Crosspoint sees opportunity in proliferation of ‘smart’ devices in Afero investment

Crosspoint Capital joins the Home Depot as investors in Afero, hoping to take advantage of what could be a $1.6trn IoT market over the next four years.

Crosspoint Capital sees opportunity to incorporate security software into more “smart” devices like thermostats, lightbulbs and washing machines after its $50 million investment in security platform Afero.

The investment aligns with the firm’s investment strategy, which focuses on cybersecurity, privacy and infrastructure software markets.

“The cybersecurity space changes all the time as you have a constant adversary on the other side that is well financed, smart, adaptable – creates all these puzzles and problems that need to get solved and then re-solved, a never-ending cycle of opportunities,” according to Hugh Thompson, managing partner at Crosspoint Capital.

Home Depot also is an investor in Afero. By the end of 2022, Afero software will be a part of more than 100 products sold by Home Depot.

In today’s world, there is an increasing demand for connected and smart devices among consumers, retailers and manufactures alike, increasing the need for more security. Afero’s software enables secure device connectivity from manufacturing through to the end consumer.

Afero’s software provides safe communication across various devices from light bulbs to thermostats and washing machines. Its platform also provides secure communication between the device and Afero’s hosted cloud services.

According to Statista, the Internet-of-Things market is expected to grow by $1.6 trillion by the year 2025.

Earlier this year, Crosspoint raised its first fund, collecting more than $1.3 billion for deals covering cybersecurity, privacy and infrastructure software.

“There are few tech companies that aren’t a security technology company that have security baked into the product, and not only is it simple and easy to use, but the connections all the way through are completely secure,” he said. “The opportunities in the IoT space abound.”