Property Brothers’ Jonathan Scott leads investor group buying Phyn from Belkin
The Belkin division liable for growing the superb Phyn Plus sensible water shut-off valve has been acquired by an investor group led by contractor and TV persona Jonathan Scott (HGTV’s Property Brothers).
The announcement is the newest signal that Belkin, which introduced the Phyn Plus to market again in 2018, is quickly dropping curiosity in growing new sensible dwelling merchandise following its personal acquisition by Foxconn. Belkin has already discontinued a lot of its Wemo-brand sensible dwelling merchandise, and it “paused” its efforts to develop Matter-compatible merchandise in early 2023.
We’ve praised each the first- and second-generation Phyn Plus units for his or her potential to not solely warn householders of leaky or burst pipes, however to routinely take motion to close off a house’s principal water provide to forestall the catastrophic injury that may outcome.
In an unique phone interview with Scott and Phyn CEO Ryan Kim late final week, Scott described himself as a “know-how nut” and expressed his admiration for the Phyn Plus, which he mentioned he’d beforehand put in in his own residence in addition to in a visitor home and in his dad and mom’ dwelling.
Superstar contractor and TV persona Jonathan Scott is main a gaggle of traders shopping for Phyn from Foxconn’s Belkin.
Scott Brothers International
“One of many advantages of being on the air for so long as we now have is that when one thing feels ‘off’ to me, I’ve to dig in. My brother [Drew Scott] as soon as spent $3,000 to place in a water leak-detection system in his own residence, but when it detected a leak and shut off your water, you needed to be there to show it again on. There was nothing like Phyn on the time.”
Requested why extra shoppers haven’t already put in merchandise just like the Phyn Plus, Scott replied “Typically you possibly can inform folks all the advantages on this planet {that a} product has to supply, however they nonetheless don’t see the worth.”
Scott continued: “Individuals hate to spend cash on what they don’t see, however eliminating the danger of a flood [caused by a pinhole leak or a burst pipe] is so value it. [My family has] already recouped 10 occasions the worth of the Phyn units we’ve put in simply primarily based on the youngsters leaving the faucet on or a bathroom deal with getting caught. The Phyn Plus is without doubt one of the biggest saved secrets and techniques that nobody is aware of about.”

The Phyn Plus leak detection and sensible water shut-off valve additionally tracks family water consumption patterns.
Michael Brown/Foundry
Phyn CEO Ryan Kim mentioned the acquisition “will unlock not solely large consciousness within the shopper house but in addition elevated adoption by the insurance coverage business.”
Given the common value of a water injury declare stemming from a leaking or burst pipe is round $12,500, many insurance coverage corporations already provide coverage reductions to householders who set up water leak detections programs with sensible shut-off valves, such because the Phyn Plus and Moen Flo.
Scott believes the insurance coverage business will finally transfer past simply providing householders incentives to put in such merchandise. “I feel in a matter of years,” he mentioned, “all insurance coverage corporations would require this kind of leak detection and sensible water shut-off [as a condition of coverage].”
Phyn has income streams past promoting its {hardware}, in accordance with Kim. “Phyn is not only a {hardware} firm.” he mentioned “It’s additionally a knowledge firm. There’s worth within the information we’ve collected from the two.5 billion [water-related] occasions we’ve collected. The information is anonymized—we don’t monitor particular person houses—however we are able to see traits on a regional foundation, which may also help insurance coverage corporations and utilities perceive traits to supply higher companies. It’s thrilling for me that this powerhouse group got here collectively.”
Along with Scott, the investor group buying Phyn consists of Intuit founder and Quicken developer Tom Proulx, who will function an advisor and board member; Silicon Valley enterprise capitalist and Microsoft board member David F. Marquardt; and Allen Sands, founding father of Icon Builders, a development firm centered on renovating inexpensive housing.
A supply has advised us the deal is value “as much as $24.9 million U.S. {dollars}.”