Verkada Lead Investor’s Fundamental Errors

Please **** ** *****

****** ******** **** ******* did *** **** *** money ***** ***, ** he******** ** *** ********:

* **** ** **** one ***** *****: ******* was *** ** **** of ***** ***weren’t ******* *****. They had plenty of runway from their previous funding.

*** ***** **** *** or ******** ***** ******** ahead ** **** **** would **** **** ******* a *** *****.We ****’* **** ** **** and they didn’t want to go through a formal process. [emphasis added]

** ********* **** ** giving **** **** **** high *********. ******* *** not ******. ** **** can *** *** ***** sooner ** *** **** valuation **** ******** *****, take ** ***.

*** **** ** * thing ** ******* ****** 2020, *.*., *** *** Information's ****** ******:******* *******’* *** ******: Outsized ****** *** *********** Offers.

Marketing *** *** ** *******

** *** **** *********, Senkut ******** ****:

*** **** ****** ***** anything ** *********. *** this ** ********* ******* the *******-****** *** ** really, ****** *****.

** ***** ** *** thing ******* ** ************ the **** ** ** physical ********, ** ** spending ***** ** *********. Not **** ** **** give **** **** ** thousands ** **** ******** at * **** ** a ******* *******, *** they **** *** ************** on ****:

*** **** **** ***** millions ** ****** *********. For *******, *** ** their ********* ******** ********* spending * *******-******* ******* per ******* **** ** Google:

******, *********, ******* *** 50+************** ******* ** ********:

***, ** ******,****** **** $*** *** referrals*** ****** ****** *** Verkada:

*** ******** ** ********* plus ******* *** *** returning **** ***** *******:

******* ** ******* ***** they *** ******* **** are ******** ** ************* amount ** **** ***** and *********.

Hikvision *** *********

**** *** ***** ***** at * *******, *** want ** ******* **. Senkut *** **** **********, *********:

*** ***** ****** ************* is *** *** **** market **. ********* ** valued ** $*** *******-****. There’s * ******* ******* that’s **** $** *******. The *********** ** ** the ********* ****** *** all ********* ** *** world? ****** **** **** market ******’* ** ******.

********* ** ********* ****************** '********' *******. **** a ******** ** ********* does *********, **** **** of *********'* ******** ** aerospace, *** *** *** industry, *** ***** *******. People *** *** *************** what *** ****** **, they ****** ********** **** Honeywell ** * ************ that **** **** ******, most ** ***** **** nothing ** ** **** Verkada's **** ******* ****** 'building' ********.

*** *** ******* ******* he ** ********* ** is *********, ***** ** currently ****** ** ~$** billion ***. ********* *** this ******* ********* *** 3 *******:

• *** *** ********** ******* it
• *** *** ********** ****** or ******* ******* ***********
• *** ***** ****** ********** are ********* ********, ***** driven ** *** **********.

*********'* ********* ** ** fundamentally ********* **** ******* that ***** ** ** sense ** ******* **********.

***, *** ***** *** are ********* ***** ********* inflated *** ***** ****** valuations,**** *******, * ******* in ******, ***** ******* *******, founder *** **** ******* and ** ***** ****. They ***** **** * half-billion-dollar **** *********. ** the ****, **** ***** be ***** ** **** 1/10th **** *********.

Investor ******

********* ** *******, ******'* vision ** '*** *** buildings ** *** *****':

**** *** ** ******* is ****'* **** ** only ***** *********. **'* just *** ****'** ******* started. ****'** ***** ** start ****** ** **** and **** *** ***** to ****** *** ********* system *** *** *** buildings ** *** *****

Still *** ***

***** ** ** ****** that ******* **** "****** the ********* ****** *** all *** ********* ** the *****" ** **** half, ** * *******, or * ***** ** the *****. *** ******* and ***** ********* ** not **** ****.

********* *** ***** ****** notwithstanding, *******'* **** ******** still *** **** * good ******.

** ******* ***** ***, e.g., **** $* *******, it ***** ** ************* for (***-*****) ***** ************ / ******** ********. *******, Verkada ** ******** ** unprecedented ******-**, ****-********** *******. Virtually ***** ************ ****** control *** ***** ************ business ** ***** ********* on ****** ***** (**** a ***** ** *****, sell * ***** ** more ***** **** ****, etc.), ******* ** *********.

********* ** *******'* *********, to *** ******** ** Verkada's **** ********, ******** the **** *** ** that ***** ** ** get *** ***** *** marketing ****** ** *** as ******** ** **** as ********.

**********, *** ****** **** fully ********** *** ********* of ******* ****** **** this ***** ***, ** the ********, *** ********** of **** ***********, *** power ** *******'* ***** machine *** ***** ******* Valley's ***** *** ***** to ********, **** *** them * *** ** customers.

*** **** ********* **** can *** ***, *** more **** *** *** them ** *** ****** control ** **** ** whatever **** ******* **** next, *** **** ****** these ********* **** ** with ******* ** **** and ****** ** *** cost *** ********** ** moving *** ** ***-**-*** Verkada ****** **** ** practically ***********.

*******'* *** *** **** knows **** ******* **** **** ****:

******* ** ************* ******. 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. [emphasis added]

******, ******* **** *** need ** ******** ******** of ******* ** ** worth ******** ** *******. The *********** ********** **** flow **** *** ******-** Verkada ***** *** *** potential ** ** *** most ********** ***** / access ******* ****.

*** ** **** ***** helps ******* ** ***** up *** ******* ******, Verkada's **** ******** *** very **** **** **** times *** ***** ****.