Austin video surveillance company raises $12 million to expand

Aug 8, 2014
Austin American Statesman

As demand for video surveillance in public places continues to grow, Austin-based Pivot3 has raised $12 million to expand its reach in that market

Founded in 2003, Pivot3 sells software and hardware products for video surveillance and desktop virtualization

The company has installed its technology in more than 1,000 locations for industries ranging from corrections and education to government, health care and retail. Customers have included SeaTac International Airport, the Metropolitan Boston Transit Authority, Spec’s liquor stores and more than 65 casinos worldwide

CEO Ron Nash said the company will use the new capital to expand sales, marketing and product development. Pivot3 is currently hiring in those areas

“We have had significant sales growth and this funding round puts us in a position to pursue more opportunities to accelerate new levels of revenue and earnings,” Nash said. The company, which is privately held, does not disclose financial information

Nash said growth is being driven by an increase in the deployment of video surveillance in places that draw visitors. “Airports, transit authorities, shopping malls, warehouses, amusement parks, they are all turning to video surveillance technology,” he said

The lead investor in the deal was Austin-based S3 Ventures, with participation from InterWest Partners and Mesirow Financial. Pivot3 has raised a total of $112 million since its inception

Brian Smith, managing director of S3 Ventures, said his firm is backing Pivot3 because “the company’s growth is impressive, their customer references are excellent and their potential is unlimited.”

Pivot3 was founded in Houston by former Compaq Computer Corp. engineers and moved its headquarters to Austin four years ago

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