SimpliSafe gets $57 million investment from Sequoia Capital
SimpliSafe Inc., a Cambridge maker of an easy-to-install home security system, raised a hefty $57 million from one of the nation's most prominent venture firms, Sequoia Capital.
The company aims to provide an Internet-era update to the standard security system, with a device that wirelessly sends out alerts and can be controlled from a smartphone. SimpliSafe said its security system is easy enough for a homeowner to set up in a few minutes.
The firm is attempting to mirror the success of other companies with Internet-connected home devices, such as Nest, maker of a wirelessly controlled thermostat that Google acquired for $3.2 billion in January.
The funding for SimpliSafe rates as one of the largest for a Boston-area tech company so far in 2014, up there with the $157 million round for e-commerce site Wayfair LLC and the $100 million round for storage software firm Actifio Inc.
This is the first large outside funding from a major venture backer for SimpliSafe, which was founded in 2008; previously the company raised an undisclosed amount from angel investors.
SimpliSafe plans to use the money for hiring, sales expansion, and development of products.
SimpliSafe provides alarm monitoring for $15 a month. Alerts are sent on a cellular network, meaning homeowners do not need a landline installed in their homes, and they can receive notifications via text message.
The SimpliSafe device starts at $230 for basic motion and entry sensors, while more expensive versions include sensors for fire and gas leaks. The company reports it has more than 100,000 customers.
Sequoia Capital is one of the nation's largest and most successful venture investors. Based in Menlo Park, Calif., it has invested in Apple Inc., Cisco Systems Inc., and Yahoo and recently was the sole investor of the smartphone messaging tool WhatsApp, acquired by Facebook for $16 billion.
Sequoia said one of its partners, Scott Carter, will join the SimpliSafe board.