One Raven, a smart home system developed by the minds behind SmartRent, announced its launch on Tuesday with a US$5 million seed funding round. Proptech venture capital firm Fifth Wall led the round for the Scottsdale, Arizona-based startup. Co-founded by Lucas Haldeman, now CEO, and Sarah Roudybush, President, One Raven describes itself as the first privacy-centric smart home platform, enabling homeowners to control their data locally rather than connecting via the cloud. Haldeman and Roudybush were previously the team behind SmartRent’s successful smart apartment platform.
One Raven has developed its own tablet-based server and proprietary code for this purpose. The servers enable all devices to operate locally, ensuring homeowners’ data remains within the home network. Homeowners can securely access and manage the system remotely, without subscriptions, hidden fees, or the monetisation of behavioural data in the background, according to the company. Lucas Haldeman explained that they looked at smart home ecosystems and found a gap, as all private data generated in one's own home was being shared with large technology companies.
Focus on Data Privacy and Local Data Processing
The goal was to develop a privacy-focused smart home system. This resonates particularly in the current AI world with its challenges regarding derived data and data leaks. The system's hardware is manufactured outside the US, while the software is developed in Arizona. The cost for a 'normal single-family home' ranges between US$2,500 and US$3,500. Haldeman further explained that it would not be the cheapest solution, as the company does not sell data and does not charge ongoing subscriptions. One Raven is not trying to compete with the large technology companies or offer products at a low price where the business model is not transparent.
The One Raven system combines its server with smart devices that function without sending a home’s data to the cloud. Homeowners can configure any home with their desired devices, including thermostats, locks, leak detectors, and security sensors. Each system, according to the company, comes pre-paired and factory-configured. Haldeman added that Phase 2 of One Raven's system development will include video components and doorbell cameras.
Competition and Market Potential
One Raven employs over 15 full-time staff and is using the seed funding to hire more staff in hardware engineering, software, field implementation, and go-to-market roles in Phoenix. The first partnerships with homebuilders are expected to be announced in the third quarter. Despite its focus on data privacy, One Raven ultimately competes with established smart home players such as Amazon, Google, and ADP in the security sector, according to Haldeman.
Brendan Wallace, founder, CEO, and CIO of Fifth Wall, expressed confidence in his firm's investment. He cited two main reasons: The previous collaboration with Lucas and Sarah at SmartRent and their ability to build a dominant company. Secondly, the issue of data privacy is very real. Wallace quoted a well-known saying: if you are not paying for a product, you are the product. This also applies to price reductions. You always pay something, often in the form of relinquishing privacy. He believes there is a unique moment where the convergence of the desire for a smart home and the need for privacy creates a comprehensive solution.
