Investors Throw Caution to the Wind—Give Ring A Whopping $61.2 Million

At a time when technology media sites are rife with jeremiads about reduced valuations and declining venture capital funding, one Los Angeles company’s success is defying the norm. Ring, a Santa Monica-based manufacturer of smart doorbells, recently announced that it has raised $61.2 million in a Series C round from Kleiner Perkins Caufield & Byers and Richard Branson.

According to Ring’s CEO Jamie Siminoff, the recent funding will be used to expand the company internationally and to underwrite additional research and development. “The money we are raising today is for the things we will do in 2017, 2018, and 2019,” Siminoff said.  Although he declined to disclose Ring’s valuation for this latest round, he confirmed that a reported valuation of about $200 million was close to accurate.  Since its founding in 2011, the company has raised $100 million; it now employs 300 people.

Ring’s “smart doorbell” includes a video camera, speakers, and a microphone that allow users to view the doorbell via an app when they are away from their house, or when they are home but aren’t comfortable coming to the door. The device, which costs $200 to $250, also has motion-detection sensors that automatically prompt the video camera to record nearby activity and then alert the customer as it’s happening.

Ring’s stated mission is to reduce crime in communities. At a time when more than two million burglaries take place nationally every year, Ring has tapped into a large market of customers who are willing to pay for a new approach to home security. Technology companies entering this space increasingly recognize that solutions they offer customers need to be proactive, in contrast to the more reactive approaches of many traditional security companies. One startup with a similarly preventative approach is Package Guard, a new company that has created a device to prevent “package pirates” from stealing packages, and to save its users the headache of trying to trace lost items. Like Ring, it concentrates on avoiding a theft rather than dealing with its aftermath.

With its latest round of funding, Ring solidifies its leading position in home protection.  It is reportedly planning an initial public offering at the end of 2017.