Serial entrepreneur Dean Drako, founder and CEO of cloud-based video surveillance company Eagle Eye Networks Inc., believes artificial intelligence is about to revolutionize that entire industry.
One of the biggest issues with surveillance, Drako said May 18, is getting humans to effectively monitor the feeds. AI will have the ability to monitor and act upon security footage in real-time, transforming the surveillance industry into a more of a "video safety system or a video security system," he said.
"We can watch the cameras for smoke, we can watch the cameras for fire, we can watch the cameras for people falling and not being able to get up," Drako said. "All of those are safety and security and crime reduction things."
Count Japan-based security integration giant SECOM Co. Ltd. among those who believe in Drako's vision.
Eagle Eye Networks on May 17 announced a $100 million primary equity investment from SECOM — which is among the largest funding rounds of 2023 by an Austin company. It's part of a $192 million investment that's split with Maryland-based Brivo, a cloud-based access control company that Drako in 2015 acquired a majority stake in. He now serves as the company's chairman.
Eagle Eye's video surveillance and Brivo's access control services combine to make up the major components in the physical security of a building, Drako said. Sadahiro Sato, SECOM managing executive officer, in a statement called Brivo and Eagle Eye Networks "the market leaders in cloud physical security," adding that the investment will "provide the best technology possible to keep businesses and communities safe.”
The large raise for Eagle Eye highlights the power of artificial intelligence in the venture capital landscape — the company is expected to invest the fresh funding into its suite of AI-based analytics tools, along with general expansion.
“The SECOM investment underscores that cloud and AI are the future of physical security,” Drako said in a statement. “Both Eagle Eye and Brivo will use a significant portion of the investment to further develop AI that dramatically improves the security of enterprises and businesses globally."
Drako said SECOM was interested in Eagle Eye, founded in 2012, because it was the first mover in the cloud video surveillance industry and because its open platform allows it to be molded to meet the varied needs of businesses. Acknowledging that it is a "pretty rough market right now for raising capital," Drako added that Eagle Eye also stood out due to its growth and success.
The company is approaching 500 employees globally and has been growing by 50% annually "for quite a while now," Drako said. He added that SECOM was "very concerned that I stay invested in the companies," noting that he plans to stay with Eagle Eye for the long haul. He added that Eagle Eye is expected to have about 600 employees a year from now.
"I like to build things. My hobbies are all about building things," Drako said. "My biggest hobby is building companies."
The largest concentration of employees is in Austin, but the company also has significant offices in Amsterdam, Tokyo and Bangalore.
Drako is one of the more interesting entrepreneurs with a stake in Austin's startup scene. The multi-time founder has done a little bit of everything, including founding cybersecurity company Barracuda — which was acquired after Drako left for $1.6 billion.
The serial entrepreneur has founded a number of other companies, and is the founder and CEO of Drako Motors, which builds super luxury electric cars. Long story short: he's a compelling character who discussed his career in-depth on an episode of Austin Business Journal's Texas Business Minds podcast in 2021.
Now, a Drako-led company has landed one of the largest Austin funding rounds of 2023.
The announcement is part of a string of sizable recent funding rounds for Austin startups that breaks a relative cold streak for the sector. Noveon Magnetics Inc., for instance, on May 16 announced a $75 million series B raise that was larger than all but three local funding deals announced in 2023's first quarter. Meanwhile, Neuralink competitor Paradromics announced May 18 a $33 million series A round to help support development of its brain-computer interfaces.
The first quarter of 2023 saw only 63 startup deals close, according to the latest Venture Monitor report put together by PitchBook and the National Venture Capital Association. That deal count was the lowest in Austin since 2016.
