Physical Security & Surveillance Startups
The highest individual round sizes in the smart buildings sector. Two startups valued above $5 billion, AI-native platforms replacing legacy CCTV, and drones entering mainstream emergency response.
From Startups in Smart Buildings H1 2026The Funding Picture
Physical security and surveillance startups produce the largest individual funding rounds in the smart buildings sector. While building energy management leads by volume (42% of all rounds), security leads by scale: the five largest individual rounds across all smart building categories in 2025 were security companies. Two — Flock Safety and Verkada — have reached valuations above $5 billion, a threshold no other smart building startup category has yet achieved.
The investment thesis: physical security is undergoing a generational technology transition. Legacy CCTV and alarm systems are being replaced by cloud-native, AI-powered platforms that unify video, access control, sensors, and now drones into integrated systems. Startups that can capture this transition are building large, sticky platforms with recurring SaaS revenue.
Notable Funded Companies
Physical security startups attract capital at a different scale than any other smart building category. Individual funding amounts are sourced from public announcements.
| Company | HQ | Latest Funding | Description | Lead Investors |
|---|---|---|---|---|
| Flock Safety | USA | $275M Series F (Mar 2025); $7.5B valuation → $8.4B (Apr 2026) | License plate recognition cameras, gunshot detection sensors, FlockOS real-time crime centre software. Acquired Aerodome (DFR drones) in Oct 2024. Mission: “eliminate crime.” | Andreessen Horowitz; Greenoaks, Bedrock, Founders Fund |
| Verkada | USA | $200M Series E (Feb 2025); $4.5B → $5.8B valuation (Dec 2025, CapitalG) | Cloud-based physical security platform: cameras, access control, environmental sensors, alarms, workplace, intercoms. Six product lines, 30,000+ customers, 90+ Fortune 500 clients. | General Catalyst, Eclipse (Series E); CapitalG (Dec round) |
| Carbyne | USA | $100M (Jul 2025) | Cloud-native 911 emergency communications. APEX platform: live video, geolocation, translation in 40+ languages. 477% YoY APEX ARR growth. 300 sites across 23 US states and 6 countries. | AT&T Ventures, Axon, Cox Enterprises, Hanaco Growth |
| BRINC | USA | $75M (Apr 2025); $125M (2026, Motorola-led) | Emergency response drones for law enforcement. Integrates with Motorola APX radios, VESTA 911, and Computer-Aided Dispatch. 700+ agencies. Drones launch at the push of a button from 911 calls. | Index Ventures, Motorola Solutions |
| Veesion | France | €38M Series B + €15M non-dilutive = €53M total (May 2025) | AI gesture recognition for retail theft detection. Analyses real-time video to detect suspicious behaviour in stores. Expanding from Europe to the US market. | White Star Capital, Red River West, Bpifrance |
| Lumana | USA | $40M Series A (Jul 2025); $64M total | AI video intelligence using vision language models (VLMs). Transforms existing camera feeds into real-time monitoring and detection. 50,000+ cameras deployed. Customers include McDonald’s, Meta, NYU. | Wing Venture Capital; Norwest, S Capital |
| HiveWatch | USA | $33M Series B (Sep 2025); $65M total | Physical security operations software. AI Operator (powered by Anthropic) handles alarm triage at scale. 90%+ of new contracts include AI Operator. “GSOC of the Future.” | Anthos Capital, Harmonic Growth Partners |
Key Trends in Physical Security Startups
1. AI-Native Platforms Replace Legacy CCTV
The most significant shift in physical security is the transition from passive recording to active AI-powered monitoring. Lumana’s $40 million Series A represents the cutting edge: vision language models (VLMs) that understand video context in natural language, moving beyond the rigid, rule-based analytics of the previous generation. HiveWatch’s AI Operator, powered by Anthropic, automates alarm triage so that human operators handle only genuine threats. And Coram AI ($13.8M Series A, January 2025) applies large language models to video search and analysis. The common thread: AI is making cameras intelligent, not just connected.
2. Drones as First Responders
Drone-as-first-responder (DFR) technology has moved from pilot projects to mainstream deployment. BRINC’s strategic alliance with Motorola Solutions is the landmark deal: BRINC drones integrate directly with Motorola’s VESTA 911 call management, APX radios, and Computer-Aided Dispatch systems. When a 911 call comes in, a drone can launch at the push of a button and provide real-time aerial surveillance before officers arrive. Over 700 agencies already use BRINC drones, and Motorola led a $125 million follow-on round in 2026. Separately, Flock Safety acquired Aerodome in October 2024 for its DFR technology, adding drone capability to its ALPR and gunshot detection platform.
3. Cloud-Native Convergence
Verkada’s growth from startup to $5.8 billion valuation demonstrates the power of cloud-native convergence. The company now offers six product lines — cameras, access control, environmental sensors, alarms, workplace, and intercoms — all managed through a single cloud platform. This “one platform” model is what drives customer stickiness and valuation multiples far above those of traditional security vendors. Carbyne applies the same convergence principle to emergency communications: cloud-native 911 that combines voice, video, geolocation, and AI translation into a single platform replacing legacy PSAP infrastructure.
Physical security is producing the smart buildings sector’s first category of true platform companies. Flock Safety and Verkada are not point-solution startups — they are building comprehensive platforms that span hardware (cameras, sensors, drones) and software (AI analytics, cloud management, dispatch integration). This is why their valuations ($7.5B and $5.8B respectively) dwarf those of startups in other categories.
The Motorola Solutions factor deserves attention. Motorola’s investments in BRINC ($75M, then $125M lead), combined with its $4.4 billion acquisition of Silvus Technologies and its acquisition of Blue Eye for AI remote monitoring, signal that the $8.5 billion public safety giant is building an integrated hardware + software + AI + drone ecosystem through a combination of acquisitions and strategic investments. This is the model Flock Safety is also pursuing organically.
The risk: privacy and regulatory scrutiny. Flock Safety’s license plate recognition network and Verkada’s ubiquitous cloud cameras attract attention from privacy advocates and regulators. How these companies navigate that tension will determine whether their growth trajectory sustains.
Want the full startup landscape?
Memoori’s H1 2026 report tracks over 1,400 startups across all smart building categories, with complete funding round data, acquisition tracking, and technology category analysis.
Notable Acquisitions in Physical Security
The physical security startup space is consolidating rapidly, with large strategic acquirers absorbing startup technology to build integrated platforms:
These acquisitions are part of a broader consolidation trend: Memoori recorded 98 startup acquisitions across the entire smart buildings sector in 2025, a 75% increase over 2024. Physical security is one of the most active categories for M&A activity. See our dedicated analysis of the smart building M&A wave.
Track the Full Security Startup Landscape
This page highlights the most notable deals. Memoori’s report covers the complete picture: every funding round, every acquisition, every category — across 1,400+ startups and $55B+ in cumulative investment over the last decade.
Startups in Smart Buildings H1 2026Frequently Asked Questions
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Methodology: This analysis draws on Memoori’s Startups in Smart Buildings H1 2026. Memoori defines a startup as a private company formed no earlier than 2014 that is focused on the commercial and industrial buildings market, is not a subsidiary or acquisition of a larger company, and is often financed by venture capital or private equity funding. Individual funding round amounts, dates, and valuations are sourced from public announcements, press releases, and verified databases. Category classifications are Memoori’s proprietary taxonomy. Memoori does not accept payment for inclusion or ranking.
