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Bullish on Daisy, our latest investment

June 24, 2024

Daisy is a Smart Home technology company that creates customized smart spaces for homes and businesses. Since launching Daisy in Fall 2023, Co-Founder Hagan Kappler has launched three branches in California and Florida, while acquiring two top service providers in Connecticut (with many more to come). 

How we met 

We were introduced to the team through an existing investor in Daisy (thanks, Dave!). He does not do a lot of consumer deals, but we are glad that when he does, he comes to us. 

We love finding super passionate founders who are a healthy amount of paranoid about the problem they are aiming to solve. Hagan has undeniable experience (and a stacked resume) as well as conviction in what she and Dion are building with Daisy. Hagan does not pretend to have all the answers, but she will find them when she needs to. We had several meetings with Hagan and the team and their confidence in Daisy’s direction and the energetic conversations moved us swiftly to a yes. 

What clicked

We believe Daisy is addressing a clear, glaring need for a key consumer audience. The average home has 22 Internet-connected devices, and the Daisy customer has 40+. The home services market has exploded and “do it for me” businesses are on the rise. Considering our previous work with Neighborly, we have not seen anything like what Daisy is offering. That is, creating harmony between people and their devices through technology-integrated smart home and office spaces. 

The supply side of this area has been very Mom-and-Pop dominated, which means you have a stable of customers with a clear need that’s not being met because these businesses are not built to service their customers in the digital age and there’s no national brand that’s empathetic to them. Given how hot home services have been, we had not encountered a proposition addressing this aspect of the connected home conundrum until Daisy. 

Why we committed 

Smart Home services is a $30 billion market without a clear market leader. Daisy is bringing a sort of naivety to this market because it is questioning why this has not been done yet and delivering the experience that ought to exist for consumers. 

Daisy has a very efficient business model that will grow rapidly and intelligently as new Daisy-branded branches emerge through acquiring existing local companies that meet highly selective criteria. Because of its dual launch and roll-up strategy, Daisy can purchase  cash-flowing business, and then reinvest that revenue back into the business - a model that’s tried and true in private equity. Based on some of the more thoughtful brand experiences Hagan is devising, we are excited about the brand that Daisy could become. 

Why Daisy will become a big brand

Over the past decade, the rise in do-it-for-me (DIFM) home services has accelerated due to a number of tailwinds. Dual-income families do not have the time to deal with household projects. People are downsizing. And they’re moving and working at home more. Which are all creating new demands.

Having deep experience in the category across HVAC, plumbing, painting, electrical, etc., we knew that one area had been left out: A/V. 

We are living in a more connected world as 60% of homes use Wifi for homework, people join virtual doctors appointments, and the demands on our Internet service and connected devices post-pandemic have reached new heights. With all that comes concerns over security and passwords where smart technology systems can act as an insurance policy. 

One in three people feel overwhelmed by managing their own devices and almost 40% of connected devices are returned after people attempt to install the products themselves. There is a yearning and desire to simplify and streamline our relationship with home technology, but people do not want to do it or do not know how. Now, they can call Daisy. 

Watch Bullish Managing Partner Michael Duda in conversation with Daisy Co-Founder Hagan Kappler below.

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