Allegion Ventures launches $100M technology investment fund
Security products company Allegion Plc says it has had such success with its initial technology-focused investment fund over the past 32 months, that it’s now launching a $100 million fund that’s double the size of the original.
The company announced Wednesday that its corporate ventures arm, Allegion Ventures, has created a fund that will invest in companies working in the internet of things, data security, building analytics, construction lifecycle management, and property management. The fund, called Fund II, aims to make investments in the range of $500,000 to $10 million.
Allegion is headquartered in Ireland, and its Americas division is based in Carmel. The company makes a range of products, from mechanical and electrical locks to electronic safety products, under brand names that include Schlage, Steelcraft, Von Duprin and others.
The company’s deputy general counsel, Bobby Prostko, has been named managing director for Fund II.
Prostko said the success of Allegion Venture’s initial $50 million fund, launched in March 2018, convinced the company it was time to start another fund. “When you see that kind of success, then you say, ‘OK now. What is the next step?’”
The new fund will be managed by corporate venture capital firm Touchdown Ventures, which has offices in Los Angeles, Philadelphia and San Francisco. Touchdown also manages Allegion Ventures’ Fund I.
Fund I has seven active portfolio companies: Boston-based HqO, San Francisco-based Kasa, El Segundo, California-based Mapped, New York City-based Mint House, Atlanta-based Pindrop, Boston-based Robin and San Francisco-based VergeSense. A prior portfolio company, Culver City, California-based Openpath Security, was acquired by Motorola Solutions earlier this year.
Any future investments in those seven portfolio companies will come from Fund I, Prostko said, but Allegion Venture’s investments in additional companies will come from Fund II.
Allegion Ventures’ purpose in establishing the funds, Prostko said, is to invest in companies and to create business partnerships with them. “We can help them, and they can help us.”
One example of a partnership might be incorporating a portfolio company’s technology in an Allegion product, which would allow Allegion to take that product to market more quickly than if it had developed a similar technology in-house.
Gloss