Sequoia enters home security arena with SimpliSafe investment
Home security firm SimpliSafe has just received a minority investment from Sequoia Capital, according to TechCrunch. The exact amount of the investment was not disclosed in the said report.
Jeremy Conrad, the founder of Lemnos Labs, talked about the increasing opportunities in the home security and automation industry: "There's a bunch of investments in the space. The fact is that everybody is looking at ADT and how they pull down a couple of billion dollars in revenue for a service that hasn't changed in twenty years. It's very similar to how Nest went after Honeywell in the thermostat space."
Sequoia's investment in SimpliSafe comes after Google acquired Nest Labs for $3.2 billion. This goes to show how profitable the sector can be. Before Nest entered the home automation space, investors had already started backing companies that addressed home security problems. Sequoia has signaled its entry into the sector with the SimpliSafe investment, the report detailed.
Sequoia went through a bidding contest handled by investment bank Raymond James. As of now, SimpliSafe's product is already being used in thousands of homes and have produced high ratings among its users, TechCrunch reported.