Israeli indoor navigation startup Shopcloud is in talks with giant electronics manufacturer Samsung regarding an acquisition of the company. According to several sources who are familiar with the details, the founders of Shopcloud met with Samsung’s VP of acquisitions in early last week and are already talking prices of $80M to $90M.
The price might seem a little bit high for such a young company that never even launched a product, but if you consider the working demo these guys unveiled a couple of months ago it seems that they might have actually figured out what everyone else is talking about.
For the Israeli startup, a $80-90M sale would be considered a great exit, after it was founded less than two years ago by Gil Devora, Gilad Waksman and Michael Bar Zeev and raised under a million dollars from private investors to date.
Its about Knowing the customer… Inside-out
Shopcloud is a micro-geolocation startup that created Inside, an indoor location app that they claim will change the landscape of the navigation industry. The technology relies entirely on sensors built into your phone for a cheaper and more accurate solution to knowing where you are indoors, exactly.
The technology is accurate to the sub-meter level, as compared to most other hardware based solutions limited to the 1-6 meter range. Inside leverages whatever it can from the full suite of onboard sensors inherent in any smartphone to provide this kind of accuracy. Camera sensitivity, microphone feedback , gyroscope etc.
At this point, Shopcloud’s patent pending technology isn’t actually available for end users. The company is currently in the process of signing up malls and other locations around the globe to be mapped for its service and at the same time, Inside has developed a complete suite of tools that will allow location owners to interact with users and provide them with valuable location specific information.
We’ve reached out to both Samsung and Shopcloud for comment. Shopcloud has declined to comment on the story and we have yet to receive a response from Samsung. We will update if and when we hear from them.