S2 Security opens the door to new money
WELLESLEY, Mass.--Looking to ramp up product development and marketing activities, S2 Security Corp. returned to the capital markets to raise an undisclosed amount of funding from individual investors.
S2 Security, a provider of network-based integrated physical security systems, has raised more than $7 million to date through two rounds of financing. New and existing individual investors in the company participated in the round, including company executives and employees.
S2's chief executive officer, John Moss, voiced his vote of confidence in the business by contributing the most money in the round. Proceeds will be used to open new sales offices throughout the year and marketing expenses, such as advertising and attending trade shows.
He said S2's customers prefer to work with independently financed businesses because there is less pressure to please stakeholders and pursue liquidity events. As such, the company decided to forgo venture capital.
"The argument used to be made that there is smart money and not-so-smart money," said Moss in reference to working with institutional investors, "and VCs like to say their money is smart money."
Moss established the company with six other former Software House employees in 2003. Previously, he founded and held the top executive position at Software House, a provider of access control software and hardware.
The S2 NetBox, a physical security management system, is the company's flagship product. The IP-based device features access control, alarm monitoring, video, intercom and temperature monitoring applications in one network appliance.
For more on this story, see the September issue of Security Systems News.