The market for physical security technologies remains an attractive field for investors.

US company Verkada, a provider of an AI-powered platform for building security and operational processes, has achieved a company valuation of $5.8 billion in a new round of financing. The investment was led by Capital G, Alphabet’s growth fund. Compared to the Series E valuation communicated in February, this represents an increase of $1.3 billion.

The investment comes at a time when Verkada says it has surpassed the $1 billion mark in annualised bookings. This underscores the company’s growing economic importance in the global market for enterprise and building security.

Growth drivers: AI and integrated platform strategy

Verkada positions itself as a provider of a cloud-based, AI-powered security platform that combines traditional physical security functions with data-driven analytics and operational processes. According to the company, more than two million devices are currently in use online in 171 countries. Over 30,000 organisations – including large enterprises, educational institutions and hospitals – use the platform to secure buildings and optimise operational processes.

The new financing is intended in particular to accelerate the further expansion of AI functions. The aim is to increasingly convert security data into usable real-time information, thereby going beyond traditional surveillance and access control solutions.

Security as operational added value

From an investor’s perspective, Verkada represents a structural change in the physical security market. While traditional systems are often fragmented and hardware-centric, Verkada relies on an integrated, software-driven architecture that views security not only as a cost factor, but as a source of operational efficiency.

‘Verkada is fundamentally changing physical security by bringing AI-powered intelligence to a market that has long been dominated by isolated legacy systems,’ explains Derek Zanutto, General Partner at Capital G. The platform has established itself as business-critical infrastructure for customers and is deeply integrated into daily operations.

Market position and customer trust

According to the company, reaching the billion-dollar mark in bookings reflects not only the addressable market potential, but also strong customer loyalty. Verkada emphasises its close collaboration with its users and sees this as a key factor in the further development of the platform.

CEO and co-founder Filip Kaliszan also points out that the financing could also serve to create liquidity options for employees. This is a signal of long-term stability and value creation in a highly competitive technology market.

Classification: Dynamic market with increasing relevance

The current valuation underscores the growing economic relevance of AI-based physical security systems. Increasing regulatory requirements, growing security needs in companies and the trend towards digitalisation of buildings and infrastructures are driving demand for integrated solutions.

With the new financing, Verkada is strengthening its position in a market that is increasingly evolving from isolated security components to platform-based, data-driven security ecosystems. For the industry as a whole, this is another signal that physical security is increasingly being viewed as a strategic component of corporate value creation.

Significance for the European security market

Verkada’s rising valuation is a relevant signal for the European physical security market. In Europe, growing security requirements are meeting with increasing regulation, particularly in the areas of critical infrastructure, data protection (GDPR), workplace guidelines and industry-specific security standards. At the same time, there is a growing need for integrated, scalable security solutions that address both physical and digital risks.

Many European companies are faced with the challenge of modernising historically grown, heterogeneous security landscapes. AI-supported platforms that combine video surveillance, access control, sensor technology and analysis functions in a uniform architecture are therefore becoming increasingly important. Particularly in sectors such as industry, logistics, healthcare, education and critical infrastructure, there is growing demand for solutions that combine security, operational efficiency and compliance.

At the same time, the European market differs significantly from the US market: data protection, co-determination and transparency play a central role in the introduction of AI-based security systems. Providers such as Verkada are therefore faced with the task of adapting their technologies to European conditions, not only technically, but also legally and culturally. The ability to use AI functions in a transparent, compliant and responsible manner is increasingly becoming a competitive factor.

The investment by Capital G and the high company valuation underscore that international investors also see strong growth potential for AI-supported physical security in the European context. For European security providers, this increases the pressure to innovate and consolidate – at the same time, it opens up opportunities for partnerships, technology integration and new business models in a market that is increasingly positioning itself strategically.