Investors Consider Smart Hub Maker Revolv a Smart Bet, Invest $4M

to 95 percent of home automation products, Soucie said. It’s also betting consumers will want the ability to mix and match devices and not be locked into a single manufacturer’s walled garden, although manufacturers might have different ideas.

From another perspective, every new smart thermostat, light switch, or lock sold helps Revolv by creating a potential future customer, Soucie said. Those manufacturers also are creating a market and building awareness of home automation technology and smart devices from which Revolv could benefit.

Close to Home

Revolv manufactures its hubs in Frederick, a town about 25 miles east of Revolv’s home in Boulder. The decision to stay local was a pragmatic one, Soucie said. Revolv’s founders have experience with hardware startups, and they’ve learned the value of being close to the guys making the first products.

“We found that early stage companies really need to hand-hold and babysit [manufacturers] through the product development process. As much as you can maybe save going overseas, you lose it through the difficulties [of working abroad],” Soucie said.

Along with travel, that includes getting better components and craftsmanship, he said.

But as Revolv scales up—it will have to do so dramatically to meet expectations—keeping manufacturing in Colorado or the U.S. might not be economical, Soucie said. The current facility is able to only crank out 50 to 100 hubs a day. That’s enough for pre-orders and to keep up with website orders, but not in the long run.

Author: Michael Davidson

Michael Davidson is an award-winning journalist whose career as a business reporter has taken him from the garages of aspiring inventors to assembly centers for billion-dollar satellites. Most recently, Michael covered startups, venture capital, IT, cleantech, aerospace, and telecoms for Xconomy and, before that, for the Boulder County Business Report. Before switching to business journalism, Michael covered politics and the Colorado Legislature for the Colorado Springs Gazette and the government, police and crime beats for the Broomfield Enterprise, a paper in suburban Denver. He also worked for the Boulder Daily Camera, and his stories have appeared in the Denver Post and Rocky Mountain News. Career highlights include an award from the Colorado Press Association, doing barrel rolls in a vintage fighter jet and learning far more about public records than is healthy. Michael started his career as a copy editor for the Colorado Springs Gazette's sports desk. Michael has a bachelor’s degree in English from the University of Michigan.