(Bloomberg) — Security camera company Verkada Inc. is raising $200 million at a valuation of $4.5 billion, a significant premium over its last funding round, according to people familiar with the matter.
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Venture capital firm General Catalyst is leading the financing for the San Mateo, California-based company, said the people, who asked not to be identified discussing private information. The new valuation is a billion-dollar jump over its previous $3.5 billion value, and the financing brings the company’s total funding raised to more than $650 million to date, according to PitchBook data.
Verkada did not comment on the deal. A spokesperson for General Catalyst didn’t respond to a request for comment.
Founded in 2016, Verkada sells internet-connected security products, including cameras equipped with facial recognition software, alarm systems and intercoms, to corporations, police departments, school districts and more, according to its website.
The shooting of UnitedHealth Group Inc. executive Brian Thompson earlier this month has driven more interest in physical safety precautions, including services like those sold by Verkada, as corporations look to enhance security measures.
“Had it not been for cameras, I am not sure they would have been able to solve this,” said Verkada investor Aydin Senkut, founder of Felicis Ventures, referring to the search for Thompson’s killer. “The reality is that the only way we are going to be safer in society is if we have more cameras.”
The new funding round comes shortly after the Federal Trade Commission in August issued Verkada a $2.95 million fine for failing to implement appropriate information security practices, which allowed a hacker to access cameras inside psychiatric hospitals and women’s health clinics, the agency said in a statement.
During the March 2021 hack, attackers gained access to 150,000 live cameras, allowing them to see inside Tesla Inc. and cybersecurity company Cloudflare Inc., and to view police interviews, Bloomberg reported.
Verkada’s existing investors include First Round Capital, Next47, Sequoia Capital and Meritech Capital.
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