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Smart home security startup Cocoon raises £2.46m on Crowdcube

Founding Team Cocoon

Smart home security system provider Cocoon has raised £2.46m in equity crowdfunding on Crowdcube, drawing support from 1117 investors and reaching a $15m valuation.

The startup, which launched on crowdfunding site Indiegogo in November 2014 and went on to raise $250,000 (approximately £198,000), also attracted £2.69m in strategic investment from Aviva Ventures and Breed Reply as part of its Seed round last year.

In the past two years, Cocoon has expanded its team from the original five members to over 30 people based in Leeds and London. According to a statement, the funds will be used to continue scaling the business.

Sanjay Parekh, CEO and co-founder at Cocoon, said: “I’m really proud that Cocoon has raised over £2.46m from more than 1,100 investors. It’s incredible for our team to know we have that many people supporting us in the next phase of Cocoon’s journey.

“The funds will enable us to expand our retail distribution, insurance partnerships and continue to improve our product offering for current and future customers,” he added.

Cocoon was founded to bypass traditional home security, which the founders believe is too expensive and complicated.

In order to solve this, Cocoon created its proprietary Subsound technology, which claims to pick up infrasounds, which aren’t loud enough for humans to hear.

The system uses machine learning and geo location to learn users’ movements, meaning that an alert should only ever be sent to the consumer if an unexpected sound or movement is made.

If an alert is triggered by the system, users are notified on their smartphone app and the firm says all data is encrypted and uploaded securely on to the cloud.

Cocoon claims to have customers in 50 different countries across the globe.