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Routers for the connected home
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The Story of the Company
Securifi makes routers that are easy to set up. Its first product, Almond, a touchscreen wireless router that is a hub for the smarthome was announced and started shipping in June 2012. Almond takes 3 minutes to set up and has a 4.5+ star rating across 8,700+
reviews on Amazon.
With the emergence of the smart home (projected to increase from 10% of US homes in 2014 to 30% in 2018, global market to reach $100B in 2018), households now have needs for protocols beyond WiFi (e.g., Zigbee, Zwave). In order for data to go from a Zigbee
end device to the cloud or a phone, there needs to be a device that “translates” from one protocol (frequency) to another.
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Securifi’s second product, Almond+, a router that has this functionality built in and also controls the smart home cloud and apps. It is a smart home “hub”. It has applications that enable security for doors/windows, smoke/gas/CO2, siren, motion and conveniences
such as thermostat, locks, lights, switches. For example, the Almond+ platform enables complex interactions in the home such as, turning on parking lights every day between 9pm-6am, or turning on lights when there is motion.
Last month (September 2015), Securifi opened up new sales channels, including BestBuy Canada and QVC (US). These two channels are expected to each generate 7-figure revenues in 2016.
Beyond revenues from selling the hardware product of Almond+, Securifi’s cloud platform will enable scaling and future recurring revenues such as parental controls, monitored security and 24-hour support.
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Founder Background
Rammohan Malasani (Founder—CEO) studied at IIT Madras and UCSD, and founded Ubiquiti Networks (NASDAQ:UBNT, currently $2.5B), wireless networking hardware but for enterprise, and left when
the company was mid-7 figures in revenue and profitable. He bootstrapped Ubiquiti to $100M in revenue before taking one growth round and going public. He also also managed $130M in revenue at Linksys, which helps with negotiations for better terms with distributors.
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Key Investment Facts
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Company was bootstrapped to cashflow profitability in 2014 with ~$5M in revenue (no external funding)
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Revenues:
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2015 ARR: ~$10M
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2016 expected revenue >$20M
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Margins:
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50%+ for online channels for the lower priced versions ($89 and $99) that comprise majority of the volume
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40% for retail channels (on a blended basis across channels and product mix)
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CAC is less than $5/unit for online channels (Amazon Ads, AdWords etc)
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High NPS : 75% of reviews on Amazon are 5 stars vs 65% for Nest and 55% for SmartThings
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Founder Salary : $4000/mo (also refused to take any liquidity as part of this financing)
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Key Investors
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Firebolt Ventures
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Paul Buchheit (Partner at Y Combinator)
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Jeff Huber (SVP at Google)
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*To invest now, please click the above button and use the Early Access password: scrf2
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