Ring Raises $28 Million After A Shark Tank Fail
Ring, the connected video doorbell, just announced a $28 million Series B round of funding at a valuation of $60 million.
The round was led by Branson, Shea Ventures, and American Family Insurance.
To date the Santa Monica based company has raised $37.5 million in private capital.
The funding will go towards expanding the company’s vision for the connected video doorbell, and help them work on adding new products and features to develop remote home security.
Founder Jamie Siminoff appeared on “Shark Tank” in September 2013.
He was attempting to raise $700,000 for his company, then called DoorBot.
He believed it was worth $7 million at that time.
DoorBot let you see who was at your door and even pretend you’re home when you’re not which made it a convenient home security system.
He received one offer from Kevin O’Leary but turned it down and left with nothing.
When he pitched to the sharks DoorBot had $250,000 in online sales from the month before.
After the episode aired Siminoff was able to get the $700,000 he was asking for at his $7 million valuation from other investors,
“We think we got at least $5 million of additional sales through the airing of ‘Shark Tank.’ It just absolutely throttled our revenue, awareness in the market from every level. Everything just popped after that.”
The company originally debuted under the name DoorBot, but Siminoff wanted more of a serious image so he rebranded last year while further developing the technology, and Ring was born.
The name change brought the company more credibility which helped them get into some of the top retailers like Home Depot, Target, Best Buy, Brookstone, and Amazon.
Siminoff seems like he’s had crazy success since rebranding. So what are the major differences between DoorBot and Ring?
DoorBot and Ring were built around the same concept- they both connected your home Wi-Fi network to stream two-way audio and video to the user through their smartphone or tablet.
Ring takes it step further with motion sensors so the homeowner is notified of a visitor right away and can connect via video extremely quickly.
This is an imperative change as one of DoorBot’s main complaints was the connection time.
The other major problem with DoorBot was the battery life so Ring has an internal rechargeable lithium-polymer battery that lasts for over a year; a drastic change from the four AA setup DoorBot had.
Both systems featured night vision but Ring records their videos in HD.
Perhaps the biggest difference between the two is Ring’s Cloud Recording service.
This allows all interactions to be saved to the cloud and accessed from anywhere through the mobile app.
Ring Chime is a new feature that is possibly the most logical thing that DoorBot overlooked.
It simply lets the visitor use Ring as a normal doorbell so homeowners don’t miss someone because their phone is in another room.
Ring’s technology has become well known for the security it gives a homeowner who is away but can appear to be home to an intruder.
The company has grown to 120 employees and Siminoff wants to focus on his vision which is creating features that can help secure entire neighborhoods.
While he won’t give too many details, he has said that computer vision, social features, and additional outdoor cameras will be involved.
Major investor, Richard Branson, explains why he decided to back the company,
“What excites me about Ring is its efficient, convenient approach to crime prevention and home monitoring and also its entrepreneurial leadership team.”