Connected home startup Control4 went public this morning and is experiencing a nice bounce on the first day of trading. It priced at $16 and is trading around $19.50 right now. The valuation on this one was about 3.6 times 2012 revenue, which is pretty reasonable even if bankers have enjoyed pushing the 10X revenue valuation on asset managers with typically poor post IPO performance. I’ve said it many times but I think more reasonable IPO valuations are important because if post IPO performance is consistently good, it’ll be much easier going forward for startups to go public, which will revive the world of  venture capital.

But back to Control4. The company creates software that helps homeowners connect their lighting, security, door locks, etc. What’s interesting to me about the company is that it relies on a custom installation model where a professional aids in installation and connection. This is a very different approach when compared to the Nest thermostat or the Philips Hue lightbulb where it’s all do-it-yourself and designed to be direct to consumer. Which model will prevail?

There’s probably room for both, though I think the market for something like the Nest could be larger because, believe it or not, installing the thermostat yourself may be easier (and cheaper) than calling out an installation guy. The message that all this stuff sends to me is that if you’re going to play in the connected home game or the entire internet of things space, ease of connectivity and installation becomes critical to effectively reaching consumers.