Vidsys gets $11 million
VIENNA, Va.—Software provider Vidsys on April 26 announced it closed an $11 million funding round, which Vidsys CEO James Chong told Security Systems News will be used for “global expansion and to provide the right level of customer support and engagement [for the Vidsys web-based platform.]”
Vidsys, based here, originally known as a provider of PSIM (physical security information management) software, now refers to its software as CSIM, converged security information management software. The product is used to manage risk and business operations.
Participating in this funding round are existing investors NewSpring Capital, Atlanta Equity, Flybridge Capital Partners, and JVax Investment Group, and a new investor, Harmony Partners.
Harmony has invested in 80 tech companies over its history, but this is its first investment in a physical security company. Mark Lotke, Harmony Partners managing partner, said his venture capital firm makes expansion stage investments. “We’re excited about growth and momentum,” Lotke said. As Vidsys, founded in 2005, has grown “its growth rate has accelerated—that’s rare,” he said.
Lotke declined to give revenue figures, but he said the Vidsys’ growth rate in 2015 was much higher than 2014.
The last time Lotke saw that, he said, was when Harmony invested in Aveksa. The following year there was a bidding war for Aveksa, which was acquired by EMC, he said.
Vidsys is “a mature product, it works, the value proposition is compelling for the customer, the marketplace [demand is there]. We’re happy to be part of round,” Lotke said.
What’s the difference between PSIM and CSIM?
Chong, who was named Vidsys CEO last year, called CSIM the “next level” of PSIM.
“PSIM is primarily focused on physical security devices [access control, video, intrusion detection]. With CSIM, the primary focus is not on physical security but on converged security [which] includes cybersecurity and IT and a true emphasis and focus on information management,” he said.
CSIM’s information management elements that are not included in a PSIM include “social media data, business data analytics, business information metrics and big data algorithms [that are] broader than physical security,” Chong said.
Vidsys’ customers include Fortune 50 companies, government entities, smart cities and utilities. It is used for NERC CIP compliance for its utility customers. It has also been used for special events, notably the October 2015 IMF World Bank Group annual meeting in Lima, Peru.
About half of the customers are based in North America. The customer base outside of North America—particularly in the Middle East and Asia—is growing at a faster rate, Chong said. Chong declined to divulge specific numbers but said “during the past year we’ve seen between 20- to 40 percent growth depending on the region and markets.”
The software’s integration with IoT devices is an important new capability, Chong said. Customers are using Vidsys to “automate or create efficiencies with product lines … to drive higher business efficiency or ROI.”
The IoT sensors incorporate information about “building efficiency, energy, and [with utility customers] ... water sensors for the city of Houston, for example,” Chong said.