Before the COVID-1 9 epidemic, Density was being used by firms like TechCrunch’s parent corporation, Verizon, to see how it could better use office space after the Yahoo !/ Aol combination. Now, thanks to the COVID-1 9 epidemic everyone wants the company’s technology to track build and room residence and use.
It’s one is why the company managed to raise $51 million in a new round of funding led by Kleiner Perkins with participation from previous investors like Dick Costolo’s 01 Advisors and the Los Angeles-based investment firm, Upfront Ventures.
” The primary move[ for challenge] has been being able to reopen constructs safely and to do so without infesting privacy ,” says Density chief executive Andrew Farah.
And while the company started out as a service for data-loving tech fellowships, retail store and coffee chains, it’s now become a pervasive engineering for needed for every business with shared opening, said Farah. That entails fulfillment cores, grocery store, warehouses, flesh processing flowers, in addition to something like TechCrunch headquarters.
What will the company do with all that money? Spend it on sales, sell, and actually going the tech into clients’ builds, according to Farah.
” A much of what we’re going to invest in is customer success, core infrastructure and ripening our product and sales ,” said Farah.” The first time our customers to be informed about us is when they get on a demo for a sales call .”
New seeks for the company’s hardware and software busines are pouring in, he said. And these prescribe series from $20,000 to $50,000 pilot projects to seven-figure, thousand-unit initial deployments.” All of our clients end up tripling in sizing from their initial estate ,” he said. Density prices a one-time fee of $895 for installing of its sensors and the other $ 800 per-sensor per-year for access to the data.
Density slogs through both path partners and direct sales, according to Farah, and the urgency of its full potential patrons has led to the big uptick in funding.
” A heap of clients are trying to solve a problem that they had last week. There’s a sense of urgency from real estate and safety crews that we haven’t seen before ,” said Farah.
Behind all of this is the demand from hires for safe, socially distanced public workspaces as the country continues to battle the COVID-1 9 epidemic that continues to ravage the U.S.
And while COVID-1 9 may be today’s central selling extent, investors like Upfront Ventures’ Mark Suster visualized the significance in Density’s technology much earlier.” The investment thesis for me mixes my creed in computer seeing as a next-gen I/ O( 3) along with my thesis that The Innovator’s Dilemma or Deflationary Economics drive all of the largest success on the Internet( 4 ). Today’s beings moving mixtures are staggeringly expensive and largely used in retail environments ,” Suster wrote in a blog pole announcing Upfront’s initial investment in the company, back in 2016.” The expenses had significantly restraint adoption and we think that’s about to change in a massive way .”
A 2016 animation of Density’s tracking capabilities via GIPHY
At Kleiner Perkins, the latest firm to back Density’s computer vision-based technology, the asset was a year-long process.
” I had heard through the grapevine that they were going to talk to investors ,” said Ilya Fushman, a brand-new conductor at the company and one of Kleiner Perkins’ partners, who had firstly begun speaking with Farah about a year ago.
Fushman said that Kleiner was interested in the real estate market and its commitment to Density comes in accordance with another recent investment in Proxy, a startup yield cardless and fobless building access controls.
” If you look for market sizing, which we do, there are still few sells that are as big as real estate properties ,” Fushman said.” It’s also a market that’s historically been under-penetrated by engineering. A much of construct handling is done on pen and paper when it comes to space utilization .”
Both access control and utilization have been areas that more business need to get a handle on thanks to the COVID-1 9 epidemic, which procreated backing a company like Density a natural fit, he said.