Security tech firm Verkada valued at $5.8 billion as workplace safety demand rises
Dec 3 : Security products maker Verkada said on Wednesday it was valued at $5.8 billion in its latest investment round led by CapitalG, $1.3 billion above its previous round in February.
The new valuation comes as companies boost their investment in integrated security systems to safeguard staff and facilities, following the targeted shooting of UnitedHealth executive Brian Thompson outside a Manhattan hotel last year.
Verkada did not disclose the amount raised but said the new valuation comes after the company surpassed $1 billion in annualized bookings.
San Mateo, California-based Verkada, founded in 2016, makes cloud and AI-powered physical security platforms that consolidate cameras, access control and alarms on a central dashboard.
It sells security cameras, door-access tools, environmental sensors and alarms to enterprises, schools and hospitals.
"As a scaling business, it receives a premium because investors believe it can compound into a category leader in a very fragmented market," said Michael Ashley Schulman, partner at Running Point Capital Advisors.
The company said the investment will accelerate its AI capabilities and may also provide liquidity for employees.
Schulman said Verkada's widely publicized camera breach and criticism has possibly made the company stronger and more resilient, adding that it has learned its lessons the hard way.
In 2021, a small group of hackers viewed live and archived surveillance footage from hundreds of businesses by gaining administrative access to cameras supplied by Verkada, one of the hackers had told Reuters.
In February, Verkada had secured Series E funding at a valuation of $4.5 billion.
