself **** *******. *** (2) *** **** **** lock-in ** ***** ** be ********** *** *** subsequent ******* *** ******* will ** ******. ** he ************ ** *** interview:

******* ** ************* ******. That’s *** ****** ** the ****** ** *** system. **** ******** **************, there’s *significant ******* ********** from the customer: she has invested both in the hardware and the labor to physically install a system throughout her buildings.

***, ******* ***** **** up **** *% ** the ******* ** *** market *** **% ** the *******...

**** *** **** **** success **** ****** **** existing ******* *** * do *** *** **** being * ****** ** new *************. ** ***** they ***** **** * physical ****** ** *** state **** ** ********. Most *** ************* ******* permits ***** ***** ****** to ****** ***** *** often **** *** ****** with *** **** ********. We *** ****** **** and **** ************** **** require **** ** ***** to ***** ***** *** fees **** **** *** of *** ********** ***** are **** ****** *******. There ** **** *** matter ** *******. **** people *** *** ** with * ****** ***** out. **** *** ****** will ***** ***** ******** to ** ******** *********. There ** *** * cookie ****** ******** ** access *******. * **** been ***** ** *** over ** ***** *** still *** **** ****** situations ** * ****** basis. ****, ***** **** always ** * ******** component ******* ** ****** control **** **** ******* an ********* ************** ** support.

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