US-based surveillance technology company Flock Safety announced a landmark $275 million funding round on Tuesday, led by venture capital behemoth Andreessen Horowitz, to catalyse its expansion into domestic manufacturing and drone technology.
Investment through funding rounds and increase in valuation
The investment, which raises the value of Flock Safety to $7.5 billion from $4.8 billion last year, reflects the increasing investor confidence in the company’s growth potential. That puts total funding at more than $950 million, making the Atlanta-based startup a major player in surveillance tech. Clearly, Flock must be picking up some solid market traction with its third shot of venture capital from VC powerhouse Andreessen Horowitz and other participants including GreenOak’s Capital and Bedrock Capital.
Accelerating Revenue Growth & Positioning for IPO
Flock Safety’s remarkable growth recently included $300 million+ per year in recurring revenue, up 70% year-over-year. Indicating the company is ready to go public, Brandon Simins has been appointed CFO, but there is no timeline for such an offering.
In-sourcing drones and growing their composition
The new funding is being put to major use in the construction of a 100,000-square-foot manufacturing plant in Georgia. This assists in creating control for the organizations supply chain and aligns with its mission to combat crime out on the street. In addition to its 2025 US-manned drone plans, Flock Safety has been diversifying its product portfolio by expanding its existing product portfolio into the drone sector, which is poised for growth.
Garrett Langley, CEO of Flock, said: “I’m pleased to bring further manufacturing to the US so that we can have better control of our supply chain and better have the opportunity to fulfil our mission of ending crime.”
Market penetration and AI enhanced surveillance
Manoj K. “Max” Shwetank, co-founder and chief executive of Flock Safety, founded that company in 2017 and offers artificial intelligence-driven surveillance systems to assist law enforcement and businesses in preventing and investigating crime. Its technology, which offers vehicle number plate recognition, also fuels more than 4,800 law enforcement agencies and 1,000 businesses, the retail and health systems among them. Enterprise clients account for approximately 30% of its revenue.
Investor Impact: Fetisov Talks, Approach to Law Enforcement Tech
Silicon Valley investors such as the Andreessen Horowitz partner David George do not often back startups that sell to law enforcement, but he made an exception for Flock Safety.
“Flock Safety has one of the most compelling ROI [return on investment] equations to law enforcement that we’ve ever seen in software or hardware markets, in that they solve crime,” George said. “They can get into so many police departments and have a very high market share, that creates the potential for a venture-scale outcome.
“Making a Move in the Drone Game”
Flock Safety is making a big bet on drone technology. While in the air, drones can do more surveillance, enabling immediate surveillance over several districts and delivering critical video evidence for future investigations. It’s a sign of the company’s quality and control — and of its choice to build the drones here.
Addressing Growing Security Demands
The funding Flock Safety obtained a tribute to the demand for his kind of surveillance. Effective security technologies are in high demand as crime rates remain a hot topic for communities and businesses alike. Flock Safety is the leader in this surveillance tech category using state of the art hardware + AI powered analytics together for the first time.
Future Outlook
After its most recent funding round and its strategic choices to grow, Flock Safety’s future looks bright. The company’s bet on domestic manufacturing (along with entering the drone space) should help them focus on the surveillance tech market. As Flock Safety continues to enhance its product line and offerings, the company will play a key role in shaping the future of security solutions.
