By Patrick Chase and Tomasz Tunguz
Today, we are thrilled to announce that Redpoint has partnered with Spot AI to lead their $20M Series A!
Video cameras are everywhere; in every warehouse, factory, car wash, hospital, school, bank, and store. It’s hard to walk down the street without passing hundreds of video cameras. All of these cameras generate billions of gigabytes of data a day observing rich visual information of what’s happening now. But the software interfaces to access video today are clunky and purpose-built for surveillance.
At Redpoint we have been fortunate to work with amazing data companies over the years like Snowflake and Looker. These companies unlocked tremendous value by making enterprise data in the cloud easier to access. In the same way, we believe there is a huge opportunity for Spot AI to make video footage easier to access to more people at work. Spot AI is building an AI camera system to store, analyze, and collaborate on video footage.
Tanuj, Rish, and Sud, the founders of Spot AI, wanted the software to be easy to use, simple to install, and friendly to everyone. This resonated with the market that had struggled to access or leverage their video. Spot AI makes it easy to not only view and share, but ultimately drive customers to insights about their business like how their warehouse is used, where vehicles are, or who is entering their store.
We have wanted to invest in this market for a long time, as the video security market is estimated to reach $24B by 2027 in the US alone, while the global market is expected to reach $75B. In addition, there are many large companies that have been created in the space like Hikvision ($80B) and startups like Verkada that have already reached $1B+ valuations.
Spot AI disrupts the classic large upfront capex spend on software and hardware in this market with a modern software subscription model. In doing so, they align their business model with the customers. Every day cameras are getting, as Daft Punk would put it, “harder, better, faster, stronger,” while costing less. Spot AI’s disruptive model gives customers the freedom to choose their video hardware while providing a lower total cost of ownership. To make it simpler still, Spot AI provides customers free cameras, charging only a subscription for their software.
The Spot AI team has always stood out for their speed of execution and culture of placing bold bets. They will surface a problem, then come back a week later with the solution already in place. It’s incredible how quickly they have scaled the company and landed some amazing customers like SpaceX. And it’s just the beginning. They are not afraid to challenge what has worked for them in the past with what is needed for the future. Whether it’s Rish building an engine to take customer feedback and drive product improvements every 2 weeks, or Sud revamping the GTM structure to maximize new customer acquisition, they are all continuously improving Spot AI to align stronger to their customers and market.
We feel very fortunate to work with Tanuj, Rish, Sud and the entire Spot AI team on their mission to visually index the physical world and make that data useful to everyone at work. Run, Spot, run!
If you’re curious about building the future of video intelligence and want to solve this problem alongside an exceptional team, Spot AI is hiring.