Allegion Establishes $100M Corporate Venture Fund II
We are proud to announce Allegion Ventures Fund II and our ongoing work with Allegion to help manage the fund. Below you can read the official press release, which is also published here.
-Jack Taylor
What’s the news
Allegion Ventures announced its $100M second fund (“Fund II”) to expand the efforts begun in 2018 with its $50M first fund (“Fund I”) backing early and growth stage security and safety startups. Fund II will continue to invest in startups bridging physical and digital security.
Why it matters
Physical and digital security are increasingly essential in modern society. Maximizing safety where people live, work, study, shop, or worship should not require making difficult trade-offs with convenience. As businesses respond to rises in physical threats and cyber risks, they must also recognize consumers may abandon brands if security comes at the expense of individual privacy and seamless user experiences. Addressing these needs is the heart of Allegion’s business and the driving motivation for Fund II.
Who it’s for
Seed through growth stage startups whose solutions enhance “seamless access” across locations and devices, leverage data to make buildings and assets smarter, secure physical assets and devices, and advance the management of a building’s lifecycle from initial design to adaptive re-use. Allegion’s experience in residential and commercial markets, distribution and marketing presence in almost 130 countries, manufacturing capabilities, and deep industry relationships can add value to startups within the security and real estate categories.
CARMEL, IND. (Dec. 1, 2021) — Allegion Ventures — the corporate ventures arm of Allegion plc — has launched a second fund to accelerate technology and software investments in IoT and data security, building analytics, construction lifecycle management and property management. $100 million is allocated to Fund II, double the size of Allegion Ventures’ initial $50 million fund that launched in March 2018.
Bobby Prostko has been named managing director for Fund II. Prostko, who joined Allegion Ventures as a principal in 2018, also serves as Allegion’s deputy general counsel, intellectual property and cybersecurity, and chief privacy officer. He said the success of partnerships built through Fund I drove momentum for the creation of Fund II, which will write initial checks that are generally in the range of $500,000 to $10 million.
“For more than three years now, Allegion Ventures has taken an investing approach designed both to deliver financial returns and to spur innovation,” Prostko said. “Given the success we’ve had with that approach, we’ll continue to invest in promising companies where Allegion Ventures can be a strategic partner, adding value through our expertise in global markets, commercial and channel relationships, security standards and operational excellence. We’re inspired by and want to explore new technologies and software solutions that creatively solve common problems in an expanded list of targeted sectors — and we’re in a position where we can take bigger bets for the right opportunities.”
President Rob Martens and Chief Marketing Officer Doshia Stewart, co-founders of Allegion Ventures, said the team remains active in its support of Fund I investments.
“Allegion Ventures continues to invest in its Fund I portfolio companies, and our principals and associates are actively involved with them as board members, observers and collaboration partners,” Martens said.
“We’re very proud of the innovation and growth we are seeing from the early-stage companies we’ve already invested in, as they go beyond traditional approaches to bridge physical and digital security and create seamless user experiences,” Stewart added.
Fund I is focused on people flow, seamless access, campus safety and asset management. Its seven active portfolio companies include HqO, Kasa, Mapped, Mint House, Pindrop, Robin and VergeSense.
“VergeSense is proud to be a part of the Allegion Ventures Fund I family, and we appreciate their continued strategic support of our business,” said Dan Ryan, CEO of VergeSense. “The Allegion Ventures team has brought a lot of value to VergeSense through its vast industry knowledge helping us to build a leading workplace analytics platform. We congratulate Allegion Ventures on the launch of Fund II and look forward to watching them expand the impact of innovative software and technologies that create seamless user experiences.”
Allegion Ventures Fund I additionally invested in Openpath Security, which was acquired by Motorola Solutions earlier this year..
The Allegion Ventures team also includes Principal John Goodwin (Allegion Americas vice president and general manager of multi-family access) and recently added a new principal, Hatsuki Miyata (Allegion’s deputy general counsel and corporate secretary).
Allegion Ventures continues to work with corporate venture capital firm Touchdown Ventures in managing both its Fund I and Fund II investments. Touchdown works with multiple Fortune 500 corporate venture funds in a similar capacity.
For more information about Allegion Ventures, visit www.AllegionVentures.com.
###
About Allegion Ventures
Allegion Ventures is the corporate venture fund of Allegion. It invests in and accelerates the growth of companies with innovative technology or software that bridge physical and digital security and create seamless user experiences. For more information, please visit www.AllegionVentures.com.
Jack Taylor is a Principal at Touchdown Ventures, a Registered Investment Adviser that provides “Venture Capital as a Service” to help corporations launch and manage their investment programs.
Unless otherwise indicated, commentary on this site reflects the personal opinions, viewpoints, and analyses of the author and should not be regarded as a description of services provided by Touchdown or its affiliates. The opinions expressed here are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any security or advisory service. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice. While all information presented, including from independent sources, is believed to be accurate, we make no representation or warranty as to accuracy or completeness. We reserve the right to change any part of these materials without notice and assume no obligation to provide updates. Nothing on this site constitutes investment advice, performance data, or a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Investing involves the risk of loss of some or all of an investment. Past performance is no guarantee of future results.
