The Belkin division responsible for developing the excellent Phyn Plus smart water shut-off valve has been acquired by an investor group led by contractor and TV personality Jonathan Scott (HGTV’s Property Brothers).
The announcement is the latest sign that Belkin, which brought the Phyn Plus to market back in 2018, is rapidly losing interest in developing new smart home products following its own acquisition by Foxconn. Belkin has already discontinued many of its Wemo-brand smart home products, and it “paused” its efforts to develop Matter-compatible products in early 2023.
We’ve praised both the first- and second-generation Phyn Plus devices for their ability to not only warn homeowners of leaky or burst pipes, but to automatically take action to shut off a home’s main water supply to prevent the catastrophic damage that can result.
In an exclusive telephone interview with Scott and Phyn CEO Ryan Kim late last week, Scott described himself as a “technology nut” and expressed his admiration for the Phyn Plus, which he said he’d previously installed in his own home as well as in a guest house and in his parents’ home.
Celebrity contractor and TV personality Jonathan Scott is leading a group of investors buying Phyn from Foxconn’s Belkin.
Scott Brothers Global
“One of the benefits of being on the air for as long as we have is that when something feels ‘off’ to me, I have to dig in. My brother [Drew Scott] once spent $3,000 to put in a water leak-detection system in his own home, but if it detected a leak and shut off your water, you had to be there to turn it back on. There was nothing like Phyn at the time.”
Asked why more consumers haven’t already installed products like the Phyn Plus, Scott replied “Sometimes you can tell people all the benefits in the world that a product has to offer, but they still don’t see the value.”
Scott continued: “People hate to spend money on what they don’t see, but eliminating the risk of a flood [caused by a pinhole leak or a burst pipe] is so worth it. [My family has] already recouped 10 times the value of the Phyn devices we’ve installed just based on the kids leaving the tap on or a toilet handle getting stuck. The Phyn Plus is one of the greatest kept secrets that no one knows about.”
The Phyn Plus leak detection and smart water shut-off valve also tracks household water consumption patterns.
Michael Brown/Foundry
Phyn CEO Ryan Kim said the acquisition “will unlock not only massive awareness in the consumer space but also increased adoption by the insurance industry.”
Given the average cost of a water damage claim stemming from a leaking or burst pipe is around $12,500, many insurance companies already offer policy discounts to homeowners who install water leak detections systems with smart shut-off valves, such as the Phyn Plus and Moen Flo.
Scott believes the insurance industry will eventually move beyond just offering homeowners incentives to install such products. “I think in a matter of years,” he said, “all insurance companies will require this type of leak detection and smart water shut-off [as a condition of coverage].”
Phyn has revenue streams beyond selling its hardware, according to Kim. “Phyn is not just a hardware company.” he said “It’s also a data company. There’s value in the data we’ve collected from the 2.5 billion [water-related] events we’ve collected. The data is anonymized—we don’t track individual homes—but we can see trends on a regional basis, which can help insurance companies and utilities understand trends to offer better services. It’s exciting for me that this powerhouse group came together.”
In addition to Scott, the investor group acquiring Phyn includes Intuit founder and Quicken developer Tom Proulx, who will serve as an advisor and board member; Silicon Valley venture capitalist and Microsoft board member David F. Marquardt; and Allen Sands, founder of Icon Builders, a construction company focused on renovating affordable housing.
A source has told us the deal is worth “up to $24.9 million U.S. dollars.”