S2 Security seeks growth capital
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 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. Moss declined to disclose the details of the deal, but did say this financing was larger than the previous one.
"This is basically the round where people said, 'the product is good, people get it, people want it,'" Moss said. "We didn't do it out of desperation, we did it because this looks like a very good thing."
Proceeds will be used to open new sales offices throughout the year and for marketing expenses, such as advertising and attending trade shows.
The company staked ground for the first time internationally in August, opening a sales office in London. Moss said his plan is to open one sales office every three months, starting in the western United States, followed by the Midwest and Southeast.
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. Software House is now a business unit of Tyco Fire & Security's access control and video systems division.
The S2 NetBox, a physical security management system, is S2's flagship product. The IP-based device features access control, alarm monitoring, video, intercom and temperature monitoring applications in one network appliance.
Moss said what separates S2 from its competitors is its completely IP-based product, meaning it does not have to attach to a server to operate and can be remotely upgraded, for example.
"The typical security management system lasts 12 years in the field and will be repaired," he said. "Our S2 NetBox will last 12 years, but will never be repaired."