Brivo CEO Steve Van Till on Cloud-Based Access Control and SPAC Merger with CPTK

by | Dec 17, 2021

Steve Van Till founded Brivo back in 1999. The cloud-based access control company serves all type of real estate from single-family homes up to commercial buildings. Steve talks to us about Brivo and why in a post-covid world access control is more important than ever – particularly in an increased environment of hybrid work. 

Having been almost entirely self-funded for its entire history, Brivo is going public via SPAC to expand sales and accelerate growth. Is it worth taking a bet on the most mature cloud-based access control company out there?

Investor Presentation

About Steve Van Till

Key Takeaways

On the business

  • Early adopters of building and security cloud technology
  • Brivo’s platform is used across all property types, though their history is longest in commercial properties
    • 750 enterprise accounts including Whole Foods (all locations), DocuSign
  • 95% customer retention with customer relationships ~10-15 years long
    • SaaS nature of the service keeps customers renewing
  • 40% subscription revenue with balance being hardware, aiming to grow that pie of recurring revenue with high gross margins on both sides
  • On competition and opportunity
    • Enterprise: Brivo is only mature cloud company, and balance of the market “old iron” who have been slow to adapt to cloud
    • Commercial RE: most crowded, but highly fragmented. some newer / smaller VC funded companies
    • Multifamily: lot of startups, i.e. Latch (LTCH), where there is a lot of focus 
Brivo Expects over 55% revenue CAGR out to 2025
Brivo Expects over 55% revenue CAGR out to 2025

On the deal + growth

  • Large and growing TAM amid “PropTech” surge
  • The “new normal” of hybrid work (and also co-working space) is driving greater adoption of the need for building security products
  • Expecting 55% revenue CAGR from $72M this year out to $417M in 2025
    • Goal to get to majority SaaS revenue by 2024
  • Use of proceeds for the SPAC deal is to expand the sales effort
    • Haven’t really raised new capital for the business since 2000. 2015 sale was really a re-cap and liquidity event for management
  • $75M PIPE is structured as a convert
  • Crown was chosen by Brivo (among several inbound SPAC offers) due to:
    • Philosophical alignment in PropTech
    • Operating experience of crown with >1mm square feet of managed real estate
  • Looking to be acquisitive and buy companies in adjacent product areas
    • Workplace and tenant experience (e.g. CRM) – focusing on the people

Deal Overview

  • SPAC: Crown PropTech Acquisitions (CPTK)
  • Sponsor: Crown Acquisitions
  • Deal announced November 10, 2021
  • $808M enterprise value 
  • $75M PIPE: Golub Capital Credit Opportunities + Eagle Eye Networks
brivodeal

SPAC Sponsor: Crown PropTech

First time SPAC sponsor Crown Acquisitions has deep commercial real estate experience and is led by Richard Chera.

Steve mentions that Crown’s philosophical alignment, roots in Brivo’s customer base, and Crown’s operating history as all reasons for alignment. In addition Cera is the founder of a PropTech aggregator, REWYRE, that matches supply and demand which is an additional channel that Brivo can utilize to grow customers. 

crownproptech

Topics Discussed

  • Steve’s history and founding of Brivo
  • Real estate areas of coverage and enterprise customer base
  • Mix of software vs. hardware in Brivo’s business
  • Breakdown of growth expectations
  • PropTech secular trends as a positive tailwind for the company
  • Fundraising, SPACs, and why they picked the crown team
  • Competitive landscape (enterprise, commercial, and multifamily)
  • Brivo’s leadership team 

More from Boardroom Alpha

For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha’s SPAC Data and Analytics service.

The Know Who Drives Return Podcast

See all the latest episodes and full backlog here.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)

<a href="https://www.boardroomalpha.com/author/draps/" target="_self">David Drapkin</a>

David Drapkin

Spent his formative years at Goldman Sachs and now embraces the start-up life in NYC. A long suffering Oakland (Las Vegas) Raiders fan and graduate of the Wharton School at the University of Pennsylvania. Semi-professional go-kart racer waiting for his shot.

Know Who Drives Return

Objective, data-driven assessments for every public company director and officer.

SPAC Analytics & Database

Comprehensive research and analytics on every SPAC, sponsor, and deal. Real-time alerts, yields, red flags, filings, investors, and much more. API access to institutional grade SPAC database.

Monthly SPAC Review

SPAC Market Review – May 2022

Inflation, rising interest rates, and reduced corporate earnings across the board have led to persistent market gyrations which prove its too early for bottom fishing. The stampede out of deSPACs now makes it ‘deal-or-die’ time for those without targets.

SPAC Market Review – April 2022

The market is a mess right now. A hawkish Fed and even more cautious SEC are slowing deals….but may raise the bar for more quality SPACs down the line.

SPAC Market Review – March 2022

Despite increased scrutiny and apparent investor fatigue, deals are getting done and SPACs remain an attractive path to the public markets.

SPAC Research & Analysis

Alvotech Puts Iceland on the SPAC Map

Icelandic biopharma Alvotech deSPACs today. DHAC announces DA with VSee Lab. Deal termination for AKIC and visual effects company DNEG. A flurry of extension votes. And the rest of the day’s news in SPACs.

Know Who Drives Return Podcast

NYC Pension Funds Want Amazon Accountable for Human Capital

AMZN stock is performing, but are warehouse workers paying the price? We talk to Assistant NYC Comptroller Michael Garland on the NYC Pension Funds’ move to unseat two Amazon board members responsible for human capital management at the tech giant.

Boardroom Alpha Daily Read

Board blow-up at Redbox Entertainment. Mill Road Capital Pushing for a Sale of Big Lots. Happy Earth Day! A perfect time to tune into our latest ESG podcast.

Disclaimer

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but Boardroom Alpha cannot guarantee its accuracy and completeness, and that of the opinions based thereon. 

This report contains opinions and is provided for informational purposes only – it does not constitute investment, legal or tax advice. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.  

None of the information contained in this report constitutes, or is intended to constitute a recommendation by Boardroom Alpha of any particular security or trading strategy or a determination by BA that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  

No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Boardroom Alpha does not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed.