Sacra Logo
View PDF
View Model
Details
Headquarters
Atlanta, GA
Website
Home  >  Companies  >  Flock Safety
Flock Safety
Flock Safety is a company dedicated to creating safer neighborhoods and protecting communities by providing tools customized to deter and solve crime. They offer a Public Safety Operating System that empowers cities to eliminate crime, using cameras an...

Revenue

$140.00M

2023

Growth Rate (y/y)

40%

2023

Revenue

None

Sacra estimates Flock Safety hit $150M in annually recurring revenue in 2023, representing over 2,660% growth since 2020 according to Deloitte's Fast 500 list recognition.

The company operates on a public safety-as-a-service model, charging $2,400 annually per camera with a one-time $350 installation fee. With over 2,500 communities served across 42 states, including 2,000+ law enforcement agencies, Flock has rapidly expanded from its initial HOA-focused customer base.

HOAs still represent approximately 40% of revenue, while law enforcement agencies now constitute the majority. The company's February 2022 Series E valued it at $3.5 billion, implying a 36-73x ARR multiple based on estimated revenue ranges at the time of $48-96M.

Flock's competitive pricing strategy - offering systems at roughly one-tenth the cost of incumbent solutions - has enabled rapid market penetration. The company's network effect strengthens as more devices are deployed, with shared data across jurisdictions increasing product value. Recent expansion into adjacent products like gunshot detection systems provides additional revenue streams beyond core ALPR technology.

Product

Flock Safety was founded in 2017 by Garrett Langley and Matt Feury after Langley experienced a property crime in Atlanta where police were unable to help due to lack of evidence. A conversation with law enforcement revealed that license plate information was crucial for solving crimes, but existing license plate readers were prohibitively expensive.

Flock Safety found product-market fit as an AI-powered surveillance system for homeowners associations (HOAs), offering automated license plate recognition cameras at a fraction of the cost of existing solutions. The company later expanded to serve law enforcement agencies, which now represent the majority of their customers.

The core product uses computer vision cameras to capture vehicle "fingerprints" - including make, model, color, and unique features like bumper stickers or roof racks - not just license plates. When a crime occurs, law enforcement can search the system using various vehicle characteristics, even without a complete license plate number. The cameras are solar-powered and LTE-enabled, requiring minimal infrastructure.

Flock's system includes a centralized database called "Flock OS" that allows different law enforcement agencies to share data across jurisdictions. The company has expanded its offering to include gunshot detection through its Raven product, which works in conjunction with the license plate readers to provide comprehensive surveillance coverage.

Business Model

Flock Safety is a public safety technology company that sells AI-powered license plate recognition cameras and software on a subscription basis to law enforcement agencies, homeowners associations, and businesses. The company operates on a "safety-as-a-service" model, charging $2,500 annually per camera plus a $300 one-time installation fee.

The subscription includes comprehensive services: ongoing maintenance, software updates, unlimited user access, footage hosting, and customer support. Their AI-powered cameras capture vehicle "fingerprints" including make, model, color, and distinguishing features beyond just license plates, storing data for 30 days before deletion.

The company's business model benefits from strong network effects - as more cameras are deployed across jurisdictions, the system becomes more valuable to law enforcement agencies who can access a broader network of surveillance data. Flock Safety initially focused on HOAs (which still represent 40% of business) before expanding to law enforcement agencies, demonstrating effective land-and-expand dynamics across customer segments.

Their competitive advantage stems from offering cameras at significantly lower costs than incumbents (up to 20x more coverage for the same budget), while providing superior AI capabilities and cross-jurisdiction data sharing through their "TALON" network that connects over 700 cities.

Competition

Flock Safety operates in the automated license plate recognition (ALPR) and public safety surveillance market, which generates approximately $2.6 billion in annual revenue as of 2021.

Legacy ALPR providers

Motorola Solutions leads this segment through its Vigilant Solutions subsidiary, acquired via VaaS International Holdings for $445 million in 2021. Motorola offers integrated solutions including fixed cameras, in-car systems, and body cameras. While Motorola's systems offer comprehensive features, they typically require significant upfront hardware purchases rather than subscription pricing.

New-generation surveillance platforms

Verkada approaches the market with a dual-camera system that captures both license plates and contextual video. Unlike Flock's focused ALPR offering, Verkada provides broader security solutions including access control and environmental sensors to over 15,000 customers. Rekor takes a different approach by providing cloud-based ALPR software that works with third-party cameras, focusing on the analytics layer rather than hardware.

Infrastructure software providers

A growing segment includes companies like Proptia that integrate ALPR capabilities into broader property management and access control systems. These platforms typically offer license plate recognition as one component of a unified system for managing communities, visitor access, and security operations. While they may lack Flock's specialized focus on crime prevention, they appeal to property managers seeking comprehensive solutions rather than standalone surveillance tools.

The market shows a clear divide between traditional hardware-centric providers and newer software-first approaches, with competition increasingly focused on data integration capabilities and subscription pricing models rather than just camera hardware specifications.

TAM Expansion

Flock Safety has tailwinds from increasing demand for public safety technology and the digitization of law enforcement, with opportunities to expand into adjacent markets beyond its current license plate reader and surveillance offerings.

Enterprise security and facilities management

The company's AI-powered vehicle detection technology could be expanded to serve large corporate campuses, hospitals, and educational institutions that need comprehensive security solutions. With over 1 million commercial facilities in the US spending an estimated $350B annually on security, this represents a massive expansion opportunity. Flock's existing relationships with law enforcement agencies could provide a competitive advantage in serving enterprise customers who want integrated security solutions that connect with local police.

Smart city infrastructure

As cities invest in digital infrastructure, Flock could expand beyond crime prevention into traffic management, parking enforcement, and urban planning. Their existing network of cameras and AI capabilities could be leveraged to help cities optimize traffic flow, reduce congestion, and improve emergency response times. The smart city technology market is projected to reach $671B by 2028.

Data analytics and insurance

Flock captures over 1 billion vehicle readings monthly, creating opportunities to provide anonymized data analytics to insurance companies, urban planners, and researchers. This could include risk assessment for auto insurers, traffic pattern analysis for retailers, and demographic insights for real estate developers. The company's existing relationships with over 2,500 communities and law enforcement agencies provides a strong foundation for expanding into data services.

The company's proven ability to scale across 42 states while maintaining a 97% camera capture rate demonstrates strong execution capabilities that could support expansion into these adjacent markets.

Risks

Regulatory backlash from unpermitted deployments: Flock's aggressive growth strategy of installing cameras without proper permits has led to moratoriums in multiple states and could trigger widespread regulatory pushback. This pattern of violations risks damaging relationships with state agencies, potentially limiting future expansion. The company's "move fast" approach could result in forced removal of existing cameras, disrupting service to law enforcement customers and damaging brand reputation.

Privacy advocacy resistance: As Flock's network grows to cover 70% of the US population, privacy advocates and legislators are increasingly scrutinizing its mass surveillance capabilities. The company's rapid expansion without clear regulatory frameworks for data collection and retention could lead to restrictive legislation. Growing public concern about surveillance could pressure municipalities to limit or ban Flock's technology.

Law enforcement budget dependence: With 94% of police budgets tied to labor costs, Flock relies on discretionary spending from budget-constrained agencies. Economic downturns or shifts in public safety priorities could significantly impact adoption. The company's subscription model requires consistent renewals from public agencies that face regular budget scrutiny.

Funding Rounds

Share Name Issue Price Issued At
Class G $101.26 Mar 2024
Share Name Issue Price Issued At
Class F-1 $91.55 Jul 2023
Class F $91.55 Jul 2023
Share Name Issue Price Issued At
Class E $91.55 Feb 2022
Class E-1 $91.55 Feb 2022
Share Name Issue Price Issued At
Class D $41.22 Jul 2021
Share Name Issue Price Issued At
Class C $9.71 Nov 2020
Series Class G $101.2607 Feb 2017
Series Class F-1 $91.5512 Feb 2017
Series Class F $91.5512 Feb 2017
Series Class E $88.5105 Feb 2017
Series Class E-1 $88.5105 Feb 2017
Series Class D $39.8496 Feb 2017
Series Class C $9.3846 Feb 2017
Series Class B $4.171313 Feb 2017
Series Class A-1 $3.0205 Feb 2017
Series Class A $1.702634 Feb 2017
Share Name Issue Price Issued At
Class B $4.17 Mar 2020
Share Name Issue Price Issued At
Class A-1 $3.02 Nov 2018
Class A $1.70 Aug 2018
Class A Third $1.27 Aug 2018
Class A Second $1.05 Aug 2018
Class A First $0.85 Aug 2018
Class A First SAFE $0.8478
Class A Third SAFE $1.2717
Class A Second SAFE $1.0492
View the source Certificate of Incorporation copy.

News

DISCLAIMERS

This report is for information purposes only and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal trade recommendation to you.

This research report has been prepared solely by Sacra and should not be considered a product of any person or entity that makes such report available, if any.

Information and opinions presented in the sections of the report were obtained or derived from sources Sacra believes are reliable, but Sacra makes no representation as to their accuracy or completeness. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a determination at its original date of publication by Sacra and are subject to change without notice.

Sacra accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to Sacra. Sacra may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect different assumptions, views and analytical methods of the analysts who prepared them and Sacra is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report.

All rights reserved. All material presented in this report, unless specifically indicated otherwise is under copyright to Sacra. Sacra reserves any and all intellectual property rights in the report. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of Sacra. Any modification, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, or selling any report is strictly prohibited. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Sacra. Any unauthorized duplication, redistribution or disclosure of this report will result in prosecution.