Case Nanit: how a smart baby monitor brought $ 14,000,000 per year
Israeli startup Nanit, which is based in New York, is developing video surveillance systems. It would seem that you can come up with a new one in this area, so that products immediately start to be in demand, and the company get profit? The founders of the company have developed a system for monitoring children.
This system is included in the “ioT” product group, that is, it possesses artificial intelligence. This system not only sees and hears, but can analyze and transmit information to any mobile device.
- website: https://www.nanit.com/ ;
- start year: 2015;
- business today: turnover of 14 million for 2017-2018;
- Founders: Andrew Berman, Assaf Glaser, Thor Ivri;
- previous founders' activities: computer vision and intelligence research;
- Employees: 40 people.
All those who brought up children, remember the first years of their life very well. Children need constant supervision. Combining the upbringing of a child with household chores is sometimes problematic. The child is awake - parents are near. The child is sleeping, and, like, there was a moment for rest, but something still does not give rest. But to reach the store is not at all feasible.
The way out was the surveillance system developed by the company's specialists. But this system is not similar to all other similar ones. This system is armed with sight, smell, and invisible hands. She is also able to analyze the information received and pass it on to her parents. This is a full-fledged artificial intelligence, which is implemented by the company “Nanit”.
To understand its uniqueness, you need to consider all these features separately.
This function includes not only the observation and recording of what is happening in the infant’s crib. This feature allows you to find out how the baby sleeps. The system counts how many times the child has turned over in his sleep, in which position he most often sleeps and from what he wakes up. These data are transmitted to a special application that draws conclusions from the whole incident. After that, the system informs parents of this.
For example, a child often turns over in his sleep. The cause of this behavior can be colic. The system sees this and alerts parents. Parents can consult about such a change in sleep with a pediatrician and change the food of the child, if necessary.
The camera, in addition to the ability to look and see, has a built-in humidity sensor. These are the so-called “invisible hands” that can touch a child without touching it. The sensor will immediately find out if the child did not go to the toilet in a dream, and will inform the parents of this. Such a function will relieve the child from diaper rash, and also will make it clear with what regularity the baby chair occurs.
This function of the system will determine the temperature of the child’s body and will inform the parents if the baby is unwell.
Also, the camera can see everything both day and night. This whole set of functions allows the system to make life easier for parents and not to miss any details that may affect the health of the child in the future.
The potential of such a system is enormous, since it can allow parents not to be “on a leash” at the baby cot. Also, such a system allows you to control the child’s condition if he is left with a nanny who does not have sufficient experience in childcare.
The price of this kit is $ 379. This can be considered an expensive toy. But if you consider that when you buy such a camera, you can save at least time, and as a maximum, the cost of a babysitter, the price does not seem big.
Such a system can be considered a breakthrough in the market of baby monitors, since it has no analogues that can compete.
How to start
One of the company's founders is a scientist who has been studying computer vision for 15 years. This idea he first issued with the birth of his first child. It was 2013. Assaf Glazer created the first prototype of the device at home and tried his work on his child. He knows firsthand what his parents need, and constantly refined the system, bringing it to perfection.
In 2015, Assaf found like-minded people with whom he brought this idea to life.
But such production required considerable investments. According to preliminary calculations, the startup was estimated at 5.5 million dollars. The money came from investors. According to some resources, more than ten companies and individuals have invested in a startup.
With the start of financing, the company management has assembled a team of specialists who have had successful experience with well-known electronics manufacturers.
The team was formed professional, which allowed in the shortest possible time to begin production, attract partners around the world and organize sales.
- The total turnover of the company was: 28 million dollars.
- From them at the start of the project took 5.5 million.
- The turnover for 2016 - 2017 amounted to: 8.5 million.
- The turnover for 2017 - 2018 amounted to: 14 million.
The company is developing rapidly. Her product is in demand, and sales are growing. The turnover from 2016 has increased by 40%, which indicates an ever-growing demand for “smart baby monitors”. The future of the company can be predicted as bright, as the peak of the popularity of the product and its development of new markets is still ahead.
Why did they succeed?
- The success of the company lies in the approach to the business. Nanit has created a product that solves problems. Any parent gets tired, and any of them wants to carve out a minute to rest without running constantly to the child’s room. Manufacturers took the problem, came up with a solution to it and successfully sell it.
- Also, this development allows you to see your baby and determine its condition from anywhere in the world. If the child is left with a nanny, then with the help of this system you can control its work.
- When developing its product, Nanit set a course for creativity and application of the most modern technologies. They made the name immediately and permanently.
- The product of the company will be an indispensable assistant to all parents. It will be the same everyday object as a diaper, or, for example, as a simple nipple.
- This belongs to the category of “eternal business”, and the company “Nanit” firmly occupied its niche in this segment.
Can this be repeated with us?
As for the development and implementation of any new technologies in the post-Soviet space, there are certain problems. If new developments do not shoot and do not fly into space, then especially nobody needs them. The development of such a project can be carried out with us, but the launch of the project is better done abroad. And here are some reasons for this:
- first, our electronics manufacturers are unknown to the global consumer, and the Russian development will not enjoy the confidence and buyers;
- secondly, the sales market is declining due to the unstable economic situation. A startup may not pay off due to low sales;
- and thirdly, we do not have a lot of housing with large areas where a baby monitor can really help. In our apartments, where any rustling is heard, it is unlikely that a child’s sleep monitoring system will be needed.
From this we can conclude that the launch of such a device on our market has little chance, and if there is a clever head, then they better focus on the global market.
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