Firm banks on new areas
CUPERTINO, Calif.--BroadWare Technologies, a provider of distributed video surveillance, secured a new round of funding led by venture capital investor Kinetic Ventures in mid-June, which fuels the company's move into new markets.
The round, valued at $7.2 million, includes new funding from corporate investor Cisco Systems, as well as additional investments from venture capital firms Dali Hook Partners, McKenna Ventures and Sigma Partners.
After traditionally focusing on the government and military markets, Bill Stuntz, chief executive officer of the company, said the company's plans center on moving into the enterprise and commercial sectors.
"We think that those markets have been looking pretty hard at the changes in the market and are now at a place to start spending and putting these new systems in," he said.
The increased interest from mid- to high-end commercial customers was another reason the company made the move to expand its footprint at this juncture. Stuntz said these companies are interested in surveillance technologies, such as BroadWare's, because they are concerned with protecting employees, as well as physical assets.
Stuntz said the new financing was more than what the company had originally planned on securing. He said investors were drawn to the company due to their attraction to the video surveillance arena as a whole.
"We were going out for a couple million dollars and then more people were interested in getting into the investment," Stuntz said.
"The security industry is a growing area and people have started to investigate it more."
Stuntz noted that the company does have new product offerings currently being developed that are directly aimed at enterprise and commercial customers.
However, one thing the company will continue to address is the integrated systems market.
"What we see is that the medium- to high-end user does not want separate systems," he said.
"They want a security system that operates as one system and is integrated as a total solution. And that is what we are all about."