Security technology startup Verkada has achieved a $5.8 billion valuation following a new funding round led by CapitalG, Alphabet’s venture capital arm, the company announced Wednesday.
CEO Filip Kaliszan told CNBC’s Deirdre Bosa, “I think Google saw the opportunity with us in the application of AI and everything we’re driving to apply AI to the physical security industry.”
The company said the CapitalG-led investment will enhance its artificial intelligence capabilities and provide liquidity for the business.
A person familiar with the terms of the funding told CNBC that the financing totaled $100 million, increasing Verkada’s valuation by $1.3 billion from its Series E funding in February.
CapitalG has recently invested in cybersecurity startup Armis, contributing to a $435 million fundraise in November.
Verkada now serves more than 30,000 customers globally and has surpassed $1 billion in annualized bookings.
The company develops cloud-based physical security solutions, including cameras, alarms, and sensors, which integrate into a single software platform.
Kaliszan highlighted the variety of sectors served by Verkada, including retail, government buildings, schools, and transportation hubs.
He cited TeraWatt Infrastructure, which provides EV charging sites for Google’s Waymo, as an example of a client using Verkada technology to secure their facilities.
In September, Verkada introduced more than 60 new AI features, including the “AI-Powered Unified Timeline,” designed to synthesize videos and images from multiple cameras into one comprehensive visual timeline.
“The genius of Filip and the team of Verkada is that they’re leveraging AI as a Rosetta Stone to really help unlock insights from cameras to help companies become safer and more efficient,” said CapitalG general partner Derek Zanutto.
By analyzing over 20 million images per hour, Verkada’s platform can track foot traffic, occupancy rates, security violations, and other operational trends.
Zanutto described the physical security sector as a $60 billion market still dominated by legacy hardware, such as traditional recording cameras, and said Verkada aims to fill the gap with AI-powered solutions.
Kaliszan stressed that AI will complement, not replace, human security staff.
“I think humans will be providing security to other humans for as long as I can think,” he said.
“But AI can empower these first responders to be more aware, to have situational knowledge, to know what to do, and in some cases, actually prevent the problems from happening.”
He referenced the October Louvre heist, where crown jewels were stolen, noting that AI-enabled devices could alert security in real time and potentially prevent incidents.
“If you could intervene right then, if you could know in real time that that’s happening, the potential for savings and preventing damage is tremendous,” Kaliszan said.
