By Krystal Hu
Flock Safety, a U.S. startup developing surveillance technology, has raised $275 million in new funding led by Andreessen Horowitz, as it invests in a manufacturing facility and expands into drone products, the company told Reuters.
The investment values Flock Safety at $7.5 billion, up from $4.8 billion in its previous funding round last year. It brings the Atlanta-based startup's total funding to over $950 million, according to PitchBook data, making it one of the most well-funded startups in the region.
The funding marks Andreessen Horowitz's third investment in Flock, an unusual move for the venture capital firm. Greenoaks Capital and Bedrock Capital also participated in the round.
Flock, which sells security cameras and software to help police and businesses tackle crime, said it had surpassed $300 million in annual recurring revenue, a 70% year-over-year increase.
The company added Brandon Simins as its CFO this year, as it readies for an eventual public listing, although the company doesn't have a specific timeline.
Flock plans to launch U.S.-manufactured drones in 2025, as it builds out a 100,000-square-foot manufacturing facility in Georgia.
"I'm excited to bring more manufacturing in the U.S., which will give us more control over our supply chain and help with our mission to eliminate crime," Flock CEO Garrett Langley said in an interview.
Founded in 2017, the company says its surveillance system uses artificial intelligence to provide insights to aid investigations, such as identifying car plates.
It now serves over 4,800 law enforcement agencies and nearly 1,000 businesses across major retailers and healthcare systems. Enterprise businesses account for about 30% of its revenue.
Funding startups that sell to law enforcement is not very common for Silicon Valley investors. David George, general partner at Andreessen Horowitz, said Flock's growth in the past few years had proved the size of the market.
"Flock Safety has one of the most compelling ROI (return on investment) equations to law enforcement that we've ever seen in software or hardware markets, in that they solve crime. Their ability to penetrate many police departments and have a very high market share can create a venture-scale outcome," said George.
(Reporting by Krystal Hu; Editing by Mark Potter)