Flock Safety and Verkada valuations top $5 billion as investors back AI and cloud security

A Memoori Research review of smart building startups, published August 2, 2026, found that physical security produces the largest individual funding rounds in the smart building sector. In 2025, the five largest rounds across all smart building categories went to security companies. Flock Safety and Verkada are the only startups in the sector valued above $5 billion, with Flock's valuation rising to $8.4 billion in April 2026 and Verkada valued at $5.8 billion in a December 2025 round. Drone maker BRINC raised $125 million in 2026 in a round led by Motorola Solutions.

Memoori identified three trends behind the money: AI-native platforms replacing legacy CCTV by automating alarm triage and video analysis, drones moving from pilots to mainstream emergency response, and cloud platforms that combine cameras, access control, sensors and alarms in one system. The firm also flagged the main risk: privacy and regulatory scrutiny of license plate recognition networks and widespread cloud cameras.

For business buyers, heavy investment means rapid product change and aggressive sales. That can be good for features, but it is worth slowing down. When you get a proposal, ask how AI detections are configured and reviewed, what video and analytics data is stored in the cloud and for how long, and whether the vendor shares data with law enforcement or other customers. Check whether your state has rules on license plate readers or biometric data before deploying them.

Also ask about the hardware lifecycle and licensing. Cloud platforms often tie cameras to subscriptions, so understand what you own outright.