Cascadia Capital, an investment bank serving middle market clients globally, today announced it acted as the exclusive financial advisor to Deako Inc. (“Deako”), the creator of plug-n-play light switches, in a growth equity capital raise.
Deako’s plug-n-play light switches save homeowners hundreds of dollars in electrician costs after move-in by making it easy to personalize a home with dimmers, timers, motion sensors, or smart light switches.
Deako was founded in 2015 by CEO Derek Richardson after questioning a neighbor (who happened to be a homebuilder) why he was not including smart lighting in their new home. He learned that electricians actively deterred builders from installing smart light switches during the construction phase because of the added cost and complexity caused by different homeowner needs. Homeowners want to personalize their lighting and no hard-wired products would ever be exactly what people wanted. Deako sought to find a solution by creating products that electricians could install as easily and cost-effectively as a traditional light switch, but the homeowner could easily change. The idea for the plug-n-play light switch was born.
Over the past six years, Deako has been selling their products to hundreds of builders and in late 2020, was awarded a three-year exclusive agreement with the largest builder in the U.S. Deako already had contracts with many other large and mid-sized builders, but this new deal firmly cemented the company as an industry leader.
“This past year has been a crucial year for Deako,” said Mr. Richardson. “We have had double-digit monthly growth, signed large commercial deals, and introduced an entire suite of new products. The company is on an amazing growth trajectory.”
The new capital will support the Deako’s manufacturing growth, expand production from two to three countries, increase the local sales teams, and further the product roadmap with new complementary light switch products.
“Deako has an innovative solution that addresses the needs of both builders and new homeowners,” noted Jamie Boyd, Managing Director at Cascadia Capital. “Many builders differentiate themselves by allowing homeowners to get the exact home they want. Deako adds to that value proposition, allowing homeowners to easily change their lighting without the cost and hassle of bringing in an electrician. The business model enabled by Deako’s patented modular design is unique among light switch manufacturers that have been making the same basic switches for 50 years.”
“Companies like Deako, who develop innovative products and future proof their business models will set themselves apart in the rapidly growing Internet of Things industry,” added Yee Lee, Senior Vice President at Cascadia Capital.
For more information about this transaction, please the contact Cascadia Capital deal team:
Senior Vice President