The launch of the ButterflyMX smart intercom raised $ 35 million in growth capital to meet the growing demand for contactless entry into apartment buildings.
The round, led by Volition Capital, brings the company’s total funding to $ 40 million. Founder Cyrus Claffey said the company would use the money to develop other products and use new verticals, including commercial real estate. Egis Capital, RiverPark Ventures and Stifel Financial Corp. also joined the round.
Founded in 2015, the New York startup uses smartphone technology that allows tenants and property managers to see and grant visitors access to the building without the use of keys or drivers. ButterflyMX is currently used in 4,500 services across the United States and claims to have more than a million users. Clients include Greystar, AvalonBay Communities, Lennar, Lincoln Property Co. a Equity Residential.
Only with the touch screen ButterflyMX automates the entrance to the building using “virtual keys” similar to QR codes and a secure PIN. Visitors can use the app to make video calls with residents, and deliveries can be automated by providing codes to drivers with limited use to access the building.
“Most buildings still use ordinary old keys.” But once we give them away, it’s impossible to go back, “Claffey said, adding that ButterflyMX is a safer and more convenient choice. “We live in a mobile world.”
Claffey said the company will use the new capital to develop products that can be used inside buildings – not just front doors. Claffey also wants to expand into new industries, including commercial real estate, and expand into selected international markets where it has existing customers.
The company with 125 employees will also focus on hiring another 80 employees within 12 months. “There’s a huge runway ahead of us,” Claffey said. “This increase was designed to help us grow aggressively.”
ButterflyMX closed the round in March 2020, but postponed reports due to a pandemic. Claffey said spike in the supply and demand for contactless entry was an eye for property owners and managers. “The industry was backward.” All residents use smartphones to manage and control their lives, “he said. “The industry isn’t keeping up, so I think Covid was an alarm clock.”
Other smart home start-ups have seen a similar increase in demand.
Ratchet, a New York-based smart lock startup, said it had sales of $ 100 million in 2019 and is on track to exceed that amount this year. Latch, backed by Avenir Growth Capital and Brookfield Ventures, received $ 152 million and was last valued at $ 400 million.
Competitor SmartRent, which manufactures hardware and software for apartment rentals, received $ 60 million in May.
Household names such as Google and Amazon have been playing in the area for years. Google invested earlier this year $ 450 million acquire a stake in security giant ADT. The agreement gives ADT more firepower for technology-based security solutions.
Last week, Amazon also debuted a lot of new devices for smart homes. They include a drone for a home camera and a rotating speaker with a camera.