Smartfrog closes a second round of financing to continue strong growth
IoT start-up Smartfrog has raised a multi-million dollar investment – just 3 months after worldwide launch
Internet of Things (IoT) start-up Smartfrog has secured a second round investment of millions of dollars, just three months after its successful launch, bringing the total funding to around US$ 10 million. The round was led by new investor Target Global and existing investor e.ventures.
Smartfrog will primarily use the funds to further scale its global operations. The investment endorses the company’s position as a leading technology provider in the dynamic IoT market for consumers.
Smartfrog’s easy to install Home & Small Business Surveillance Solution enables users to “See Everything, From Anywhere”, and comes complete with video camera, app and video storage. Smartfrog’s solution is available globally and since its launch in October 2015 has acquired users in over 65 countries. Initial high demand was such, that within a few weeks of launch the product was sold out. Target Global invests predominantly in fast-growing B2C and B2SME internet companies, and its global positioning will support Smartfrog’s internationalisation. “Smartfrog’s business model is globally scalable, and driven by an impressive management team. It is an investment, that fits perfectly into our portfolio”, said Yaron Valler, Partner at Target Global.
This investment in Smartfrog by the global venture capital firm e.ventures, which already invested in the previous financing round, endorses the company’s position as a leading technology provider in the dynamic IoT market for consumers. e.ventures funding partners include major international retailers such as the Otto Group, the Metro Group and the REWE Group. “As one of the most promising IoT companies in Europe, Smartfrog has proven that its innovative cloud based SaaS business model is scalable, and its product is highly sought after by consumers”, says Andreas Haug, General Partner at e.ventures.
The Internet of Things has been hailed in a Goldman Sachs study as the “next mega-trend”. According to the study the home surveillance market is estimated to be an 18 billion USD market – as soon as 2017. According to a Deloitte survey, to-date IoT products have been too complex and expensive. This is where Smartfrog’s affordable, easy to use Home Surveillance Solution comes in – targeting the international mass market. Smartfrog’s team includes serial entrepreneurs and managers with a proven record of introducing complex technologies to the mass market, scaling IT and Consumer Internet Businesses, such as Strato, ClickandBuy and AVG.
Part of Smartfrog’s international going to market strategy is a “freemium product” offering, which is new for the IoT space. Smartfrog is the world’s first provider to make a free app available worldwide, alongside its paid Surveillance Solution. Smartfrog’s Free-App can turn almost every smartphone and webcam into a surveillance camera, enabling users to “See Everything, From Anywhere”. This is how the Company plans to achieve global reach and build the brand. In the next stage, customers can upgrade to the paid product and services. This strategy also facilitates the scaling of the business in emerging and developing countries.
In addition to its existing bases in Ireland, China, Germany and Switzerland Smartfrog will soon open offices in several countries, including the UK and USA.
Smartfrog is currently offering its products on its own e-shop and is already listed on major etailers such as Amazon and Notebooksbilliger.de. An initial agreement with Brodos, one of the leading distributors in the German- speaking region, has been concluded, securing the product availability across 1,700 etailers and retailers. In addition a number of Europe’s other leading IT distributors are currently in negotiations to secure Smartfrog’s offering in their stores. Smartfrog has also agreed a sales partnership with a major utility company.
Smartfrog is a tech company focused on the “Internet of Things”, which is about making everyday objects more intelligent and connected to the internet, e.g. via an app. The aim is to make the everyday lives of people more comfortable and more secure by making modern technologies user friendly and affordable. For this, Smartfrog has developed a universal IoT platform designed to build dedicated solutions across product areas. Having started with security and monitoring as a primary area, it offers an easy-to-use and affordable complete home security solution, so that users can always keep an eye on their home and business at any time and from anywhere. The package starts at €5.95 (£4.95) per month, with no minimum contract period and monthly cancellation. It includes the Smartfrog app, allowing users to manage up to ten cameras, a Smartfrog Cam and video storage.
Founded in 1998 and built on a strong, shared culture of entrepreneurship, e.ventures is a leading early stage venture capital firm with global scale. The firm invests out of dedicated funds in six geographies and combines a global investment strategy and philosophy with local presence and insights. Focused at the intersection of consumer internet, media and mobile, e.ventures partners with visionary company founders to disrupt global markets and build category creating companies.
Notable investments include AppFolio, Sonos, AngiesList, Groupon, FarFetch, The RealReal, NGINX, Deposit Solutions, App Annie, Auctionata, Munchery, and others.
For more information, visit the e.ventures website: https://www.eventures.vc/
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About Target Global
Founded in 2012, Target Global is an international VC firm with over $300 million in assets under management and offices in San Francisco, Berlin, Moscow and Tel Aviv. Target Global focuses primarily on fast-growing digital-enabled B2C and B2SMB companies in e-Commerce, Fintech, travel, software and mobile. Target Global manages a growth fund that invests in Series B and later stage opportunities (both primary and secondary) 5-30m$ per deal and a seed stage fund that focuses on late seed and early Series A investments of 200-500k$ per deal. Investment criteria are a) Digital-enabled businesses operating in a B2C or B2 SMB space; b) Targeting a large market and global opportunity; c) Led by an amazing team.