Flock Safety Secures $275M Funding, Expanding AI-Powered Surveillance Tech and Drone Manufacturing

Surveillance tech startup Flock Safety scores $275M in new funding, bringing its value to $7.5B - SiliconANGLE

Surveillance tech startup Flock Safety scores $275M in new funding, bringing its value to $7.5B The surveillance technology startup Flock Safety Inc. said today it has closed on a $275 million funding round that brings its value to a cool $7.5 billion, up from a prior valuation of $4.8 billion. The round was led by Bedrock Capital and Andreessen Horowitz, and saw participation from Greenoaks, Meritech Capital, Matrix Partners and Y Combinator. Flock's total amount raised now stands at over $950 million, making it one of the best-funded startups in its category. Flock is best known for its computer vision-powered video surveillance technology, which has become quite popular with law enforcement agencies and businesses looking to beef up their physical security. Its flagship products include its automatic license plate recognition and video surveillance software, and it also makes systems that can detect gunshots, selling these to schools, and is now looking to make its mark in the drone industry. Flock's technology can help to combat a wide variety of crimes, with one of the more intriguing uses being to prevent illegal "sideshows", where drivers of high-powered muscle cars take turns doing donuts in intersections in front of cheering crowds. In this particular scenario, it combined its gunshot detection audio technology with roadside cameras and artificial intelligence algorithms to listen out for wheel-spins and other telltale sounds associated with sideshows, distinguishing them from normal road traffic. Founded in 2017, Flock went through Y Combinator's startup accelerator that same year, and since then it has enjoyed tremendous success. Last year, it broke the $300 million mark in annual recurring revenue, showing growth of 70% compared to the year before. Surveillance technology companies can sometimes attract controversy, and Flock has had its fair share of that. It has come under scrutiny from the American Civil Liberties Union, among others, and civil rights advocates in Norfolk, Virginia are currently trying to prevent the company from deploying its technology there, citing privacy concerns. Despite this opposition, Flock has proven to be a massive hit with law enforcement, with more than 4,800 such agencies across the U.S. now said to be using its technology. It also counts just under 1,000 businesses, including major healthcare systems and retailers, as its customers. These enterprises account for about 30% of its revenue, the company told Reuters. With such strong momentum behind it, Flock is now said to be eyeing an initial public offering, and it reportedly hired its Chief Financial Officer Brandon Simins last year specifically to work towards that milestone. However, it does not have an official timeline in place for a public listing. Meanwhile, the company has been looking to expand its technology into less controversial applications. In January it announced it's partnering with a company called Midwestern Software Solutions LCC to help state Departments of Transport collect more precise data on road traffic, with one of the primary goals being to try and reduce road accident fatalities. It also wants to beef up the assistance it provides to law enforcement. Last October, it announced it had acquired the autonomous drone manufacturer Aerodome Inc., and said it wants to transform these into first responders that can fly to the location of a 911 call and scout out the scene before police officers arrive. The company is currently building a 100,000 square-foot factory in Atlanta, Georgia, to start mass producing these drones for law enforcement agencies, in a move that will likely go down well with 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," Flock Chief Executive Garret Langley told Reuters. The latest funding round stands out because startups that primarily cater to law enforcement rarely seek out funding from Silicon Valley investors. However, Andreesen Horowitz's general partner David George said Flock provides immense value 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," George stated. "Their ability to penetrate many police departments and have a very high market share can create a venture-scale outcome."

US Startup Flock Safety Raises $275 Million to Fund Manufacturing Plant, R&D

Flock Safety, a U.S. startup developing surveillance technology, has raised $275 million in new funding led by Andreessen Horowitz, as it invests in a manufacturing facility and expands into drone products, the company told Reuters. The investment values Flock Safety at $7.5 billion, up from $4.8 billion in its previous funding round last year. It brings the Atlanta-based startup's total funding to over $950 million, according to PitchBook data, making it one of the most well-funded startups in the region. The funding marks Andreessen Horowitz's third investment in Flock, an unusual move for the venture capital firm. Greenoaks Capital and Bedrock Capital also participated in the round. Flock, which sells security cameras and software to help police and businesses tackle crime, said it had surpassed $300 million in annual recurring revenue, a 70% year-over-year increase. The company added Brandon Simins as its CFO this year, as it readies for an eventual public listing, although the company doesn't have a specific timeline. Flock plans to launch U.S.-manufactured drones in 2025, as it builds out a 100,000-square-foot manufacturing facility in Georgia. "I'm excited to bring more manufacturing in the U.S., which will give us more control over our supply chain and help with our mission to eliminate crime," Flock CEO Garrett Langley said in an interview. Founded in 2017, the company says its surveillance system uses artificial intelligence to provide insights to aid investigations, such as identifying car plates. It now serves over 4,800 law enforcement agencies and nearly 1,000 businesses across major retailers and healthcare systems. Enterprise businesses account for about 30% of its revenue. Funding startups that sell to law enforcement is not very common for Silicon Valley investors. David George, general partner at Andreessen Horowitz, said Flock's growth in the past few years had proved the size of the market. "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. Their ability to penetrate many police departments and have a very high market share can create a venture-scale outcome," said George.