Canary is a smart home security device that provides an alternative to high-priced security systems, which allows renters and those who don't want to invest in a large scale system to provide security and protection for their home at an affordable price. Canary was founded by experts with backgrounds in security, robotics, software and design, and is available for purchase at major electronics retailers. The device contains an HD video camera and sensors that are able to track regular occurrences in the home, such as temperature and air quality, vibration, sound, and movement. Users can control and access their device directly from their smartphone.
Zirra Rated Canary
Business & Marketing Strategy: Canary's big target market are those who want to protect their home but either cannot afford big alarm systems, or those who may be able to afford them but don't want to invest in them because they are renting a home. This is a niche that hasn't yet been addressed in a marketplace dominated by big players such as ADT, Frontpoint, ProtectionOne and Vivint. Another main distinguishing factor is that Canary has chosen to sell through general home electronics stores and online, using partnerships with Amazon, Best Buy, Verizon and Home Depot to stream their product directly to the customer in an easy fashion with no need for appointments or installations. Canary has mentioned forming further partnerships with more retail stores and has recently expanded to include Germany, Austria, France and Switzerland while also expanding product features. They currently make money through several different revenue streams, including the sale of the device itself, as well as subscription and membership fees, for access to things such as extra features, home insurance and more video download capability. The company is also interested in adding third party monitoring solutions, from which they will take a cut of the proceeds.
Competitive Position: Canary seems to be on the right track but the company faces a lot of competition in a heavily laden market. There are many similar products on the market comparable to Canary, and some offer more features while Canary, as a general rule, has been cited by users as being more expensive than their competition. To date, Canary, founded in 2012 has received $41.2 million in funding, while Alarm.com, founded in 2000, has already received $163 million, has made three acquisitions and went public in June 2015. Other competitors include Y-Cam Solutions, a British company founded in 2007 that is self-funded, Butterfleye, founded in 2013, which has raised $1.94 million, iSmartAlarm, founded in 2011, and so far self funded, and blink, a 2009 company with $5.8 million in funding. Scout, founded in 2012, has raised $2.5 million, SimpliSafe has raised a total of $57 million since their 2006 debut and Piper, founded in 2012, has yet to receive funding. Canary also faces competition from Angee, a 2014 company with $531k in crowdsourced funding, Nest Cam, founded in 2015, with no current funding, and Netatmo, founded in 2011, which has raised $38.67 million. Indirect Competition also comes from regular home security systems such as ADT.
Market Forecast & Exit Indicators: The market for home security solutions is growing thanks in large parts to the increase in instances of safety concerns and the need for security measures by residential homes. A recent study by CONTEXT found that consumers in Europe’s five largest markets are increasingly ‘worried’ about their home when they are not there. According to Markets & Markets the Home security solutions market is expected to reach $47,542.52 Million by 2020, at a CAGR of 8.7%. This is a huge leap from the $28,318.69 value of the market in 2014. Experts believe that security cameras will account for the largest market share of the industry. Reality Today believes that wireless security will still be the top choice when it comes to security features for homes and that video technology will also constitute one of the most common trends in the home security market. Factors that affect the market in a positive way include the rise in awareness levels among consumers and increased adoption of new technology for home security which would gradually culminate in the cost reduction of the solution, driving the market further. Possible negatives that will need to be addressed include software glitches, connectivity issues, radio or electrical interference and non-compatibility issues among other things. The market potential is wide open to convert many new users. While 82% of those surveyed admitted to thinking about installing or committing to a security system, currently, according to the EU Crime Prevention Monitor, only an average of ten percent of homes across Europe and 45% of homes in the US have some form of security alarm or system.
Founder & Executive Profiles: Canary has three co-founders. Adam Sager is the Co-Founder & CEO. Adam has extensive experience in both running a successful company as well as in the security sector. Prior to founding Canary, he was the Founder and Chairman of Community Security Service for nearly ten years and was a Practice Leader in Security Risk Consulting for Control Risks for four years. He was also a partner in The Shearwater Group. Jon Troutman, Co-Founder & Chief Design Officer has a strong history in design that lends itself well to formulating a good product. He was previously an Art Director for Kill Screen Magazine and DISTINC, after which he spent six years as a Freelance designer before becoming Lead Product Designer for General Assemb.ly. Co-Founder & CTO Chris Rill has both software and leadership experience. Prior to Canary he was a Senior Software Engineering Consultant for RockStar Games and Honest and worked as a software engineer for many years. He was previously the Co-Founder of Farehelper.
Inside Scoops: Just recently Canary launched its new product, Flex, which is an outdoor version of their security system. This new version of the Canary is weatherproof and portable and uses a rechargeable battery that can last for months. In addition, Canary has reworked their subscription offerings and narrowed it down to only one plan for all users, at a rate that is now lower than many competitor rates. In addition, Canary recently signed a partnership deal with Verizon that will allow them to provide services to homes without Wi-Fi using an LTE connection. This new partnership will help Canary broaden their market even further.