ZeroEyes CEO Mike Lahiff isn’t planning on his startup turning to a Series B fundraising round. In fact, he'd prefer the 3-year-old company not have to raise venture capital dollars again.
Lahiff views Conshohocken-based ZeroEyes' recently raised $20.9 million Series A round as a means to expand its team of about 50, continue product development and net more clients. The startup previously raised $2.5 million in seed funding last year to grow its staff.
Ideally, ZeroEyes will become an entirely revenue-driven business before an “eventual” initial public offering, Lahiff said. If the startup had to turn to a Series B, he said it would likely happen in two or three years.
He declined to share ZeroEyes’ current valuation.
“I'm hoping I don't have to do another round,” said Lahiff, a former Navy SEAL who co-founded the company with other military veterans. ZeroEyes is an AI-based platform that uses clients’ security systems and video analytics to detect firearms. If a firearm is detected using the platform, an alert is sent to the ZeroEyes team, which can then alert local authorities and emergency services.
Lahiff doesn’t think ZeroEyes will need to raise another VC round because of the way it’s funded and its business model. The startup could also look at debt structuring to raise capital, he said.
“There's other alternatives out there than just selling equity to get capital to continue growing a business and investing in the business,” Lahiff said. “And so I want to explore other options before I just go out and stick on a typical VC route.”
The $20.9 million Series A round will be used to beef up the company’s sales and marketing department, as well as its research and development team. ZeroEyes will also be putting funds into general expenses, including its monitoring centers in Conshohocken and Hawaii, he said.
During the Covid-19 pandemic, the company pivoted from serving only K-12 and other education clients to expanding its reach to corporate clients and government sites. In the next three years, ZeroEyes aims to be on 150,000 cameras. The software is on under 5,000 cameras now, Lahiff said. Clients include the Kenosha Unified School District of Wisconsin and the South Side Area School District in Beaver County, Pennsylvania.
There have been 410 mass shootings in the U.S. in 2021, or shootings in which four or more people are shot, according to the Gun Violence Archive. The more cameras that ZeroEyes has access to, the higher the likelihood of a possible shooter being identified and responders sent to the scene, Lahiff said.
“We're trying to get on as many cameras as possible,” he said.
