Nest Raising $150 Million in Financing on $2 Billion Valuation
Nest founder and CEO Tony Fadell in the company’s offices in Palo Alto, Calif. (Credit: Nhat V. Meyer/Bay Area News Group)
According to Re/code, the $2 billion valuation could be even higher as several investors are vying for the deal. But, according to Recode’s sources, “the transaction appears to have been clinched by Yuri Milner’s DST Global investment firm.
DST has the bulk of the new investment, said sources, but current investors - including Google Ventures, Shasta Ventures, Kleiner Perkins, Generation Investment Management, Lightspeed Venture Partners, Venrock and others - will also participate.”
Nest’s last reported funding round was in Jan. 2013 when it raised $80 million on a post-money valuation of over $800 million.
Nest was founded by “the father of the iPod,” former Apple executive Tony Fadell, who was responsible for the iPod. Fadell gave the opening keynote at CEDIA Expo 2013 where Nest made a major splash by opening up the API on its learning thermostats and announcing a developer program.
The Nest Protect packs several sensors into its tiny, square package, including a photoelectric smoke sensor, a CO sensor, a heat sensor, a light sensor, ultrasonic sensors and an activity sensor. And clients no longer have to open windows and wave towels while making bacon. Instead, just give the Nest Protect a little wave and it will silence the Heads-Up warning before it alerts the entire block.
Of course, like the Nest thermostat, Nest Protect integrates with mobile devices to send out alarms, as well as reminders when the system’s batteries are running low.