SimpliSafe raises $57 million for easy home security device

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SimpliSafe, a Cambridge maker of an affordable, easy-to-install home security system, raised a hefty $57 million from one of the nation’s most prominent venture firms, Sequoia Capital.

The company aims to provide an Internet-era update to the standard security system, with a device that wirelessly sends out alerts and can be controlled from a smartphone. SimpliSafe also said its security system is easy enough for a homeowner to set up in a few minutes.

The firm aims to mirror the success of other companies with Internet-connected home devices, such as Nest, maker of a wirelessly controlled thermostat that Google acquired for $3.2 billion in January.

The funding for SimpliSafe rates as one of the largest for a Boston-area tech company so far in 2014, up there with the $157 million round for e-commerce site Wayfair LLC and the $100 million round for storage software firm Actifio Inc. Gallery of the largest Boston tech fundings this year:

Though founded in 2008, this is the first big outside funding from a major venture backer for SimpliSafe; previously the company raised an undisclosed amount from angel investors. SimpliSafe plans to use the money for hiring, sales expansion, and development of new products.

SimpliSafe provides alarm monitoring for $15 a month. Alerts are sent on a cellular network, meaning homeowners do not need a landline installed in their homes, and they can receive notifications via text message.

The SimpliSafe device starts at $230 for basic motion and entry sensors, while more expensive versions include sensors for fire and gas leaks. The company reports it has more than 100,000 customers to date.

Sequoia Capital is one of the nation’s largest and most successful venture investors. Based in Menlo Park, Calif., its previous investments included Apple Inc., Cisco Systems Inc., and Yahoo!, and recently was the sole investor of the smartphone messaging tool WhatsApp, acquired by Facebook for $16 billion. Sequoia said one of its partners, Scott Carter, will join the SimpliSafe board.

This article appears on page B5 of the Boston Globe on May 22, 2014, with the headline: SimpliSafe Inc. gets big boost from Sequoia.

Kyle Alspach has worked in journalism in Massachusetts since 2005 and was one of the original staff writers at BetaBoston.
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