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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Smart home application demands result in business startups

The idea for a business startup company often comes about when there is a need for a service that cannot be met with existing resources. For example, one woman was looking for a sprinkler controller that could be managed from a computer and was unable to locate such a service. As a software developer she then teamed up with some other individuals to create a system that would allow them to manage their sprinklers from a computer or smartphone.

The Denver-area company they created has raised $17,000 from investors who each paid in a minimum of $159. It’s one of a number of companies that are using such technologies for implementation of gadgets used in the home. Google, for example, acquired a so-called smart-thermostat startup company for $3.2 billion.

One marketer calls this type of business a “rising tide.” He added that there are a large number of available options that can be widely marketed. This market also has the ability to better use such devices than in the past. It’s thought that these smart-home services will reach 74 million individuals in North America by 2019.

It must be kept in mind that many of these start-ups could be considered high risk. The co-founder of one such start-up emphasized that the hardware is expensive and the setting up of these applications need to be performed correctly the first time to avoid additional costs. It’s still being debated whether do-it-yourself products or managed offerings have the greater potential for growth.

Entrepreneurs are often faced with a number of legal complications as well. For this reason it’s strongly advised that no one start a business without at least having access to the advice and counsel of an experienced business lawyer.


Source: The Denver Post, “Denver tech startups are at the center of the smart home revolution,” Andy Vuong, May 8, 2014

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