Nest inches closer to $150M finance round on $2B valuation

The company's venture round will be led by DST Global, according to Recode's Kara Swisher. Other VCs, including Google Ventures and Shasta Ventures, will also join the round.

The new Nest Protect, a smart, connected smoke and carbon monoxide detector.
The latest Nest product is a smart, connected smoke and carbon monoxide detector. Lindsey Turrentine/CNET

Nest, the smart-home startup best known for its thermostat, is closing in on some serious cash, according to a new report.

Nest is near the end of a financing round in which it will raise at least $150 million on a $2 billion valuation, Recode's Kara Swisher reported Thursday, citing people familiar with the talks. Nest could raise as much as $200 million on a $3 billion valuation, the site's other sources say.

Over the last few years, Nest has become one of the more popular companies in the smart-home business. The company was founded by Tony Fadell, a former Apple executive many credit with creating the iPod. Nest is best known for its thermostat, which learns user habits and aims at reducing energy usage. The company recently launched Nest Protect, a combined carbon monoxide and smoke alarm that can "talk" to its thermostat.

Recode didn't say when Nest might announce its financing round. There's also no word on what the company might use its funding for if it closes the deal. One can bet, though, that Nest has its sights set on other household gear that may be in need of a 21st century update.

Featured Video

Walmart's five buck LED is one of the brightest we've tested

For basic lighting needs, this bulb looks like a solid pick, but its dimming performance leaves a lot to be desired.

by Ry Crist