Cloud-based smart security company Rhombus Inc. has raised $43 million to grow and develop new products and innovations in physical security.
The Sacramento-based company secured $26 million in equity funding along with $17 million in debt financing.
"This capital infusion is a testament to the trust and confidence our investors and customers place in our vision,” said Rhombus CEO Garrett Larsson, in a news release.
He said that with the funding, the company is poised to continue rapid growth.
“The opportunities are vast, and we are committed to leveraging this capital to pioneer innovative solutions, forge strategic partnerships and further solidify our position as a leader in the industry,” Larsson said.
Since 2016, Rhombus has offered wireless and artificial intelligence-enabled video surveillance cameras that can track movement, identify faces and count pedestrian traffic, all of which can be monitored remotely. It has also added sophisticated audio surveillance technology and last year it added technology-enabled remote door-access sensors to its suite of offerings.
Rhombus does its own engineering and designs its own software and firmware. The company is working on new products and services, said spokeswoman Sarah Lathe. “We have things in the pipeline for new products in the physical security space.”
Asked to elaborate, she said the company has “nothing to share as of yet.”
Lathe said Rhombus plans to allocate the money to research and development to advance its offerings as well as to expand marketing and customer support as the company grows. Rhombus has about 175 employees, most of them in Sacramento. Earlier this month, the company announced that it opened an office in Charlotte, North Carolina, to support its customers on the East Coast.
Over the years, Rhombus has deployed more than 100,000 cameras, sensors and access control devices at more than 30,000 locations worldwide.
The company offers its clients a cloud-based dashboard they can use to monitor physical locations, and that dashboard can be monitored anywhere via a computer or smartphone.
In the research and development area, Rhombus has worked with other artificial intelligence analytics companies for specific uses. For example, Rhombus uses another company’s AI analytics to identify guns in video surveillance. Another company’s AI allows Rhombus audio technology to identify gunshots and other specific noises and phrases.
The $26 million equity raise was co-led by New York-based Tru Arrow Partners and San Francisco-based Cota Capital. Tru Arrow is a new investor, Lathe said.
The loan facility was led by Silicon Valley Bank, a division of First Citizens Bank of Raleigh, North Carolina. Last year, the banking assets of the former Santa Clara-based Silicon Valley Bank were taken over by First Citizens Bancshares Inc. (Nasdaq: FCNCA) of Raleigh.
In October 2021, Rhombus raised a $10 million funding round led by Cota Capital, along with investors MSD Partners, Lemnos and Promus Ventures. That round brought the company to $20 million raised at that time. The new funding brings it to $63 million raised.
