Vivint Gets $100M from Peter Thiel And Mitt Romney

•Published Apr 27, 2016 13:22 PM

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.

Vivint **********

************* ** *** ***** ** ****, then ********* ** ****** ** ****. Vivint ***** *** ******** ** * separate ******* ** ****. ****** *** ******** by ******* ****** **** ********** ***** for $** ** ****, *** ****** Solar ***'* ** **** *** **** entered ** ********* **** ********* ** 2015 ** ** ******** *** $*.** (**** deal ***** **** *******).

******* *** ****** ** $****, *** the ******* ****** ** ****** ** 1 ******* *********.

******** *** *** ******* **** ******** has ******** ** ****** ** ******. It ** ********* **** *** * founding *** ** *** *** ******* through ** * *****-******* ****** *********** and ********* *******.

Investment *******

*** ************ ***** ***** ***** *** ******** ******* as *** **-******* ** *** *****. Solamere [**** ** ****** *********] ** **** Romney's ** ****, *** ***** ***** has * ***** ****** *** ********* in ********** ********-******* ********* **** ******, Facebook *** ******.

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

**** *****, **** *********** ******** ******** ********* struggle ** *** ***** ********** **** rapidly. *********, ********-******** ******** ********* *** getting **** *********** *** *********** ******. We **** ******* *******'*$**** ***********,****'* $**** ** ***** *******. **** **** ** ****** *** $3.2B. ******* ******** *********** *** $****.

**** ********** ********* *** ***** ** huge ********** *** ********-******** ******** *********.

Contrast ** *** ****

** *********** ** ****** ** **-******** DIY ********.

********** ****** ******* ********-***** ******** *** ********* products, *** ******* ** *** ************ and **-********* ** ******** ** ******'* turn-key ******** **** ******** * ********** contract.

****, *** *********** ******* *********, **** offers **** ***** ** *** ******** without *** **** *** * ********** contract.

***** *** ******** ***** ****** * threat ** ******'* ******** *****, **** investment ******* ********* **** ********* *** massive ****** ** *** ***-****** ******** "connected ****" ******.

Vote ** ******

Comments (12)

Undisclosed Integrator #1

•Apr 27, 2016

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.

Reactions:

(3)

(2)

Brian Rhodes

•Apr 27, 2016

IPVMU Certified

In reply to Undisclosed Integrator #1

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?

Reactions:

Undisclosed Integrator #1

•Apr 27, 2016

In reply to Brian Rhodes

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.

Reactions:

Keefe Lovgren

•Apr 27, 2016

IPVMU Certified

In reply to Undisclosed Integrator #1

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...

Reactions:

Undisclosed Integrator #2

•Apr 27, 2016

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.

Reactions:

(1)

Brian Karas

•Apr 27, 2016

IPVM

In reply to Undisclosed Integrator #2

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

Reactions:

(1)

Undisclosed Integrator #1

•Apr 27, 2016

In reply to Brian Karas

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

Reactions:

Armando Perez

•Apr 27, 2016

Hoosier Security and Security Owners Group • IPVMU Certified

In reply to Brian Karas

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

Reactions:

(1)

Undisclosed Integrator #2

•Apr 27, 2016

Also in the news.....

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

Reactions:

Undisclosed #3

•Apr 27, 2016

IPVMU Certified

Maybe Romney has some synergy planned between Uniview and Vivint?

Reactions:

Keefe Lovgren

•Apr 27, 2016

IPVMU Certified

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...

Reactions:

Tyler Blake

•Apr 29, 2016

In reply to Keefe Lovgren

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.

Reactions:

(1)