Gunfire Detection Co. ShotSpotter Takes $9.4M Series B

By Ryan Stewart

4/12/2006

Santa Clara , Calif. -- ShotSpotter Inc., a company selling wired and wireless systems that allow law enforcement to pinpoint the origin of a gunshot, has raised $9.4 million in Series B funding.

The round, which closed on April 10, was led by City Light Capital and Claremont Creek Ventures. Other participants in the funding included Lauder Partners LLC, RNR Ventures, Labrador Ventures and Band of Angels. The company's total financing now stands at $10.5 million.

As attested to by the large number of media notices on the company's Web site, ShotSpotter came to prominence when its technology aided in the capture of Charles McCoy Jr., a sniper convicted of terrorizing a stretch of highway in Columbus, Ohio in late 2003 and early 2004.

"The FBI will tell you we were materially involved in the capture of that suspect," said ShotSpotter President and Chief Executive James Beldock.

The ShotSpotter technology operates like this: A series of sensors are placed around high crime areas and acoustic triangulation is used to measure the distance of the shot from each sensor. The fix on the shot location is then transmitted to a law enforcement computer, resulting in a rapidly increased response time.

The company claims a 31% reduction in violent crime in ShotSpotter's coverage area in South Carolina and 70% to 80% reductions in coverage area gunfire rates in Los Angeles and Redwood City, Calif.

Proceeds from the round will go toward the expansion of its existing law enforcement business lines and for acquiring a larger portfolio of military customers, Beldock said. Today, ShotSpotter counts as customers the Federal Bureau of Investigation, the U.S. Attorney's office, the National Institute of Justice and the U.S. Joint Forces Command.

Details of new contracts with the Department of Justice and the Department of Defense will be announced within the next six months, Beldock added.

ShotSpotter has also shown an interest in growing by acquisition. In March 2005, the company purchased business partner Centurist Systems in order to add additional wireless capabilities and other features to its technology portfolio.

"We are absolutely looking at strategic acquisitions and alternatives," Beldock said. "We've grown by acquisition before, and we expect to again."

In conjunction with this round of funding, City Light Capital Chairman Marc Weill and Claremont Creek Managing Director Randy Hawks will both take board seats, bringing the total number of seats to six. No further funding rounds are planned, Beldock said.

Based in Santa Clara, Calif., the company has thirty employees.

http://www.shotspotter.com

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