Safety & Security

The Safety & Security sector is relatively young and offers an attractive investment opportunity as new technologies meet the post 9/11 demand for security and efficiency through new applications, integrated solutions, intelligence gathering, data sharing, and analysis. Significant federal funding exists for the implementation of these new technologies.

Security Industry Market Dynamics

• Highly fragmented industry (greater than $150B)
• National policy continues to support growth (Counter-terrorism, Intelligence & Warning two of the fastest growing
  vertical sub-sectors in the US over the last decade)
• The need to integrate Security into business operations
• International reliance by American businesses
• Current technology and tools does not meet the needs
• Lack of defined business models
• Concerns over privacy and civil liberties
• Market growth driven by continuing government spending and expanding private sector demand
  

Public Safety Market Trends

• Evolving buying criteria (looking beyond local jurisdiction)
• Interoperability – multi agency, multi jurisdiction
• Movement from premise to SaaS solutions
• Platform vs. component RFP’s (looking beyond local jurisdiction)
• Data management and integrity
• Grant program mechanics
• New vendor / technology certification & deployment
• Public/Private sector information exchange
• Fractured supplier market to state & local government
• Mobility solutions

Security Market Landscape

Integrated Systems for Information Management & Analysis	Intelligence, criminal justice data Law enforcement/first responder information-sharing, RMS, CAD, GPS Integrated audio/video and biometric Common Operating Picture
Sensors, Detection & Surveillance Systems	Physical infrastructure protection (i.e., monitoring and access technologies) Port security (and other transportation) technology, products and services Audio/Video detection and threat analysis
Identity Verification and Tracking	Biometric - capture, analysis, storage Smart cards, secure identity documents Access control
Other Security Products & Services	Physical Plant & other Hardware security solutions Investigations Compliance and "Whistle Blowing"

Security Sector Investment Criteria

• Growth oriented private companies in Security, Safety and Homeland Security
• SaaS, predictable/recurring revenue model
• Sustainable competitive advantage in technology or distribution
• Referenceable customers
• Minimum $1M EBITDA
• Scalable technology and organization support
• Platform vs. component play
• Public and private sector business opportunity = sell to both enterprises and government
• Focused, targeted solutions (not one size fits all plays)
• Ability to take leadership position or meaningful market share
• Unencumbered technology (3rd party apps, IP, patents)