The first home automation company to go public is Control4, which had a successful IPO last week.
Trading under the ticker CTRL, the Salt Lake City company’s technology provides "brainpower" for peoples’ homes. Just about everything can be controlled remotely through a mobile device: energy and lights, security system, garage door and television/ entertainment systems.
This is a controller:
The company priced the IPO around $16 per share and it’s up to about $22 today after going public on Friday. That gives Control4 a $500 million valuation.
Sales have been increasing a healthy 23% a year for the past four years, but after 10 years of operation it still shows losses.
Control4 says its software is being used in 120,000 homes, generating $109.5 million last year with a net loss of $3.7 million.
Cisco invested $20 million in Control4 a couple of years ago, now worth double that.
Cisco also helps develop Control4’s products and is integrating them into its "Internet of Everything" strategy, which it believes will be a massive $14 trillion market over the next decade.
Smart phones and home Wi-Fi networks have opened the door to this interconnectivity now that bandwidths can support these functions.
This is one of the popular cleantech sectors for venture capital right now. A couple of competitors are Nest and AlertMe.
Back in 2010, Control4 partnered with Lockheed Martin to create a comprehensive residential energy control system.
Loading...