Afero Raises $50M Series C for IoT Security Platform

The Expanding IoT Landscape and Afero's Funding

As the Samsara IPO approaches its pricing stage, it presents an opportune time to examine the broader IoT (Internet of Things) market in greater detail.

The significance of this market extends beyond the public offering of a single company.

Afero Secures $50 Million in Series C Funding

Afero recently finalized a $50 million Series C funding round, spearheaded by Crosspoint Capital Partners.

This latest capital injection represents an amount comparable to all previous funding received by Afero, according to Crunchbase data.

Consequently, the startup currently possesses a stronger cash position than it has at any previous time in its history.

Insights from Afero and Crosspoint

Following a realization of the substantial growth achieved by Samsara’s IoT-centered operations, TechCrunch engaged with Afero CEO Joe Britt and Crosspoint’s Hugh Thompson.

The discussion centered on the company’s operations and the rationale behind selecting this particular moment for a funding raise.

The aim was to gain a deeper understanding of the current market dynamics and Afero’s strategic positioning within it.

This funding round underscores the increasing investor confidence in the potential of the IoT sector.

Understanding Afero's Functionality

According to Per Britt, the Afero team recognized forecasts predicting a tenfold increase in the global number of connected devices during the platform's development.

Anticipating this substantial growth in connected devices, sensors, and related technologies, Afero’s IoT platform was specifically designed with robust security measures. This focus on security was deliberate, as Britt points out that initial web development didn't prioritize security, resulting in ongoing vulnerabilities and security breaches.

As we increasingly integrate our personal and professional lives with the internet, security becomes paramount. Without it, even everyday objects like toasters or critical industrial processes could be compromised.

Thompson, leveraging his expertise in security, highlighted the significance of this approach as a key factor in his investment decision. He described Afero as “rare” for having “built things right [in security terms] from the very beginning.” (Insights from TechCrunch’s Zack Whittaker have reinforced my understanding of the frequent compromises experienced by large organizations, strengthening the case for a security-first development philosophy.)

Key Features of the Afero Platform

Afero’s IoT platform provides a comprehensive software development toolkit (SDK), enabling client companies to create mobile applications. Furthermore, the platform is adaptable, allowing for customization to meet specific customer requirements.

The company collaborates with major retailers, such as Home Depot, to introduce connected devices to markets like the smart home sector. Britt and Thompson also explained that the platform can manage offline assets, like tagged physical products, to enhance supply chain tracking.

The Rationale Behind Afero’s Recent Funding

Among the startups that have secured Series C funding, Afero distinguishes itself with a remarkably lean team of only 24 full-time employees. The newly acquired capital will undoubtedly facilitate expansion of the workforce. Furthermore, the company intends to allocate resources towards strengthening its market approach, including increased investment in marketing and sales initiatives.

When questioned by TechCrunch regarding the current extent of Afero’s market presence, the CEO refrained from providing a precise figure. After attempting to convey a sense of scale without divulging specific details, he indicated that a substantial number of devices are currently connected via the Afero platform. While a preference for concrete data is typical, the sensitivity surrounding customer disclosure of device numbers justifies this approach.

Greater transparency regarding customer numbers is anticipated as Afero’s client base expands.

Initial skepticism regarding the potential market size Afero addresses has diminished following the impressive growth trajectory of Samsara.

Samsara’s platform aggregates IoT data from actual business operations, enabling the development of application layers built upon sensor-derived information. The company’s recent quarterly revenue of $113.8 million demonstrates significant market demand for IoT platforms in general.

Afero’s most prominent collaboration, with Home Depot’s HubSpace product line, caters to consumers, differing from Samsara’s focus. Therefore, the two companies are not currently in direct competition. It’s important to note that we are not suggesting Afero is directly challenging Samsara, or vice versa, at this time.

Future observation will center on Afero’s ability to acquire new clients in the coming quarters and its progress towards a level of scale where it can confidently share more detailed performance metrics.