Vivint Gets $100M from Peter Thiel And Mitt Romney

By: Brian Karas, Published on Apr 27, 2016

One of the most prominent Silicon Valley investors and a former presidential candidate are backing Vivint with a $100 million investment. 

In this note, we look at the details of this new investment, and the high valuations for consumer-focused security companies.

*** ** *** **** prominent ******* ****** ********* and * ****** ************ candidate *** ******* ****** with * $*** ******* investment. 

** **** ****, ** **** at *** ******* ** this *** **********, *** the **** ********** *** consumer-focused ******** *********.

[***************]

Vivint **********

************* ** *** ***** in ****, **** ********* to ****** ** ****.  Vivint ***** *** ******** as * ******** ******* in ****. ****** *** ******** by ******* ****** **** Blackstone ***** *** $** in ****, *** ****** Solar ***'* ** **** and **** ******* ** agreement **** ********* ** 2015 ** ** ******** *** $2.2B (**** **** ***** fell *******).  

******* *** ****** ** $650M, *** *** ******* claims ** ****** ** 1 ******* *********.

******** *** *** ******* Todd ******** *** ******** in ****** ** ******. It ** ********* **** for * ******** *** to *** *** ******* through ** * *****-******* dollar *********** *** ********* funding.

Investment *******

*** ************ ***** ***** ***** *** Solamere ******* ** *** co-leaders ** *** *****. Solamere [**** ** ****** available] is **** ******'* ** fund, *** ***** ***** has * ***** ****** for ********* ** ********** consumer-focused ********* **** ******, Facebook *** ******.

Huge ********** ** ******** *****

**** *****, **** *********** ******** security ********* ******** ** see ***** ********** **** rapidly. *********, ********-******** ******** companies *** ******* **** investments *** *********** ******.  We **** ******* *******'*$**** ***********,****'* $**** ** ***** funding.  **** **** ** Google *** $*.**.  ******* ******** *********** *** $200M. 

**** ********** ********* *** trend ** **** ********** for ********-******** ******** *********.

Contrast ** *** ****

** *********** ** ****** is **-******** *** ********.

********** ****** ******* ********-***** ******** and ********* ********, *** focuses ** *** ************ and **-********* ** ******** to ******'* ****-*** ******** that ******** * ********** contract.  

****, *** *********** ******* lightbulb, **** ****** **** level ** *** ******** without *** **** *** a ********** ********.

***** *** ******** ***** appear * ****** ** Vivint's ******** *****, **** investment ******* ********* **** investors *** ******* ****** in *** ***-****** ******** "connected ****" ******.

 

Vote ** ******

Comments (12)

Undisclosed Integrator #1

04/27/16 01:44pm

Vivint's success and innovation in the residential marketplace are undeniable. While I cannot stand them, the market is experiencing a significant shift towards the kind of systems they install. No one asks me to compare our system to ADT anymore; he or she ask me to convince them not to buy Front Point and Vivint. Vivint has figured out how to get the average everyday consumer to purchase an alarm system. The rest of us should take note. Their method of doing business will roll into commercial security eventually, whether by them or someone else.

Consumers who purchase DIY are not the same as the customers who buy a "professional installation" these two markets are non-conflicting...for now.

Avatar

Brian Rhodes

IPVMU Certified | In reply to Undisclosed Integrator #1 | 04/27/16 01:52pm

This is the first time I have ever heard praise or admiration of Vivint's sales techniques.

I'm not saying you are wrong; I'm just saying that I am genuinely surprised.

What are they doing differently, that ADT or Front Point or Monitronics does not do?

Undisclosed Integrator #1

In reply to Brian Rhodes | 04/27/16 02:15pm

Their sales reps know how to pound pavement and their technicians know how to train new customers. These guys hire the best communicators out there. Sure they don't know the first thing about security, but they know how to help people. Consumers want their hand held more than anything else. Vivint employees know how to do that. I'm not saying these guys are ethical or I would put that garbage security system in my home, I'm just saying they know how to get it done. It's all about Face Time with customers, this is how they shine.

Vivints cohecive marketing is unlike our industry has ever seen. From hats to tee shirts to having their name on an arena. They're not screwing around with terrible FB ads or low caliber sub contractors like ADT.

As a former Mormon missionary, I can tell you that two years of helping people with their stuggles, does wonders for a career in sales. This is who their sales team is.

Keefe Lovgren

IPVMU Certified | In reply to Undisclosed Integrator #1 | 04/27/16 08:50pm

As a former Mormon missionary, I can tell you that two years of helping people with their stuggles, does wonders for a career in sales. This is who their sales team is.

nailed it... also no fear of going door to door and having it slammed in their faces...

Undisclosed Manufacturer #2

04/27/16 02:17pm

They created the "summer door knocker program" using recently returned Mormom missionaries and sending them to areas out of state.

These young guys have just spent 2 years knocking on doors and practicing convincing people of a commitment more lasting than an alarm contract.

Avatar

Brian Karas

IPVM | In reply to Undisclosed Manufacturer #2 | 04/27/16 02:38pm

Funny you should mention the door knockers. Is pest control the next big investment frontier?

Undisclosed Integrator #1

In reply to Brian Karas | 04/27/16 03:00pm

The pest control model is brilliant, one of my friends recently sold his small business for good money.

Avatar

Armando Perez

IPVMU Certified | In reply to Brian Karas | 04/27/16 10:00pm

Why does everyone in this video have green eyes? Its kind of creepy...

Undisclosed Manufacturer #2

04/27/16 02:20pm

Also in the news.....

http://www.bloomberg.com/news/articles/2016-03-15/vivint-solar-seeking-financing-after-canceling-sunedison-deal

Undisclosed #3

04/27/16 02:54pm

Maybe Romney has some synergy planned between Uniview and Vivint?

Keefe Lovgren

IPVMU Certified | 04/27/16 08:54pm

apx/vivint entered the market at the right time, right at the beginning of the union of home monitoring systems and automation integration into these systems... had zwave locks, thermostats, lighting control and interactive services not been an option they (vivint) would not be as successful as they have been...

Tyler Blake

In reply to Keefe Lovgren | 04/29/16 07:29pm

I doubt that statement is accurate. A lot of their growth comes from the fact that they were/are geographically situated in some of the hottest fastest growing real estate markets in the U.S. in the last half decade 2010-2015 Colorado was 3rd fastest growing, Utah 4th, Idaho 10th.

Hate to say it but markets that are not growing have an uphill battle for residential alarm sales.

Vivint has lucked out on having hardworking salesmen as well as booming high growth expansion states / sites to their home office. Way easier to manage growth when you aren't spread across 50 states. This is the same reason why Vivint is huge in mountain west and less so when you get to the Eastern seaboard.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

The Battle For the VSaaS Market 2020 - Avigilon, Arcules, Eagle Eye, OpenEye, Qumulex, Tyco, Verkada on Jan 13, 2020
While VSaaS suffered from inflated expectations in the 2010s, 2020 marks a new decade and a much stronger competitive position for VSaaS vs...
Vivint Valuation Falls $1.5 Billion on Dec 19, 2019
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger. Inside this note, we examine...
ADT CEO Not Worried About DIY: "2 Discrete Markets" on Dec 13, 2019
ADT's CEO is not worried about DIY, characterizing DIY and ADT's DIFY as "2 discrete markets" at the Imperial Capital Security Investor's...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
"Stress in the Residential Market" - Major Lender Exits on Nov 06, 2019
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Giant Tyco Campaigns Against Startup Qumulex on Jul 25, 2019
One is a giant conglomerate that owns the world's largest security integrator. The other has no shipping products. But Tyco is campaigning...
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...

Most Recent Industry Reports

OnSSI Founders Return, Start Corsight on May 25, 2020
The OnSSI founders are back, less than 2 years after selling OnSSI to Qognify, they have returned to Corsight, a spin-out of an Israeli AI...
GeoVision Presents AI and Facial Recognition on May 22, 2020
GeoVision presented its AI analytics and facial recognition at the April 2020 IPVM New Products show. Inside this report: A 30-minute video...
Density Presents Occupancy Monitoring For Coronavirus Protection on May 22, 2020
Density presented its cloud-based occupancy sensor to deal with Coronavirus at the May 2020 IPVM Startups show. Inside this report: A...
Openpath Presents Two Door PoE Controller on May 21, 2020
Openpath presented its new PoE controller at the May 2020 IPVM Startups show. Inside this report: A 30-minute video from Openpath including...
Bosch Presents MIC 7100 Extreme PTZs on May 21, 2020
Bosch presented its MIC 7100 Extreme PTZs at the April 2020 IPVM New Products show. Inside this report: A 30-minute video from Bosch...
Hikvision Chairman Targeted For Sanctions As Federal Watchdog Calls Out Hikvision "Serious Religious Freedom Violations" on May 21, 2020
The US government's religious freedom watchdog has criticized Hikvision for being "credibly implicated in serious religious freedom violations"....
Hikvision Temperature Screening Tested on May 20, 2020
Hikvision has ramped up the promotion of its 'temperature screening' system, including their salespeople arguing for no blackbody needed. But how...
Axxon Presents VMS 4.4 and AI Behavior Analytics on May 20, 2020
AxxonSoft presented its VMS 4.4 and AI behavior analytics at the April 2020 IPVM New Products show. Inside this report: A 30-minute video...
Indoor Robotics Presents Tando Aerial Drones on May 20, 2020
Indoor Robotics presented Tando indoor autonomous drones at the May 2020 IPVM Startups show. Inside this report: A 30-minute video from...
Directory of 89 Video Surveillance Startups on May 20, 2020
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly...