How much money is there in smart thermostats and smoke alarms? Try more than $2 billion.
Nest, the smart home gadget startup, is reportedly in the midst of raising a huge round of funding — between $150 million and $200 million – reports Re/Code (the site founded by the AllThingsD team). That range puts Nest’s future valuation somewhere between $2 billion and $3 billion, sources say.
While it sounds like investors are still actively trying to get in on the new round, sources tell Re/Code that Yuri Milner’s DST Global investment firm has scored the leading role.
Founded by Tony Fadell, a former Apple executive who was instrumental in the development of the iPod, Nest launched its smart learning thermostat in 2011. While that seemed like a strange device category to target, Nest gathered plenty of buzz for the thermostat’s unique designs, mobile connectivity, and smart capabilities (it learns your habits to better manage temperature settings).
The Nest Protect, a smart smoke and carbon monoxide detector, launched a few months ago. The company made it clear that it’s aiming to make your home smarter bit by bit, with a major focus on “boring” product categories.
“We reinvent essential things, not superfluous things … Things that are important to have in your home,” said Maxime Veron, Nest’s director of product marketing, in a recent interview with VentureBeat. “We’re in the mindset of looking at unloved products … We have a list of products that aren’t right and we want to change,” he added.
Nest is based in Palo Alto, California and has most recently raised a reported $80 million in funding.