One of the biggest challenges for startups is funding. Getting the initial investment, maintaining a livable cash flow, earning revenue, and ensuring resource needs are met, are all hurdles any young entrepreneur or company faces.
Knowing this, one of the world’s largest security products and solutions providers, Tyco Security Products (TSP), announced a plan to help accelerate the innovation process that can be good news for startups. This idea stems from TSP’s current program which facilitated their successful investment in companies like Qolsys, Exaqc and Visonic. However the problem with the current system is how time consuming it is, and TSP managers are looking for a way to use their might as a big industry player to find great ideas to invest in, as well as help to grow.
As a solution, Tyco Security Products announced they want to invest in tech startups with the vision to “create more of a pulse” in the industry. Anita Santos, VP of marketing at TSP, explains that TSP is interested in, “taking a step out of process,” as a means to, “help innovators and entrepreneurs.” This is great news for startups, and even more so as Santos went on to explain TSP is even interested in companies that haven’t generated revenue yet.
So then what specific kinds of startups is TSP interested in investing in? Santos stated in retort to this question, “We look at a wide range of possibilities,” adding that the start-up may only have a concept or even IP around that concept, leading us to believe TSP is looking for new ideas as well as somewhat established startups.
According to the program behind this, TSP’s InnovationWorks, “the goal is to continue to innovate and grow.” With regard to the companies they are looking for they state, “Whether you are at an early stage in your growth or an established global presence, Tyco would like to talk. We are driving invention and evolution in the Internet of Things (IOT), connected home security and automation and the delivery of service based video and access control solutions globally.”
This truly opens the door to a wide range of companies, especially those in the security and alarm industries. As we have stated previously, 2015 promises to be a huge year for technology in the security industry, and this news only reinforces the idea that the role in tech is going to be an important one in the evolution of the industry.
While investing in great ideas provides a clear benefit for Tyco and the security industry at large, what benefit is there for working with Tyco? Santos responded to this question stating, “Any private equity investor can[show a small company] how to manage a business from an operational standpoint, but when you have an equity partner like Tyco, what you get is market expertise which is very valuable [as well as a] strong channel to market for smaller players.”
Learn more about the program at InnovationWorks website.