ShotSpotter IPO suggests there’s not much profit in urban surveillance
observer.com
observer.com
I particularly enjoy this solution for retail locations. How long does someone talk to themselves around a pair of new pants before they buy or walk off and not buy? Is there a correlation between how long a baby screams in a grocery store and how quickly a parent leaves the store without buying something?
How about a graph showing me how long my neighbor's dog has been barking each night at 2am? How about that cough? Do other people who have coughs like that end up being diagnosed with <disease_x>?
Integrating with public safety organizations also took a considerable amount of effort.
That is the jist of what I gathered from a former ShotSpotter employee.
I've been following ShotSpotter, and I'm not surprised by the problem they have been having with false positives. For one thing, gunshots don't sound like cannons in real life, there are so many things that sound like them, especially in an economically deprived neighborhood. Backfiring cars, fireworks, people driving over plastic bottles, lumber being dropped, etc.
One of the reasons I don't call in shots is because it's almost impossible to figure out where a gunshot actually came from. The grid system in Chicago combined with the ubiquity of 3 story brick and stone houses means that sound bounces all over the place. Even sounds that are generally easy to place, such as trains and sirens, often sound like they are coming from a completely different direction .
The other reason I don't bother calling in shots is because I feel like any police officer close enough to respond in a timely manner is likely close enough that they probably heard the shots themselves. By the time I call 911, give them my questionable guess to location, and the police actually arrive there, chances are the shooter is long gone. Even the 911 operators seem uninterested in my calls unless I can give them extremely detailed information about what just happened.
If ShotSpotter is as accurate as the paper indicates, then I think it could be an extremely powerful tool if the information can be given to officers in a timely manner. That being said, from what I've read ShotSpotter is already considered a bit of a success in Chicago, so I think the technology has a solid market.
Given the fact that they have a solid market, I can't help but feel their problem is on the management side of things. Honestly, ShotSpotter seems like one of those companies that should have 25-50 employees, and could be reasonably profitable at that level. Looking at their SEC filing, it seems like they spend way too much on Admin and Marketing, given the fact that 1) their market seems reasonably straightforward from a sales perspective and 2) their technology seems to speak for itself.
That being said, I have no idea how much trade shows and such cost, but overall I feel like there is no reason they shouldn't be profitable after 20 years of existence given the fact that they appear to have basically the only viable product in the market.
I live two blocks from the train, and it takes me less than 10 minutes to get to the loop. The neighborhood is also close to the neighborhoods where I like to spend time.
That isn't to say I wouldn't prefer to live in a nicer neighborhood, but I don't think the benefits are worth the added cost. Plus, to be quite frank, nobody is shooting at me.
They have a hard enough time responding to the existing real-life humans who call them. I've reported gunshots in my neighborhood and waited more than 30 minutes for a response (we also have shotspotter).
If ShotSpotter can give a location to within a couple hundred feet within 30 seconds of shots being fired, then the officers already have a much better chance of doing something useful.
I think the real opportunity would be combining data from ShotSpotter with other data sources and using them for predictive/preventative policing. That's much harder to quantify from a sales perspective though.
It's dumb technology--it's like everything the MIC has done to try and re-market to police agencies, it's unnecessary and pretty much worthless.
I'm well aware police officers aren't specifically sitting around waiting to be dispatched, but my neighborhood has a lot of idle officers that exist as a 'show of force'. I don't mean that in a derogatory way, I just mean that this officers are already dispatched to my neighborhood as a way of reducing violence. I think that responding to areas ShotTracker has flagged would be both within their capabilities in addition to being in line with their duties and priorities.
They use it to aggregate reports and consider increasing patrols (I say consider, because they often don't look at it anyway ).
Though I guess this is probably good motivation to go to one of the Chi Hack Nights, because I'm sure if someone there doesn't know how Chicago is using the ShotSpotter data, they probably know how to find out.
When you consider how often reporting gunshots or (pretty much anything) to your local PD does any good to any stakeholder I would say they're wildly over-reported.
Contrast that with my time living in a quiet suburb in another state. There was some public land nearby that would attract target shooters. Some neighbors were up in arms (no pun...) over it. While speaking with one neighbor she was worried about the "automatic" gunfire she could hear nearby and she was sure they were not out far enough from the neighborhood. She was right about one thing - it was in the neighborhood, but it was workers nailing sheeting on walls for a new house. They had multiple nail guns running as fast as they could. Yes - she had reported gun shots, many times. I'm sure some of them really were, but they were all very likely to be legal.
If they were recording all audio everywhere, hey, that's creepy. But it doesn't seem like that's what they're doing.
I'm not saying whether or not that's a good decision, but saying "you can't" is misleading. Trust is a choice, and time tells whether you made the right one.
The business strategy is to keep revenue coming in. They need to fund R&D (and an IPO could help with that) and time to drive up signal/noise and drive down costs.
The solution to the gunshots problem is before the guns shoot, like background checks required to own a weapon.
That a company could make an IPO over such an idea goes very, very far in describing today's America.
Soon to come: the laptop you can assembly yourself and that can be carried in the cabin?
Most uses of a firearm in cities are by people who are already prohibited from having/buying one.
They will use stolen or straw purchased guns that are passed from prohibited person to prohibited person for as little as $50 until someone is caught with it.
Now the tech behind this actually helps the police find unreported gunshots and run reports on where most gunshots occur so they can focus their attention on that area. I don't find that troublesome in the least. As a country with high firearm ownership there are always going to be certain problems, so we try to mitigate those issues with tech.
these people are murderers. they buy illegal guns illegally, to commit illegal crimes. they don't care about your laws. you could make all guns illegal tomorrow and they would still have guns.