{"id":11169,"date":"2022-11-03T22:49:08","date_gmt":"2022-11-03T22:49:08","guid":{"rendered":"https:\/\/www.insightpartners.com\/?p=11169"},"modified":"2025-02-20T13:12:23","modified_gmt":"2025-02-20T18:12:23","slug":"behind-the-investment-canary-technologies-bringing-hotels-into-the-21st-century","status":"publish","type":"post","link":"https:\/\/www.insightpartners.com\/ideas\/behind-the-investment-canary-technologies-bringing-hotels-into-the-21st-century\/","title":{"rendered":"Behind the Investment: Canary Technologies \u2013 Bringing Hotels into the 21st Century"},"content":{"rendered":"<p>Every day our lives are becoming more efficient and seamless through technology \u2013 we can tap a few buttons and meals &amp; groceries appear magically on our doorsteps, we can summon a car to take us to and from wherever we please, we can control the lighting, temperature, etc. of our homes from the palm of our hands thanks to \u201csmart home\u201d IoT devices. Wherever we look, everything is becoming more connected and automated in our personal lives. As a result, businesses are scrambling to keep up with the pace of innovation, leading to the \u201cconsumerization of B2B software\u201d \u2013 simply put, we expect the simplicity and superior UI\/UX of our consumer applications in our place of work or wherever we interact with businesses.<\/p>\n<p>In contrast, the hotel industry has been dominated by legacy software called PMS systems (\u201cProperty Management Systems\u201d) and payment processors to manage back-office\/day-to-day operations and to facilitate payments, respectively. Many of the \u201cleading\u201d solutions in the PMS space were built 20+ years ago(!) and have primarily focused on backend functionality for hotels. The \u201cfrontend\u201d of hotels has historically been overlooked as purpose-built solutions to manage, enhance, and automate the guest experience simply weren\u2019t prioritized, and that\u2019s where Canary comes in.<\/p>\n<p>From the start, Canary has taken an integration-first approach, connecting deeply into the PMS systems and payment processors to minimize disruption for their customers\u2019 workflows, while tackling a major problem for hotels and their end users \u2013 digital authorizations &amp; contracting. With Canary, customers no longer need to present a physical card or sign physical stacks of paper to authorize payments or contract with a hotel for their stay, and hotels don\u2019t have to fax\/email around authorizations in a non-compliant way or risk an employee leaving sensitive PII (\u201cPersonal Identifiable Information\u201d) laying around that could be stolen. With their Digital Auth solution, Canary validates credit cards for hoteliers, helping drive down fraud and chargebacks while unlocking a digital experience for guests:<\/p>\n<ul>\n<li>\u201c<em>We did offer the service, but it was a fax or an email. Anyone could fill out that form \u2013 there was no guarantee that someone didn\u2019t steal the card. The nice thing about Canary is that you don\u2019t have to be in front of a computer and they can sign with their finger. Canary was protecting us as a business \u2013 making sure that the card wasn\u2019t stolen\u201d \u2013 <\/em>International Hotel Franchise<\/li>\n<li><em>\u201cThe major return on investment is the secure validation of the cardholder\u2026it protects us (being the hotel) to make sure that the payment is secure\u201d \u2013 <\/em>International Hotel Franchise<\/li>\n<\/ul>\n<p>Next, Canary empowered hotels with a seamless end-to-end guest experience through their Guest Management Suite, enabling contactless check-in, guest messaging, dynamic upsells, digital tipping, and contactless checkout while unlocking significant time-savings, cost-savings, and revenue acceleration ROI:<\/p>\n<p><img decoding=\"async\" src=\"\/wp-content\/uploads\/2022\/12\/Canary-image-2.png\" alt=\"image\" \/><\/p>\n<ul>\n<li><em>\u201cIt pays for itself in terms of the add-ons that we\u2019re able to push to the customers and allow them to opt in for\u2026[We get] 1.5-2x as much in transactions as what we pay for Canary.\u201d<\/em> \u2013 Boutique Hotel Franchise<\/li>\n<li><em>\u201cThe price of Canary is less than what we would have had in chargebacks in a year, even if it was a low year, not to mention the time saving as well and the availability to take reservations that we wouldn\u2019t normally be able to because people don\u2019t have access to a printer \u2026I\u2019d say what we pay for Canary, we save probably double that.\u201d<\/em> \u2013 International Hotel Franchise<\/li>\n<\/ul>\n<p>As for the genesis of the partnership between Insight Partners &amp; Canary Technologies, the company first came on our radar way back in September 2018 after participating in Y-Combinator. In the years following, we consistently reached out to Harman &amp; SJ to start building the relationship but they were heads down building; we didn\u2019t give up and kept knocking. Ultimately, our friends at F-Prime (Gaurav Tuli) ended up leading a $15M Series A announced in February 2022, and shortly thereafter introduced us to Harman in March 2022 \u2013 nearly 3.5 years after our initial outreach (and after a global pandemic rattled the entire travel industry!).<\/p>\n<p>We could not be more thrilled to be leading Canary\u2019s $30M Series B with participation from F-Prime, Y-Combinator, Thayer Ventures, and Commerce Ventures. Now, post-investment we remain eager to scale up Canary\u2019s durable business &amp; accelerating commercialization, and to double down on Harman and SJ\u2019s vision to build a cloud-native, full suite of purpose-built software for hoteliers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every day our lives are becoming more efficient and seamless through technology \u2013 we can tap a few buttons and meals &amp; groceries appear magically on our doorsteps, we can summon a car to take us to and from wherever we please, we can control the lighting, temperature, etc. of our homes from the palm [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":12350,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,46],"tags":[],"class_list":["post-11169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","category-behind-the-investment","domain-propertytech","idea_types-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.1 (Yoast SEO v23.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Behind the Investment: Canary Technologies \u2013 Bringing Hotels into the 21st Century | Insight Partners<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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