Zerv’s $15 Million Funding Round Highlights Access Control Is Undergoing A Digital Revolution
On October 20, 2021, contactless access control platform vendor Zerv closed a $15 million Series A funding round with investment from GreenPoint Partners and Taronga Ventures. Nashville-headquartered Zerv plans to use the investment for product development, expanding its team globally and growing its production capacity. Zerv’s technology helps firms modernize legacy access control readers to communicate with mobile phones, enabling firms to turn traditional locks into smart locks.
The Zerv funding follows a string of VC investment into cloud- and mobile-enabled building security technology. For example, in 2020, cloud-enabled access control vendor Openpath raised $36 million and in 2021, AI-based security platform vendor Alcatraz AI closed a $6 million round. These vendors are targeting the opportunity to bring new enhancements to traditional security systems through innovations such as advanced analytics, biometrics, cloud solutions and mobile apps. Zerv’s solution has been resonating with the market; it reported year-on-year growth over 300% since its inception.
The buildings security market is ripe for a digital revolution. For many decades, firms have managed security using on-premise access control systems, often with local staff manually reviewing CCTV footage after incidents. The sector has lagged in cloud adoption because of buyer reluctance to change solutions and the proprietary nature of traditional building security products. Now, partly propelled by COVID-19, building managers have a growing appetite for modernizing their legacy security systems to enhance occupant experience and benefit from remote management. According to the Verdantix Global Corporate Survey 2021, 42% of facilities executives are evaluating or trialling cloud-based video surveillance.
As the building security market embarks on a digital revolution, vendors should expect buyers to remain cautious with technology adoption. Firms frequently start their security modernization journey with a hybrid approach, using traditional and innovative technology together. For example, firms often seek access control readers that support both legacy swipe cards and new entry methods such as mobile credentials. Next-generation building security vendors looking to benefit from the upcoming wave of investment must have the flexibility to support buyers taking an incremental cloud adoption approach.
For more insights into the latest innovation in the building security market, read our report: Smart Innovators: Building Security Solutions.