Wyze Raises $110 Million, Aims For World-Class AI Cameras
Wyze has raised $110 million, more than 3 times its total previous VC funding, as the company, with fast top-line growth, has struggled with low gross margins.
Inside this note, we examine this new round, the challenges the company faces, what it aims to do with this funding, and the opportunity it has in video surveillance.
Compare to other large recent rounds - AnyVision Raises $235 Million and Flock Safety Raises $150 Million, Lead By A16Z.
Transformative ****** ** *******
**** ******* ******* **** ** **** a ******-**** ******* *** *** ** so ******* ** ******* * ********** of ********. ***** ****** $*** ******* *******, **** *** ******** **** ~$** million ******** ** ******* *** *** company's ***** ~* *****.
Hodgepodge ** ********
***** **** ******* **** ************ *******, in *** **** * ***** *** company *** ******** * ******* ** products, **** ** ***** ********* **** of * **** ****** ***** **** an *** *********, *.*., ***** ******, masks, **********, ******** ****** ********, ***.
*** **** **** *** **** ** that **** *********** * ******** ***** and **** ************ ****** ***** ****** Wyze **** *****, ***** ******, ****** cleaners, ***. ******.
Revenue ********* - $*** ******* *** ****
**** ********* $** ******* ** **** revenue *** ** ******** ~$*** ******* in **** *** ~$*** ******* **** year. *** ******* ******* ********* ** grow ***-**** ******* ** ** ***** of ******* ******** (*.*., ** ********~$** ******* ** ***** ****** ******* *** **** ****).
***** ********* *** ******** *** ************, Wyze *** **** *** ***** *******, e.g., **** *** **'* ***** ******* are ~*% *** ******* ***** ******* are ***** **% (********* ** ********** ** **** *****).
Valuation ********* - $*** ******* ** $* *******
** ******** ****'* ********* ** ********** low ******** ** ***** *******, ** the $*** ******* ** $* ******* range. **** ** ******* **** ****** of ****'* ******* ** ************ (** estimate **** **** *%) *** ******* of *** *** ***** ******, ************* nature ** ****** *** **** *****.
**** ** **** **** ********* ** value ***** ** ** * *********** of (*) * ***-****** ****** ******, (2) * ********** ** ******* ********, and (*) * ************ ********. *** subscription ******** *** *** **** ****** to ********* ********* *** ** ********* the ******** **** ** *** ****'* business.
Going *** ** ******** **** *********
** *** ******** ****, ****'* ******* risk ** ********** ***** *** ** business ** ********* *** ** **** funding, *.*., **** * **** *** when**** ********* ******* ******* ******** ********* *** ****:
***bad **** ** **** **’* **** ********* to run, and the costs are recurring. We greatly *****-********** *** ******* ***** ***** when we started working on this project last year (we’ve also since hired an actual finance guy…). The reality is we will not ** **** ** ****** ***** ***** *** **** ** ********. [emphasis added]
Investing **** **-****** ********
***, **** **** *** $*** ******* round, ************** ** ******** ****:
** *** ******** **** *** ********* heavily ** ***** *****-***** ********** ************ into *** ****** ********
**** ** ********** **** ****'* ********* **** *** **** **** ****** $15 *******, ****** *** **** ** **** round **** **** ** ************* **** within **, * **** ********* **** of *&*.
Million ******* *******
* **** ***********(***** ************ ** ******* ** $** to $** *** ****),**** *** ********** ******* ******* *** ***** **:
****** ******* ************ ******* **** ** in $** ******* *****. *******, ******* Wyze's ****** **** *** ** ***, we ********** **** *** ***** ******* are ****** ****** (*** **%) ****** higher **** ****'* ********* ******* ***** margins.
10 ******* ***** ******* ****
** ******** ** ******* ***** **** IP ******* **** **** **** ***** on ** ***** ******* **** **** ***** ******** * ******* ******* *** **** sold *** ********* ** ******* ***** throughout ****.
**** ***** **** ~**% ** **** cameras *** ***** *** **** ************ plan. ****'* ********** *** *** *** plan *** **** **** ******* *** a **** ** ****** **** **** certainly ********, ****** ******* **** ** ultimately **%, **%, **%, ***. ******* to ** ****.
Competition ****** ****
**** ***** ********* ****** ***********, *.*., Amazon's *** ***** ******* *** ********* promoted ** ****** ** ******* ***** point ** ****:
****, ***** ************ ** ** ******* similar ************* ******* *** **** **** than ****:
Resolving ******* ********
******* **** **** **** **** **** improve ** ******** ******* ***** **** **-******* ******** *********** ******* ******** ** *** **** year:
****, ** **** *** ******** ******* has *** **** ***** ** ***. It’s **** * **** *** ** swallow ******* ** *** *** **-****** and **** *** ********* **** ** to ******** ******** *****.*** **** ** business ** *** ******* **** ****** up *** ***** * *** ********** on *** ******** ******* **** ** things. ** **** **** *******, *** need ** ** * ****** *** of ******* *** ***** ****** ** place *** ******* **** *** *********** they **** ** ** **********.** ******, with *****, ** **** **** **** of **********, ********** **** ***** **** to **** ****** ******** ******* ******, which ** *** *** ******** ***** dropped ** ****. ** **** **** increasing ****** ** **** ** ** can, *** ********, ** *** **** few ****** *** ******* ******** **** is **** **** ***** ** *****. That ** * **** ****** *****, but **’* **** ** **** **** better.
Jay-Z ****** ** *****
******* ******* ******* ** **** *** round *** *** ******* ******* ********, ***** ** **-******* ** ****** Jay-Z. ***** ***** ** ** **** or ***** **** ***-* **** ******* or ******* ****, ** ** **** so, **** ***** ******* **** ****, as *** ******* ******* ********* ** word ** ***** *** **** ****** paid *********.
Outlook - ************ ******** ******
** ****** **** ** ***** ** growing *** ************ ******** *** ***** its ******* ***** ******* (**** ***** lights ** ***** ** **** ****** camera *****), ** ** **** ** be *******.
*** **** **** *** **** ** that **** **** *********** * ********** well-known ***** *** **** * ********** large (*** *******) ********* ****** ****. If **** *** ******** ** **** that ****, ******** *** ********** ** users *** *** ************* *** ******* more ************ ******** (*.*. **** **** facial *********** ** ****** ****), ** has *** ********* ** ***** * multi-hundred-million ****** ************ ******** ** *** next *** *****.
** **** ***** **** **** * bigger ******** ***** ** ***** ******* they ***** ** * *** ******.
***** ***** ** ** **** ** claim **** ***-* **** ******* ** endorse ****…
***** ** **** ** * ***** of *** ******** ************ *****, *** in ***** ** *** ******-**-***, ***** be * **** ******* ‘******* *** up’ *** ** **********.
**** ********** *****.
*'* ** ***** **** ******* *** have * ******** ********** ** ***** ecosystem. * **** ** ***** *** of **** **** ** ****** **** offer ** * ********* ***** ********* video *********. *'** *** * *** problems **** ********* ***** *** *** to **** * ** & *** replaced ***** ******** ***** **** ********. Their ********* **** * *** ** work. **** ********** ******** *** ***** box & ********* *** ** ** neighbor's ***** **** ** * ****** when * *** ****** **. *'* guessing ****'** **** ** **** ******?
* **** * **********, * ****** of ***** ****, * ********* ***********, Wyze ****, * **** ** ** Headphones, **** ***** ** (***** ****'** discontinued ******* **) *** * **** Car. *** ** *** * ** pleased **** ***** ******** & *******, despite ****** ***** *********. * **** Cam **** ** ** ** ********** additional ******* ******** ** **** **** $1.25 *** ****** *** *****. **** have **** **** ********** ** ******** wants *** *** **** ****. * think **** ****** ***** ** ***** core ********** ******, *** **** ****** to ***** ******** **** *** *** their **** *** ** **** *****.
*'* **** ** *** **** ******** this *** *******, *** ********** ***** changes ** ***** ******* *** **** runs ******* ** ** ***** *** of ***** ******** ****** ******* **********. "Wyze **** *** ******* **** *** mission ** ****** **** *******, ****-**-***, affordable ***** **** ********** ********** ** everyone. ** ******* *** ****** **** in ***** ******** – ****’* *** we ******* ** **********, ****-**-*** ***** home ****** **** *** **** *** solve ****’* *********, *** *** *****. So *** *** ** **********. *** watch **********."
**** ******** * ***** ***** ***** past **** *** * **** *****. It's * **** ***** ***.
**** *****! * ** **** **** would **** * **** ***** ** ten ** **** ****** ******** ** focus ** *** *******. ***** *** the "***'* **** ******** *** ********** we *** ******** ***** **" ***** doesn't ******* *** **** ********** ** me. *****? *****? ******-********** ****? **** makes ** **** **** *** ***** is *** ** **** *** **** to ***** **** ***, *** *******.
******** * ***** ** ***** ** selling......
*** ********* ****'* ***** * **** Car...
******, *** *** ***********. * **** using ** ** ***** ** *** dogs **** *'* *** ****.
** **** ** ***** **** * drive ** ****** ****. **** **** a ***** ***** * ****.
**! **, * ****'*. * **** cameras, ***** *****, *** ***** ******* (that **** ***** ******). * ***** rather **** ***** ** ****** **** making ***** ******* **** * ********** for **** **** * ***** ** a ***. * ** ******** *** newer **** ** *** ** ******** ones ***** ******.
****** *** ******** ******* **** *** are *******. *** *********** *** ******** battery ****. * *****'* ***** *** new **** ***.
* *****'* *** *** ******** **** the **** ***** ******* *.*, *** have **** ** **** ** *** kitchen ** *** ****** ** ******* doors (*** ** *** ****** *******, the ***** ***** * **** ** m&m's) *** *** ****** ******* *** backpack ** ***** **. ****** ***** great **** *** ***** **** ** the *****. * **** * ****** Wyze ***** *.* **** * ***** opened. *'** **** ** *** ***** out *** *** ** **** **** problems. *****'* ***** *** *** ***** yet ******.
****'* **** ******* **** ******* ******* offering ******* ** *****? *'* ** afraid ** *** **** ** ** network.
********* *** ********** ***** ***** **** changes ** **********. **** *** ** Wyze **** ************. *** **** ******** I'm ********** ** ** *** *** cameras ********. *** *****, ***** *** other ***** *** **. *** **** about *** ** ******* ***** ** still **** *** ********* ***** ****** products. *** *******, ******** ***** ******* from **** ** *****, ****** ***** times, ****** ***** ****** *** ****** audio. * *** **** *** ** and **** **.