Rusnano Sistema SICAR and Skolkovo Ventures Invested $8 Mln in Cloud Video Surveillance

01 October 2018

The Rusnano Sistema SICAR Venture Fund, created jointly by JSFC Sistema and RUSNANO, and The Skolkovo Ventures Industrial Fund, formed with RVC participation, invested $8 mln in the next round of financing for Ivideon, the developer of the cloud-based video surveillance (VSaaS) and video analytics platform solution. Skolkovo Ventures also acted as an investment advisor for the transaction.

The Ivideon platform solution allows not only to record and save video but also to analyse it, increasing the efficiency of business processes, marketing and sales, the level of security, transparency and competitiveness of companies. In particular, Ivideon is able to recognize people's faces in order to identify unwanted visitors and signal the occurrence of queues in stores.

Ivideon intends to use the attracted funds to promote the solution on foreign markets and to expand the client base 5 times over 3 years, primarily due to an increase in the number of medium and large businesses connected to the service. The company plans to increase its share of international revenues to 40% in the next 3 years.

Within 8 years since the company was founded, more than 3 mln companies and individuals have used the services of its cloud-based smart video surveillance platform. The Russian platform brings together users from more than 100 countries. The service can be integrated with any video camera or dash camera, and its interface is translated into 10 languages. The company's clients number among such well-known brands as Philips, Honeywell, Google, MegaFon, Yandex.Taxi, Acronis, Gett, PIK Group, Tinkoff Bank, Moscow Jewelry Factory, Dodo Pizza and many others. The company's partners are the largest manufacturers of IP cameras whose share of the world market exceeds 40%.

Andrei Yudnikov, General Director and Founder of Ivideon: “Our service is unrivalled in the markets of Europe and the USA in terms of availability and ease of installation for businesses of any size. Any business owner or marketer will easily be able to evaluate the problems identified through video surveillance and correct certain business processes. The participation of professional Russian investors in our project—RUSNANO, JSFC Sistema and Skolkovo Ventures—will enable us to dramatically enhance the coverage of the service and use our own example to prove the ability of Russian teams to create competitive global products.”

Sergey Vakhterov, Managing Director of RUSNANO Management Company and a member of the investment committee of the Rusnano Sistema SICAR fund: “We are proud we acted as the lead investor in the financing round of the Russian company Ivideon. The main factors of investment attractiveness for us were the market potential and the promising application of technology both in Russia and abroad. According to experts, the volume of the global cloud video surveillance market will grow at a rate of 22% annually and will reach $6 bln by 2022. Today, the demand is being shaped by a huge number of players, including the “smart city” and “smart home” systems. Ivideon is currently one of the key players on the Russian video surveillance market with a share of about 30%.”

Alexey Katkov, Managing Partner of JSFC Sistema and a member of the investment committee of the Rusnano Sistema SICAR fund: “Ivideon is a successful project in the Russian market, the team has developed a unique cloud platform that allows not only to have access to online video streaming and video archives but also to connect third-party developer video analytics. We expect that our investments will help the business to increase its presence in foreign markets, especially in the b2b segment for small businesses. The global video surveillance market continues to grow. The video analytics segment remains the key driver with a growth rate of over 30% annually, by 2022 its volume will exceed $11 bln.”

Vladimir Sakovich, Managing Director of Skolkovo Ventures: “Ivideon is a platform solution for the video surveillance and video analytics market, which has made a significant leap over the last 3-5 years. The competitive advantage of the company is the ease of implementation of its solutions in any field of application, from B2C to B2B and B2G markets. At the same time, Ivideon remains open for integration with external video analytics modules, which have been actively financed in recent years by both Russian and international investors.”

Alexey Basov, Deputy General Director—Investment Director, RVC: “The transaction with Ivideon was the first investment of the RVC and Skolkovo mutual fund, which was launched a year ago. The company operates in a highly promising market for video surveillance and analytics, where basic technological foundations have already been created, and the products of Russian developers are mainstream abroad and, in many respects, are superior to international competitors. The fund’s investments will enable the Ivideon team to scale up their business and expand into international markets.”

Reference

Rusnano Sistema SICAR is a private equity fund with $100 million under management established by Sistema and RUSNANO in August 2016. The fund was set up for a seven-year investment period that may be extended, and is open to outside investors. The fund's investment focus is the technology sector. The average single investment size is $3-20 million for growth-stage companies or late venture stage companies with working products. At the end of 2017, the fund had invested $16 million, including in Apis Cor, a developer and manufacturer of unique 3D printers for the construction industry, GEOSPLIT, a developer of an innovative system for the monitoring of oil-producing well inflow profiles, as well as other companies.

The fund’s website: www.rss-fund.com