2 Comments

Summary:

A smart home IPO! Control4 will start trading on Friday under the symbol CTRL, and has priced its shares at the midpoint of its range.

Image (1) control4image.jpg for post 75692

Decade-old smart home startup Control4 has priced shares for its imminent IPO at the midpoint of its expected range, and the company will start trading on Friday, Control4 announced late Thursday. Control4 is selling 4 million shares at $16 per share, which raises $64 million, and the company will start trading on the Nasdaq under the symbol CTRL.

Sixteen dollars is the midpoint of the company’s range of $15 to $17 per share. Control4 says underwriters can also purchase up to an additional 600,000 shares at the IPO price.

Control4 makes software that connects home devices and appliances including lights, door locks, video cameras, and security systems. The company said in its filing that it’s connected 120,000 homes with its smart software, and generated $109.5 million in revenue in 2012, with a net loss of $3.7 million for 2012. The company has yet to turn a profit and had a deficit of $107.1 million as of March 31, 2013.

The market for smart home, connected devices has been growing over the past few years. That growth has been enabled by home Wi-Fi networks and smart phones, which have led to consumers looking to control their entertainment, media and other connected devices with smart phones. Bandwidth to homes is also now high enough to enable many home owners to do things like remotely check video camera streams from a mobile phone.

Younger companies like Control4, Nest, and AlertMe have emerged, while service providers like cable companies and telcos have been launching smart home services, too.

The energy side of the equation — working with utilities — has been a bit harder to tap into from some of the startups. Utilities have very long deployment cycles and are pretty cautious. Control4 revealed in its S1 filing a few months back that it has discontinued its energy product line for utilities, which it launched a few years ago. PG&E had been piloting some of its utility home energy products.

Foundation Capital owned 28.5 percent of shares before the IPO; Thomas Weisel Venture Partners owned 16.4 percent; Signal Peak Ventures owned 12.7 percent; Frazier Technology Ventures owned 12.3 percent; Cisco Systems owned 10.8 percent. This will be the second smart grid-style startup to go public out of Foundation Capital’s portfolio (it backed Silver Spring Networks, too).

  1. This is a very good sign for clean tech investor’s psyche.

    The evolution and traction pivots that Control4 has taken over 10 years shows the patience required for investments in clean tech.

    What is becoming clearer is that the winners in the clean tech space are increasingly playing to the consumer market.

    Share
  2. As a professional electrician with twentyyears in the buisness, I have to say the switches used in this system are of inferior physical quality. Human hands, however adept, invariably will abuse this product. The outer retention bracket that sustains a rocking touch plate is such a cheap idea that a $129 pricetag cannot be justified. I suggest you investigate these systems from their physical charecteristics.

    Share

Comments have been disabled for this post