Vidient Out of Business - Analytics Market Examined

By: 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 Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

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.

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

CyberExtruder Face Recognition Profile on Jan 04, 2019
CyberExtruder offers 3D modeling face recognition software that they say provides quicker and more accurate matches than other 2D face recognition...
Motorola Acquires VaaS / Vigilant LPR on Jan 08, 2019
Less than a year after Motorola Solutions spent a billion to acquire Avigilon, the company has made another major acquisition spending nearly a...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
IBM Shuts Down Intelligent Video Analytics on May 02, 2019
Abruptly, IBM has discontinued its Intelligent Video Analytics solution, it confirmed to IPVM. IBM's video analytics have faced recent media...
Anyvision Aims For 2022 Revenue of $1 Billion on Jul 17, 2019
Only 3 video surveillance manufacturers do a billion dollars or more in annual revenue - Hikvision, Dahua, and Axis. Now, Anyvision plans to join...
AI Video Surveillance (Finally) Goes Mainstream In 2020 on Sep 03, 2019
While video surveillance analytics has been promoted, hyped and lamented for nearly 20 years, next year, 2020, will be the year that it finally...
Startup XNOR.ai, Inventors of YOLO, Video Surveillance Plans Examined on Sep 24, 2019
YOLO is arguably the most discussed and hyped computer vision model today. The inventors of YOLO have a startup named XNOR.ai that aims to bring...
How Cobalt Robotics May Disrupt Security on Sep 13, 2019
While security robots have largely become a joke over the last few years, one organization, Cobalt Robotics, has raised $50+ million from top US...
RealNetworks SAFR Facial Recognition Profile on Sep 25, 2019
RealNetworks entered the surveillance market by giving away their analytics to schools for free, and is now targeting large commercial users with...
nFlux AI Startup Profile on Oct 28, 2019
nFlux, an Amazon, Google, and Microsoft funded AI startup told IPVM their mission is to build the most intelligent video analytics platform in the...

Most Recent Industry Reports

Apple Acquires XNOR.ai, Loss For The Industry on Jan 16, 2020
Apple has acquired XNOR.ai for $200 million, reports GeekWire. This is a loss for the video surveillance industry. XNOR.ai stunned the industry...
Installation Course January 2020 - Last Chance on Jan 16, 2020
Thursday, January 16th is your last chance to register for the Winter 2020 Video Surveillance Installation Course. This is a unique installation...
Halo Smart Vape Detector Tested on Jan 16, 2020
The Halo Smart Sensor claims to detect vaping, including popular brand Juul and even THC vapes. But how well does it work in real world...
PRC Government Entity Now Controlling Shareholder of Infinova/March Networks on Jan 16, 2020
A PRC government entity is now the controlling shareholder of US security manufacturer Infinova as well as its wholly-owned subsidiary March...
Network Cabling for Video Surveillance on Jan 15, 2020
In this guide, we explain the fundamentals of network cabling for video surveillance networks, how they should be installed, and the differences in...
ONVIF Trashed Statement, Confirms Dahua and Hikvision Still Suspended on Jan 15, 2020
ONVIF has 'trashed' the suspension statement for Dahua, Hikvision, Huawei, etc. but confirms to IPVM that those companies are all still...
Wyze Smart Door Lock Test on Jan 14, 2020
Wyze's inexpensive cameras have grabbed the attention of many in the consumer market, but can the company's new smart lock get similar...
Wesco Wins Anixter on Jan 13, 2020
Despite Anixter earlier arguing that Wesco's bid was inferior to CD&R's by nearly 10%, Anixter confirmed that they are taking Wesco's 3.1%...
Anixter Resisting Takeover From Competitor, Bidding War Emerges, Wesco Wins on Jan 13, 2020
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
Bandwidth Fundamentals For Video Surveillance on Jan 13, 2020
Bandwidth is the most fundamental element of computer networking for video surveillance systems. Because video surveillance can consume an immense...