By John Honovich, Published Feb 05, 2020, 08:52am EST
The man behind Verkada’s stunning $1.6 billion valuation, Aydin Senkut, has been talking up many fundamental errors he made in the investment.
From fundamentally misunderstanding Honeywell and Hikvision to even Verkada itself, he has made one daring bet.
But that does not mean he will wind up losing money on this risky deal. Inside this note, we examine his errors and, despite that, why his money may help himself and Verkada.
* **** ** **** 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 ** ***.
**** *** ** ******* 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 ***********.
******* ** ************* ******. 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 *** ***** ****.
*** ******** **** *** all ****** **** ******* on *** **** ***** product, *** **** **** are ***** ** ****'* going ** ** *** market.
****: **** ** ******** from ** ******** **********. At *****, * ******** if **** *** ** Avigilon ******** ******* ********** on *** **** *** no.
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Informative: 2
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Comments (34)
Undisclosed Manufacturer #1
*** ******* *** ** Mr. ******'* ***** ******* please? * **** **** swampland ** ******* **** he ***** **** ** invest **. ** ***** not ** ***** **** now, *** **** ** drain ** *** *** up * ******** **** it **** ** ***** millions. ******* ** *** is *** ***** *****, and ** ***** **** this **** ** ********** might ** ** *** alley.
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Undisclosed Manufacturer #2
* ***’* **** ** again, *** **** ******* I *** ******** **** someone ******** ********** **** low *** ************* *** installed * *** ****** Verkada ****.
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Ross Vander Klok
***. ** ** ***** to ** *** *********** people *** ******** ***** on ****** **** ***'* come ***** ** *************. I ***** **** ** fundamentally *** ******** ** venture *********** ****** *****?
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Undisclosed Distributor #3
*** **** ******* ****** have **** * ***** booth ** *** *****.. you *** ****** **** it...lol
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Remiel Feng
02/06/20 06:48pm
* ****** *** ***** lead ********** ** *****, throwing **** ** ***** into ********* *** ** very ********* **** ***** are **** * *** qualified ***** ****** **** to *****. * **** wonder **** ************ **** have **** ********** *** integrators...
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Undisclosed Manufacturer #4
"******** *****" ** "******** money***********" ** *********?
******* ******** - *** implying ** ** ** isn't *********.
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Undisclosed Integrator #6
* ** ********* ** Verkada's *** ******** ** like **** ** ***** companies - **** **** the ******** *** **** on *** ***. ***** Verkada ****** ***** **** their *******, **** **** you ** **** *** promise ** *** *** exciting ******** *** *********** hardware.
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Rick Caruthers
02/07/20 12:53pm
**** ** * ***** article ** **** ******* to ** * ******* situation ******** **** *******..*** saying **** **** *** the ********* ****** **** WeWork *** ** **** point *** **** ****** profitable, *** **** ****** profitable *** ****** **********.
*** ***** *** *** Enabled **** ******* *** the ****** ******* - WSJ
**** **** ***** *** some ** *** ****** most ********* ****** ***** were ***** **** * risky ********** *****...
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Remiel Feng
02/07/20 05:55pm
***, ****** ***** ******* Verkada ***** ***** *** cameras, ** ***** ******* OEMed?
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John Honovich
***** *** **** * fair ****** ** ********** here ***** *** ************* of *******'* *********.
************,* *********** ***-**** ** this ****** *** ********* evaluating *******("** ******* ******* ** for *** *******, *** all-in ** **** ** 272 ******* ** *** end ** **** ****"). *** ***-**** ******* not ** ** **** Verkada *** **'* ***** an ********** ***** ** how ******* **** *** a **** **** **** end-user:
****'* * **** ******* of ***** ****** ** action: ****** ***** ** -> **** ******* -> inside ***** ****** -> free ***** *******. ******* did *** *** **** one *** * ** sure **** *** **** others ***** * ****** very *** ******** ************* use.
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John Honovich
********** *** * ******* talking ***** *** ********** where*** ***** ***** ** the ********(**** ***********):
*** **** ***** ***** putting ** **** ******* is - **** ***** Verkada ** **** **** money? **** ****** ** only ** *** *** only ***** ** ****. But ** **** ***** an *********** *****. **** if ******* ****** ******* $100 ** $*** ******* in *** **** * years? **** **** **** do **** **?
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Undisclosed Manufacturer #11
*** *****:
*******'* ***** ** ********* this:
****** *******, **** * sh*t **** ** ***** reps **** ****** ****-*** end-user *****.
**** ***'* *** *** firms ** ************ *** their **** ***** *** deals ** *** *********** they **** ** **** with (** ***** ** switching ***** ********)
***** ***** **** *** by *** *** *****, poorly ******** ** *********** and *** ******** ****** in *******. **** **** come **** ****, ****** sales, *** - **** from *** *********** ******** market (****** ****, ****** supply *****, ***). *** end ******? **** ** as **** *** ** fast ** ******** *** sell.
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Undisclosed Integrator #7
***... ***! **** * minute! **** ** ********'* sales **** ***** ** the **** *** ***** come **** *****, *****, etc. *******, *** ****** path ** ***** ************ sales ** *** ******* printer ********.
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