Garage startup Ring sold for $1 Billion to Amazon

Garage startup Ring sold for $1 Billion to Amazon

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Yes, it is true that the startup Ring sold for $1 Billion. The biggest Retail Store in the world Amazon has announced today  (Tuesday 27th Feb, 2018) that it has bought Ring for whopping $ 1 Billion dollars. In this post we tell you about Ring , how it almost failed and how it came back ?

About Ring

Ring is a technology startup that has developed a door bell which connects seamlessly with your smart phone. Ring started as DoorBot in 2012 in a garage by Jamie Siminoff in California, USA. Today it has over 1,300 people, 10 core products and sold across 16,000 stores.

Failed On Shark Tank

Jamie Siminoff, the CEO and founder of Ring appeared on the popular angel investor reality show “Shark Tank” in 2013 with a investment pitch of $ 700K for 10% stake in DoorBot (now Ring) which makes the company worth $6.5 million dollars in total. Ironically, the pitch was rejected by the Shark Tank investors

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Investment in 2017

Celebrity investor Richard Branson participated in Ring’s funding in early 2017 which brought the company’s total funding to $209 million, according to The Wall Street Journal. After the round, the Los Angeles Times reported Ring’s valuation at $460 million.

Why Amazon Bought Ring ?

Amazon has announced that it has bought Ring for whopping $ 1 Billion dollars. In 2017 Amazon unveiled its security camera and lock combination in a bid to enter home security market. This links with Amazon’s cloud subscription service called “Key” which is a lets a customer receive amazon product delivery inside their home even when they are not present at home to receive the delivery. Delivery people are not given access codes because the unlocking doors is done online. With Ring’s hardware , technology and patents , Amazon can leverage it to facilitate its existing “Key” program.

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Ring’s Statement

According to statement by Ring “Ring is committed to our mission to reduce crime in neighborhoods by providing effective yet affordable home security tools to our neighbors that make a positive impact on our homes, our communities and the world. “We look forward to being a part of the Amazon team as we work toward our vision for safer neighborhoods.”

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