This week, Latch SPAC became the latest company to participate in the parade. Founded in 2014, the New York-based company sneaked out two years after launching the smart lock system. However, like many companies primarily known for hardware solutions, Lacht says it is more, providing a connected security software platform for owners of apartment buildings.
The company is set to go public courtesy of the merger with the empty Czech company TS Innovation Acquisition Corp. As far as the partners are concerned, Tishman Spear Properties makes strategic sense here. The New York-based commercial real estate firm is a logical partner for a company whose technology is currently exclusively deployed in residential apartment buildings.
“With a standard IPO, you have all the banks take you to all the big investors,” Luke Schoenfeller, founder and CEO of Latch, tells TechCrunch. “We felt there was an extra level of such strategic partnership and an additional level of product expansion that came as part of this process. Our ability to move to Europe and commercial offices is now significantly accelerated because of this partnership Is happening
The number of SPAAC deals has increased significantly over the past several months, including recent examples such as Tabulla. According to Crunchbase, Lach has raised $ 152 million to date. And the company has seen solid growth in the last one year – not that every hardware or hardware imminent company can say about the epidemic.
As my colleague Alex mentioned today at Xtra Crunch, “By doing some quick matches, Lach increased revenue by 50.5% from 2019 to 2020. Its booked software revenue grew by 37.1%, compared to the same period. During this, its booked hardware top line expanded by more than 70%. ”
“We’ve been a customer and investor in Kundi for years,” Rob Spear, president and CEO of Tishman Spear, tells TechChurch. “Our customers – people who live in our buildings – love the Lach product. So we’ve included it in our residential portfolio […] I hope that we can act as both an idea partner and product incubator for them. “
While the company has plans to expand into commercial offices, apartment buildings have been a good vertical so far – meaning the company does not have to compete directly in the crowded smart home lock category. Among other things, it is probably a net positive if you are going head to head, Amazon says. The company is made into partners in real estate firms such as Tishman Speyer, also a net positive.
Schonfeller says the company is looking at such partnerships as test beds for its technology. “Our products have been in this field for many years. The usage patterns in commercial offices are slightly different. We think we know how they are going to be different, but being able to get them up and running and observe interactions with products in the forest is really important. “
The deal is worth $ 1.56 billion and is expected to close in Q2.