That Radio Frequency Identification Card (RFID) that everyone carries in every modern office building can be copied, from a few feet away, without it ever coming out of a pocket or bag. That means that your sophisticated RFID card is less secure than a regular old metal key--at least no one can copy your key when it’s in your pocket.
Companies around the world know this, but have limited ability to do anything about it. They try to put guards up in lobbies, with two basic functions:
Even the most sophisticated companies on the planet are stuck with this terrible security, and they come up with crazy ways to try to make it better. When our Founder/CEO was at Google they had the “Tailgator”, a guy dressed up in an alligator suit who would try to walk in behind you (“tailgate”) when you badged in. At the weekly all-hands meeting, security would play the video of everyone who let in the Tailgator this week. A very low tech solution from a high tech company.
Cloudastructure centralizes the management of access control with video monitoring and allows customers to scale geographically to multiple locations. The Cloudastructure solution delivers the intelligence online while it puts the data safely offsite.
We index all the objects and faces in the video, just like Google indexed the web. This means you can search through all your videos by tag: person, animal, vehicle, etc. and even individual faces -- just like you can search the web. Instantly see all the video with the object you’re looking for in it. For example, here is all the video, by hour, with people in it: the higher the bar the more video of people:
The future is more intelligent. Because we manage the door system, we know who badged in where and when. This means that when you swipe your badge we see your face. From real cameras under actual lighting conditions. We are constantly training the system to know what badge holders look like, even as they change makeup, facial hair, glasses, etc. over days, months or years. We can match faces to badges more accurately than any guard.
Moreover, again because we manage both doors and cameras, we know when someone badged in, when the door opened, any more badge swipes, and when the door closed. If we see on camera someone following someone in through a door, without swiping a badge, we will detect that as a tailgating event. Better than a guy in an alligator suit.
How it works:
In order to perform these AI features, the information first needs to be in the Cloud. Cloudastructure is doing what Dropbox did for files and Salesforce did for CRM: moving the data to the cloud. As opposed to having data located at the site being secured, security data is stored online and can be accessed from anywhere, and is not at risk itself.
Every company used to have an IT closet full of servers. Those servers have been moving to the cloud, and making these new SaaS providers billions of dollars in the process. Every building of every company has two servers still left in that closet: access control and video surveillance. Cloudastructure is moving these last two to the cloud. Once the data is in the cloud, we can perform our AI functions.
Cloudastructure also offers a variety of artificial intelligence features not found in traditional systems.
We've gotten to $10,000 monthly recurring revenue. We not only have a low churn rate at less than 5%, but we’re also gaining many new customers thanks to referrals.
“With Cloudastructure we no longer have to run on-premises web servers. There are no holes in our firewall or port forwarding in our router. There is no reason why your physical security should weaken your digital security, but that’s exactly what our last system from a major manufacturer did”.
“Watching hours and hours of video to find the event we’re looking for is no longer a thing. We just search by tag and get the video we need right away. Video Surveillance is useful again!”
We found that we can compete with the incumbents by pricing by the door and camera per year. We make more recurring revenue than they do while still providing a lower TCO (Total Cost of Ownership) to our customers. However, we believe our higher level AI features will allow us to achieve security guard level pricing -- which is much higher than what we charge now. We intend to benefit from this price elasticity.
The Cloudastructure hardware utilizes state of the art technology, delivered at a very competitive price that beats the industry standards and comes with zero maintenance or replacement costs with a lifetime warranty. Cloudastructure solution centralizes the management of access control with video monitoring and allows customers to scale geographically to multiple locations.
We are using Access Control and Video Surveillance to perform many Manned Guarding duties better than humans can--nearly ⅓ of the $205B security market is addressable by us.
Other notable investors include Ralph Eschenbach and Eric Chen.
Rick Bentley - Founder, Chief Executive Officer
Rick Bentley has over 20 years of Silicon Valley startup and technology experience. He was founder and CEO of Televoke Inc. (became deCarta, bought by Uber) where he raised eight figures of Venture Capital from VC’s including Softbank and WI Harper. Mr. Bentley has been a full time Advisor to Google X. He was a direct report to Andy Grove for half a decade. Investors have brought him in for interim-CEO roles at early stage companies. He was a Senior Consultant at Bearing Point Inc., which included two assignments in Baghdad. At General Magic he managed the “Portico” program, derivatives of which served over a million subscribers. He was Director of Business Development for Machina, a design and engineering house that developed consumer electronics products, some of which sold over 10MM units. He was also Director of Product Development for Sensory Inc, which at one point had the largest installed base of speech recognition systems in the world. Mr. Bentley is the author of multiple patents and patent filings, many of which were bought by Samsung in 2014. He received his BA in Physics and MS in Engineering from UC Berkeley.
Gregory Rayzman - Technology Advisor
Seasoned technologist and well recognized name in Silicon Valley. His expertise in Big Data and database architecture is sought by several emerging and well established companies like Apple, where he provided pivotal leadership in designing and developing massively scalable and database backed infrastructures. Most recently, Mr. Rayzman had a great stint at TheFind shopping search engine with relevancy and popularity algorithm instead of the ordinary pay-for-placement. TheFind was acquired by Facebook in 2015. Prior to that, as Chief architect of a forward-looking company NebuAd, in 2007 he developed behavior targeting advertising systems based on the aggregate data, which everyone from Google and Yahoo to Facebook and Plaxo is looking into only now – for better targeted, more relevant advertising. He was previously a founding engineer and Chief architect for ITM Software, acquired by BMC. Mr. Rayzman also served as CTO for Claridyne Inc., an IT infrastructure and integration company. Mr. Rayzman was founding engineer and Director of Software Engineering for Annuncio Inc., acquired by PeopleSoft (now Oracle).
Craig Johnson - Vice President, Sales
Over 20 years of experience in a variety of Sales, Sales Management, Marketing, Operations, and General Management positions with his last assignment being COO of a digital signage startup. Prior to that he was a Honeywell General Manager, running a 100+ person organization with $27m in revenues, that consulted, sold, installed, and maintained HVAC systems, Fire Alarm, and Security systems in large, commercial buildings. Mr. Johnson also has extensive experience in the marketing and sales of electronic components to OEM and Distributor channels, both through direct salesforces and independent rep organizations. At the customer enterprise level, Mr. Johnson managed the sales and service teams for process automation platforms that monitor and control refineries, power generation plants, and manufacturing sites. He is Six Sigma certified and served as a Reserve Officer in the Armed Forces.
The smallest investment amount that Cloudastructure is accepting.
Cloudastructure needs to reach their minimum funding goal before
the deadline. If they don’t, all investments will be refunded.
The Crowd SAFE is an agreement for future equity in the startup,
meaning that it can convert to equity in the future.
The Crowd SAFE is an agreement for future equity in the startup, meaning that it can convert to equity in the future.
$25,000 – $1,070,000
Cloudastructure needs to raise
before the deadline. The maximum amount Cloudastructure is willing
to raise is $1.07M.
There is an enormous market opportunity for cloud-based video surveillance & access control. The founders of Cloudastructure know what it takes to run a successful startup. They will make Cloudastructure a tremendous success.
Cloudastructure has taken an old system, beefed it up with new technology and removed the failure point out of the IT closet. And I love the founder! Rick has the background, experience and passion that I love to see. All the best Cloudastructure!
Cloudastructure's statement is bold and addressing a core weakness of in the current security domain. They certainly have a booming market and as long as they have a viable plan and execute with determination, I believe they will be quite successful.
It's a reflective window sticker that says:
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your image has already
been recorded and
Keeps the bad guys away!
We are using Republic's Crowd SAFE security. Learn how this translates into a return on investment here.
Tim Draper: So welcome to Meet The Drapers. Give us your pitch.
Rick Bentley: Hi, I'm Rick Bentley, CEO and co-founder of Cloudastructure. We're bringing artificial intelligence to building security. First thing we do is we get all the video surveillance data offsite into our cloud, along with all the access-controlled data. When you swipe your badge and the door opens. Once it's up there, we do some pretty neat things. When we take all the data, we run it through an indexer. Now you can search for a person, vehicle, whatever. Because we have your badge data, when you badge in, we see your face. Badge in, see your face. Badge in, saw both your faces. You went to lunch together. Badge in, see your face. By the end of the first week, we know what you look like. If I show up with your badge that I found at a bar, it could either flag it or not let me in, depending on your business rules.
Bill Draper: This isn't for everybody. It's for people who carry a badge.
Rick Bentley: Yeah, it's very enterprise.
Tim Draper: Why would an enterprise because concerned with this?
Rick Bentley: When I was at Google, we had a guy called the tailgate. He wore an alligator outfit. He'd walk around when you badge in. He'd try walking behind you dressed as an alligator. At the Friday all hands meeting, they showed the video of everyone who let in the alligator that week. This is a constant penetration assessment from competitors, foreign governments, everything, right? They have stuff that's important they need to keep secure. Plus, the safety of their employees and everything else.
Adam Draper: So you're solving the alligator problem.
Rick Bentley: We're solving the alligator problem, right. No more alligators.
Adam Draper: Where's the product today? Do you have customers?
Rick Bentley: Yeah. So we're doing $10000 a month recurring revenue, a little more actually. We have the cloud level working. We're just now rolling out the AI features.
Tim Draper: I see what the AI features are about. What's the cloud piece of this, without the AI.
Rick Bentley: Think of it this way. Look at the IT server closet. It's gone. There used to be an email server. It's now a Gmail or Outlook or Outlook 365 or whatever. There used to be a file server. It's not Dropbox or Box. The first thing we had to do is get the video surveillance server and the access-control server into the cloud where they belong also. Once it's there, you can do this high level stuff that you couldn't afford to do computationally on premise.
Adam Draper: And are they your cameras?
Rick Bentley: No, we work with any camera. The largest universities in California has hundreds of cameras that are in our cloud. So, if you have 100 cameras, how long does it take you to review a day of video? It's like a [inaudible 00:19:17]. But once it's all indexed, I'm looking for-
Tim Draper: It's actually a man, third of a year. 365 cameras.
Rick Bentley: Right, but if it's 24 hours and you have 8-hour days.
Tim Draper: Oh oh okay.
Rick Bentley: Plus weekends. Entrepreneurs have to go to the bathroom and eat.
Tim Draper: That's right.
Rick Bentley: So it's a lot. It's overwhelming. So once it's indexed, whatever I'm looking for I can find. That guy spray painting the building went to lunch with Adam a week ago. Adam, who's this guy?
Adam Draper: Why are they so mad at you?
Bill Draper: Okay, who is interested in this? Who wants to hire you to do this.
Rick Bentley: We're finding traction kind of in three areas. Education, utilities, and enterprise. So software companies in the Bay Area.
Bill Draper: Take the University of California. Why do they want it?
Rick Bentley: In this particular case, a large university customer who I'm not naming jumped in and said, something happens. There's a slip and fall. There's a fight. There's a car crash. We go to get the video. The thing's been offline for two weeks. They can send us an email that this disk is full. They can't send us an email if it crashes or gets unplugged. It's just impossible to manage. Once you pull out into the cloud, it's a one-stop-shop. Here's my dashboard, how everything's doing.
Adam Draper: How much do you get paid?
Rick Bentley: So we charge $249 per year per camera, and $199 per year per door. It's enterprise [inaudible 00:20:29].
Adam Draper: And what's your experience?
Rick Bentley: My background is Physics Engineering from UC Berkeley. I was at General Magic.
Tim Draper: General Magic.
Rick Bentley: Yeah.
Tim Draper: Just raised a ton of money.
Rick Bentley: Oh was that fun?
Tim Draper: They are, I bet you had fun while you were there. Why did you leave General Magic, and where'd you go from there?
Rick Bentley: I started TeleVoke. TeleVoke was connecting people to things in 1998 before there was an "Internet of Things."
Tim Draper: And what happened to that business?
Rick Bentley: We pitched the Drapers back them. This is actually the second time we met.
Tim Draper: You did look familiar.
Rick Bentley: Yeah, right?
Bill Draper: And we decided not to do it?
Rick Bentley: You decided not to invest.
Bill Draper: How did we make that ...?
Tim Draper: Did we make-, wait, wait. Let's find out what happened. Did the investors make money on that one?
Rick Bentley: Some did. Some didn't. Remember, we closed our first financing in January 2000. We got offered to get bought by Ford for $20 million when I only had 3 in the door. We took the offer and then the Ford CFO shut down anything that was not profitable. So it kind of pulled the rug out from underneath our deal. So then we merged another privately held company and changed the name to Dakarta. Dakarta got bought by Uber after a long fuse for $215.
Bill Draper: You had other outside investors?
Rick Bentley: Yeah. So that was Saufbank, WBI Harper-
Bill Draper: And how much did they make on their return?
Rick Bentley: Depends which round. So the last round was the money round. The down round's the money round isn't that the saying?
Adam Draper: Why are you excited about this?
Rick Bentley: It has to happen. Video needs to be indexed or it's not useful. The guy at the front desk, when you badge in, he's making sure your face matches your badge. Doesn't matter if you're 5'6 or 6'4, right? Your picture comes up and that's it. He lets you through. I can use your badge. You can use my badge. I can use your badge. You can use my badge. We could badge in and out.
Adam Draper: Oh, no he's got big eyebrows.
Tim Draper: Eyebrow.
Rick Bentley: I could do a little pre [inaudible 00:22:11] makeup.
Adam Draper: [inaudible 00:22:11]
Rick Bentley: There's a video on our homepage of me breaking into Google, Facebook and Palantir because I have a messenger bag with a card reader in it. And I can just walk past you just because we are in this meeting together on the elevator, at the coffee shop in the line at Starbucks. I can read your badge. I know how your badge is a unique ID. I can put that in another badge. I can badge in as you. It is criminally insecure. If you'd like, I'll break in here tonight and leave my business card on your office door.
Tim Draper: Probably wouldn't be too tough.
Adam Draper: That wouldn't do you any technology. We've got a lot of alligators.
Tim Draper: Did you write the software?
Rick Bentley: No, I didn't write this software.
Tim Draper: It connects all the ...
Rick Bentley: My background is technical, but I'm the fundraiser, the sales guy.
Tim Draper: Who's written this?
Rick Bentley: We have a team of about a half dozen of us.
Tim Draper: And they're full time with the company or they're doing other things too?
Rick Bentley: I mean, my Ethereum is a hobby so we're all doing something on the side. Like, everyone around here I think. But yeah, this is a full time team.
Tim Draper: Well, great. Well, thank you so much for coming to Meet The Drapers.
Rick Bentley: Thanks, real pleasure.
Tim Draper: Terrific, yeah. Nice to see you.
Rick Bentley: Real pleasure. Great to see you again.
Rick Bentley: I have so much more to say. I got more demos. I got a product I can show. I could have been in there for two hours having a great time. We're bringing AI to something that every enterprise has. How many businesses have doors? They all do. They all need security. We provide what's- We're providing them the future. What's happening next is going to be the building is smarter and knows what's going on. I challenged I'd break in tonight and leave my card behind, so maybe I'll actually do it.
Tim Draper: So let's see what our judges thought of Cloudastructure.
Adam Draper: I think he wants to win. He wants to hustle. He's had one reasonable small exit.
Bill Draper: He's obviously an entrepreneur.
Adam Draper: Good salesman.
Bill Draper: In a lot of ways.
Tim Draper: That's what I ...
Adam Draper: Good salesman.
Tim Draper: Good salesman, and I lose a lot of money on good salespeople.
Adam Draper: Enterprise, though. He's got-
Tim Draper: Yeah, that's true.
Adam Draper: Huge deals.
Tim Draper: If you are an enterprise, the good salespeople are extraordinarily valuable.
Bill Draper: It's more than that. I think he really was a good overall entrepreneur.
Tim Draper: He was upset that we didn't back him, but then we would have lost our money. We were early.
Bill Draper: That's what he said.
Tim Draper: We were early. We weren't last investor. So I was thinking, you were upset but ... we would have been really upset.
Bill Draper: That's the only problem that I've got with it. That I have a feeling that he may not be a steady follow through, get this job done right and make sure and make money for everybody.
Tim Draper: I'm concerned about the market, too. I think it is really interesting. This is a great use of artificial intelligence and putting different things together, but people don't like spending on security. That is a real struggle because people don't even want to think about it, and then they think about it when something happens.
Bill Draper: Yeah, but think of big institutions.
Tim Draper: Yeah, you're sort of -
Bill Draper: I mean, they have somebody that is just in charge of security.
Tim Draper: Yeah, the big institutions move really slowly. It'd sink his business.
Adam Draper: But they also have a huge bucket of money that is geared towards security. So he knows where that pot of money is that he would be selling to.
Tim Draper: That's right.
Adam Draper: He knows. He knows exactly. He'll find it.
Bill Draper: I would back him.
Tim Draper: Okay, well let's find out what the crystal ball thinks. Eenie, beenie, crystal ball, tell us. Do we want Cloudastructure? I got it. Okay, thumbs up. Thumbs down. Thumbs down all around. Two up, one down. This is our thing. We have two up, one down each time.
Adam Draper: We should never do the deal if we all do thumbs up.
Tim Draper: Yeah, probably not. Probably not. But it's not up to us it's up to you, the viewers. Go to MeetTheDrapers.com and you can vote and invest. This is the only show in the world ever that allows you to invest in the companies that you see us interview while on Meet The Drapers. So this is awesome, and go ahead. Give it a shot. So let's bring on the next entrepreneur but before we do, let's see what's going on behind the scenes. And the eyebrows are genetic, apparently.
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