With $25 million in new funding, Pivot3 focuses on future

Company plans international growth; co-founder provides business update


Finally, Caswell said Pivot3 will use some of the money to expand their pool of demonstration equipment. That equipment will be heavily geared toward emerging markets such as Asia-Pacific and Dubai, where there aren't existing installations to show off to prospective customers and systems integrators.

Growing the company internationally means getting feet on the ground around the world, explained Caswell.

"I recently spoke with Lars Thinggaard [president and CEO of Milestone Systems] about how we could work together internationally, and he asked me a single question: 'Do you have local presence in these countries?'," said Caswell. "In the open systems market, companies have to be working together closely, even if it's behind the scenes, so you reduce the risk to integrators and customers. The responsibility is on the vendors to have the systems work together. So the question becomes whether there is someone on site to help integrators work through it."

Certainly international growth for Pivot3 presents a number of stepping stones that the company must accomplish -- placing sales and sales engineering staff overseas, developing relationships with systems integrators and getting those first installs complete. But at least for now, the company is already seeing positive signs in the U.S., where it has focused since its founding in 2003.

Caswell notes that the company has over 140 customers (as of February 2010), and they saw a 40 percent rate of re-purchase from 2008 customers who were expanding their video surveillance systems storage using Pivot3's "scale out" model that allows company to add more storage incrementally without ever having to make a huge up-front head-end purchase. The company has found acceptance in the so-called "Indian casinos" market -- those casinos operated by Native American tribes, but Caswell said they've also seen growth in the transportation market segment, especially in airports.

And with $25 million in the bank, Caswell said he is optimistic that he can take the company's current growth and help make the company an established player around the world – even beyond the world of video surveillance, since he feels the company's storage solutions have IT applications well beyond traditional video surveillance.

"The funding is set to get the company to profitability and cash-flow break-even," Caswell said. "This is the last funding round we expect on the road to something like an IPO."