Developer of traffic safety technology raises $28 million
Maker of safety technology for vehicle fleets raises more money, bringing its total to date to $46 million, which it is going to use to expand operations abroad and delve more deeply into the consumer market
There is money to be made in traffic safety control technology, and this is why a developer of such technology, San Diego, California-based DriveCam, has raised $28 million in a Series C round of venture capital. The round was led by Insight Venture Partners of New York and Integral Capital Partners of Menlo Park, California, and the money will be used to expand a video surveillance system for operators of large vehicle fleets and to augment the company’s managed services programs for consumers. The latest round brings the total investment in the company to more than $46 million.
We note that the company has been busy revamping its busines model, converting from a business model primarily built on hardware and software sales to one based on a recurring revenue model. CEO Bruce Moeller said the company has operated near profitability and still has a healthy balance from its $18 million first institutional round of June 2005, but that it chose to raise additional financing in order to accelerate international expansion and the launch of a consumer program in partnership with Madison, Wisconsin-based American Family Insurance. DriveCam is currently pursuing partnerships with other consumer market partners, including other insurance companies and consumer electronics retailers that already deal in the automotive market.
The company grew sales from $14.7 million in 2005 to $28 million in 2006. DriveCam worked with Core Capital Group of San Diego in pricing the round, and received a pre-money valuation of $125 million for the deal, up from a post-money valuation of $47.9 million on the previous round.
-read more in this news release; and in Clifford Carlsen’s The Deal discussion
