Vidient Out of Business - Analytics Market Examined

Author: John Honovich, Published on Nov 04, 2010

Video analytics manufacturer, Vidient, has gone out of business. This is the first prominent, well funded video analytics company to do so. [The last major analytics event was DvTel acquiring ioimage in January 2010.]

According to an interview with Vidient's CEO, while 2010 revenue was up sharply over 2009, Vidient was unable to secure additional funding. The company reports that a sale fell through at the last moment.

Vidient has a 3rd party broker who will coordinate a sale of the technology over the next few months. The goal of this includes providing support for existing Vidient customers.

[UPDATE: April 2011: Vidient's technology has been sold to Agilent.]

Vidient has focused on high end applications mostly in critical infrastructure and transportation. As we examined in June 2009, Vidient had shifted to a full services approach where they directly optimized and commissioned large, mission critical systems. We believe this was a solid approach to overcome performance issues common in video analytic projects.

Vidient's reported customer list includes: Amtrak, Los Angeles Metro, Montreal Metro, St. Louis Metro, US Departments of State, Navy, Homeland Security, etc.

Funding and Investor Interest

After being spun out of NEC in 2003, Vidient raised approximately $30 Million in VC funding. This is significantly above average for video analytics companies only topped by investments in 3VR, BRS Labs and Object Video. [See our Video Surveillance investment directory for details.]

We are not surprised about the difficulty in raising funds. We have weekly calls with top investment firms and the appetite for video analytics investments is quite low. This undoubtedly relates to disappointing market adoption and challenges hitting revenue targets that tens of millions in funding brings.

What Does this Mean for the Video Analytics Market?

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Tell us what you think in the poll:

We think this is an important sign of the challenges that video analytics now face. With easy money gone after 2008 and widespread market disappointment in the technology, video analytics manufacturers will need to become cash flow positive as soon as possible. Additionally, video analytic customers should closely evaluate the financial sustainability of their providers.

One important structural difference of Vidient relative to other analytics providers is that they did not go into the recorder or camera business (e.g., VideoIQ and Cernium into cameras, 3VR and Aimetis into recorders, etc.). In this respect, Vidient's product approach of concentrating on selling analytics only is closer to BRS Labs or Object Video. We are not certain which approach will be best in the long run but we do see this as an important go to market distinction.

[UPDATE: April 2011: Vidient's technology has been sold to Agilent.]

1 report cite this report:

Investments & Acquisitions Directory 2011 on Dec 26, 2010
This directory provides a single source of information on funding and acquisitions in the video surveillance market. It is part of our Video...
Comments : PRO Members only. Login. or Join.

Related Reports

Verint Victimized By Ransomware on Apr 18, 2019
Verint, which is best known in the physical security industry for video surveillance but has built a sizeable cybersecurity business as well, was...
ISC West 2019 Report on Apr 12, 2019
The IPVM team has finished at the Sands looking at what companies are offering and how they are changing their positioning. See below for 50+...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 09, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...
Bosch AI Camera Trainer Released And Tested on Apr 09, 2019
Bosch is releasing a highly unusual new AI feature - 'Camera Trainer'. Now, coming as a standard feature in Bosch IVA/EVA analytics, one can train...
Airship VMS Profile on Apr 03, 2019
Airship has been developing VMS software for over 10 years, however, with no outside investment, and minimal marketing, the company is not well...
Silicon Valley Access Startup Proxy Raises $13.6 Million on Mar 28, 2019
This mobile-credential based access startup just raised $13.6 million in funding.  Further, they claim that their technology can free businesses...
Panasonic Favorability Results 2019 on Mar 27, 2019
Panasonic favorability declined, as the company struggled to find its way amidst a changing market and its ill-timed decision to become a Dahua...
Lenel Favorability Results 2019 on Mar 26, 2019
The positive news for Lenel is that integrators do not dislike them as much as they used to.  The negative news for Lenel is that integrators...
IBM / Genetec Surveillance System Investigated Over Philippines Human Rights Abuses on Mar 22, 2019
A lengthy investigation into an IBM video surveillance project in the Philippines, raising concerns IBM helped local police conduct a bloody...
Large Hospital Security End User Interview on Mar 21, 2019
This large single-state healthcare system consists of many hospitals, and hundreds of health parks, private practices, urgent care facilities, and...

Most Recent Industry Reports

Access Control Course Spring 2019 - Last Chance on Apr 19, 2019
This is the last chance to register for the Spring Access Control Course. IPVM offers the most comprehensive access control course in the...
Riser vs Plenum Cabling Explained on Apr 18, 2019
You could be spending twice as much for cable as you need. The difference between 'plenum' rated cable and 'riser' rated cable is subtle, but the...
Verint Victimized By Ransomware on Apr 18, 2019
Verint, which is best known in the physical security industry for video surveillance but has built a sizeable cybersecurity business as well, was...
Milestone Drops IFSEC on Apr 18, 2019
Milestone has dropped out of Europe's largest annual security trade show (IFSEC 2019), telling IPVM that they "have found that IFSEC in EMEA no...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...
Door Operators Access Control Tutorial on Apr 17, 2019
Doors equipped with door operators, specialty devices that automate opening and closing, tend to be quite complex. The mechanisms needed to...
Securadyne CEO: IPVM 'Entertaining For An Ignorant Few' on Apr 16, 2019
Securadyne's CEO Carey Boethel is unhappy with IPVM's report - Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied. Indeed, he...
Dahua Repositionable IR Multi-Imager Camera Tested on Apr 16, 2019
Dahua has released their first repositionable multi-imager camera, the Multi-Flex 4x2MP, claiming integrated IR, true WDR, and flexible...
Strong ISC West 2019 For Manufacturers But Concerns For 2020 March Move on Apr 16, 2019
ISC West 2019 was strong for manufacturers, according to new IPVM survey results of 100+ manufacturers, consistent with 2018 results. However,...
Axis Supports HD Analog on Apr 15, 2019
In 2017, Axis declared 'Everything is IP': Now, in 2019, Axis has released support for HD analog, with their new encoders.  Why the change?...

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