Flock Safety Raises $275 Million, Achieving a $7.5 Billion Valuation
Flock Safety Inc., a startup specializing in surveillance technology, has secured $275 million in a recent funding round, elevating its valuation to $7.5 billion. This represents a significant increase from a prior valuation of $4.8 billion. The investment round was spearheaded by Bedrock Capital and Andreessen Horowitz, with participation from Greenoaks, Meritech Capital, Matrix Partners, and Y Combinator.
With this latest infusion of capital, Flock’s total funding surpasses $950 million, positioning it as a well-funded entity within its sector. The company is primarily recognized for its video surveillance technology, which leverages computer vision. This technology has gained considerable traction among law enforcement agencies and various businesses seeking to bolster their physical security measures.
Flock’s key offerings include software for automatic license plate recognition and broader video surveillance capabilities. The company also provides systems designed to detect gunshots. These are marketed to schools. Furthermore, Flock is looking to make inroads into the drone sector.
One noteworthy application of Flock’s technology involves preventing illegal “sideshows,” where drivers perform dangerous stunts in public areas. By integrating its gunshot detection audio technology with roadside cameras and artificial intelligence algorithms, Flock can identify the distinctive sounds of spinning tires and other audio cues associated with sideshows, setting them apart from typical traffic noises. This is one example of how the company is using its technology in innovative ways.
Founded in 2017, Flock participated in Y Combinator’s startup accelerator program the same year. Since then, the company has achieved remarkable success. Last year, Flock surpassed $300 million in annual recurring revenue, reflecting a 70% growth rate compared to the year prior.
Addressing Controversies and Expanding Applications
Companies in the surveillance technology sector sometimes face criticism, and Flock is no exception. The American Civil Liberties Union and civil rights advocates in Norfolk, Virginia, have raised concerns about privacy issues related to the company’s technology.
Despite this, Flock has experienced significant adoption by law enforcement agencies. Over 4,800 such agencies across the U.S. reportedly utilize its technology. Additionally, nearly 1,000 businesses, including major healthcare systems and retailers, are counted among its clientele. These enterprises account for approximately 30% of the company’s revenue, according to information provided to Reuters.
With strong momentum, Flock is reportedly contemplating an initial public offering. The recruitment of Brandon Simins as Chief Financial Officer last year was apparently to facilitate preparations for this step. However, the company has not yet established a formal timetable for a public listing.
Flock is also exploring the expansion of its technology into less contentious areas. In January, it unveiled a partnership with Midwestern Software Solutions LCC to assist state Departments of Transport in acquiring more precise data on road traffic. One of the primary goals of this collaboration is to contribute to the reduction of road accident fatalities.
Flock is additionally aiming to enhance its support for law enforcement. In October, the company announced its acquisition of Aerodome Inc., an autonomous drone manufacturer, with plans to transform these drones into first responders capable of flying to the scene of 911 calls to provide situation assessments before the arrival of police officers. Moreover, Flock is establishing a 100,000-square-foot factory in Atlanta, Georgia, to begin the mass production of these drones for law enforcement agencies. This expansion is expected to align with the objectives of the new White House administration.
“I’m excited to bring more manufacturing to the U.S., which will give us more control over our supply chain and help with our mission to eliminate crime,” CEO Garret Langley told Reuters.
Investor Perspective
The recent funding round is notable because startups that are predominantly geared toward law enforcement often struggle to secure investments from Silicon Valley investors. However, Andreessen Horowitz General Partner David George underscored the substantial value Flock delivers to its customers.
“Flock Safety has one of the most compelling ROI equations to law enforcement that we’ve ever seen in software or hardware markets, in that they solve crime,” said George. “Their ability to penetrate many police departments and have a very high market share can create a venture-scale outcome.”
