Volition’s Physical Security Thesis
Over this past year, Volition’s Investment Team has prioritized forming and refining our thesis around the physical security market. Throughout our research process, an obvious theme that has jumped out to us is the accelerating deployment of cameras and sensors managed in the cloud. This migration to the cloud unlocks a new cohort of use cases that leverages computer vision and AI models built to analyze footage and data in areas that were previously limited. This fundamental transition is being bolstered further by the ever-decreasing cost of cameras and hardware in general.
We see several ways that these dynamics will continue supplying market tailwinds for the sector:
1) Lower cost of ownership of hardware that unlocks the SMB and mid-enterprise market.
2) Connected cameras supported by cloud-based software that lowers the barrier to adoption as software reduces the need for human monitoring and intervention.
3) The overlay of analytics and AI on cameras and sensors that expands the use cases and ROI of cameras beyond just surveillance.
Body Cameras and the Untapped Private Sector
We believe the body camera market benefits squarely from these market forces. With a 26% increase in violent crimes over the last ten years in the US, law enforcement has been put under the microscope. Existing security solutions, such as fixed surveillance cameras with limited 60-110-degree ranges, no longer cut it. As a result, law enforcement organizations have rapidly adopted body-worn cameras, giving rise to the $7.5B global bodycam market that is expected to surpass $15.74B by 2029.
First responders are not the only ones feeling the pressure. New regulations such as Martyn’s Law and EO 14074 require additional safety measures at public events. Meanwhile, private security, travel, and retail organizations are increasingly looking to protect their own employees and customers while collecting evidence to manage corporate risk. Research shows that the private sector is up to 13x the size of the first responder market, with over 22.5M potential body camera users.
Specifically, we’ve learned of use cases across verticals ranging from employee training to proof of service. Body cams and dedicated digital asset management (DAM) solutions are helping solve a growing number of pain points that were previously considered a cost of doing business. Solutions in the market today, however, largely cater to law enforcement with a suite of solutions specific to the vertical. And on the other end, off-the-shelf camera solutions are bare-bones, lacking key functionalities such as audit trails, asset management, workflows, and cyber security measures that are a must for enterprise-grade DAM solutions.
Our Investment in HALO
We are thrilled to announce our $20M Series A investment in HALO, a body camera and digital asset management platform for both the private and public sectors. The management team has done an incredible job building a solution that addresses the unmet needs in the market across several verticals, including private security. HALO provides an all-in-one solution combining its body cameras that are intuitive and durable, alongside its cloud-based DAM solution that enables teams to manage custody of cameras and video assets as well as analyze and retrieve video in a compliant and secure manner. The Company’s product-market fit is evident by its best-in-class customer satisfaction ratings across over 700+ customers and stellar customer retention rates.
Over numerous conversations with HALO CEO, Fiona Shanley, a proven growth executive at enterprises including Stripe and Microsoft, and the entire management team, we have developed strong conviction In HALO’s opportunity to build a durable, category-defining business. Importantly, the philosophical alignment with the team to grow a capital-efficient, innovative, and high-growth business that puts customer needs first, interlocks perfectly with Volition’s mission. We look forward to our continuing partnership with HALO as they embark on this next chapter, investing in product and customer success to continue building on their incredible traction.
-Tomy, Melanie, Michael, and Aaron
