January 25, 2021

Founder's Note

At Latch we’ve had a simple, clear mission from the start. We create products that make spaces better places to live, work, and visit. Each Latch product is designed to help people get more out of each space, enhancing their enjoyment and efficiency in ever-increasing ways. Our entire team of engineers, designers, policy wonks, customer operations folks and more, are focused on the people who live, work, and visit these spaces. Over the past seven years, we’ve created a full-building operating system of devices, software, and services to make every building better, and we call that operating system LatchOS.

Our mission is deeply personal to me, as I’ve spent almost my entire life, from my childhood onwards, as a renter in apartment buildings. This experience motivated me and the team to start Latch, as we’ve worked to upgrade and improve the world’s oldest subscription product experience, renting an apartment. While so much of our economy has been transformed by technology, real estate has been a slow mover, and we create tools that make buildings truly better.

The result is the LatchOS ecosystem, which streamlines operations, increases net operating income for building operators, provides a better living experience for residents, and provides new efficiencies for service providers. LatchOS capabilities include smart access, delivery and guest enablement, smart home and sensor management and control, enterprise connectivity, and resident experience management. The average Latch app user interacts with the app 4.6x per day, with Latch providing capabilities used by just about everyone at a building. We’ve created all of these modules with some of the best partners out there, including Google Nest, UPS, and Realpage.

Today, more than 1 in 10 new apartments in the United States are being built with Latch, and 7 out of 10 of the National Multi Housing Council’s top developers are Latch customers. We serve a diverse mix of socioeconomic and geographic constituencies, with LatchOS enabling buildings, large and small, in more than 35 states. From affordable housing in Baltimore to garden style developments in Atlanta, luxury towers in the Midwest to historic buildings in Manhattan, LatchOS enables each of these spaces to be better. Despite this rapid and broad growth, we are still only scratching the surface. Latch currently has less than 1% market penetration, with approximately 47 million rental homes in the United States, new geographies, and new verticals ready for our expansion.

After only three full sales years in the market, we know that our products deeply resonate with building operators. Latch had amassed $304 million in cumulative Booked Revenue since we started selling our products, and we currently have a 154% net dollar retention rate. Even with the uncertainty of 2020, we achieved $167 million in Booked Revenue, which represents 49% year-over-year growth from 2019 alone. Despite these achievements, we are still at the beginning of our journey, and in 2021 we’re projecting $308 million in Booked Revenue. We believe that the excitement for new Latch products and services will lead to compounding growth in our core markets, and set the stage for rapid expansion into new markets.

While we are proud of these financial achievements, we remain focused on our core mission to make spaces better places to live, work, and visit through our products. We do that in large and small ways, pushing industry best practices forward while focusing on each detail along the way. Our commitment to being a leader in security and privacy, working for each stakeholder that interacts with our spaces, and our singular focus on the needs of our customers has enabled our success, and we’re not slowing down. While going public is an important milestone for any company, for Latch this milestone is just a midpoint, rather than an endpoint. We hope that at this next juncture you will continue on or join our mission, helping us transform more spaces together.

As we continue to add to the depth and breadth of LatchOS, delivering new experiences and devices, we believe Latch’s next chapter is going to be something really special. On behalf of everyone at Latch, we look forward to beginning this next phase of our journey as a public company, delivering on our growth potential in new and exciting ways, maximizing value for Latch shareholders, and making an ever-increasing number of spaces better.


Luke Schoenfelder
CEO & Cofounder

This letter relates to a proposed transaction between Latch and TSIA. This letter does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. TSIA intends to file a registration statement on Form S-4 that will include a proxy statement of TSIA and a prospectus of TSIA. The proxy statement/prospectus will be sent to all TSIA and Latch stockholders. TSIA also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of TSIA and Latch are urged to read the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction.

Investors and security holders will be able to obtain free copies of the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by TSIA through the website maintained by the SEC at www.sec.gov [sec.gov]. In addition, the documents filed by TSIA may be obtained free of charge from TSIA's website at www.TSIAcorp.com [tsiacorp.com] or by written request to TSIA at TS Innovation Acquisitions Corp., 45 Rockefeller Plaza, 7th Floor, New York, NY 10111.

TSIA and Latch and their respective directors and officers may be deemed to be participants in the solicitation of proxies from TSIA’s stockholders in connection with the proposed transaction. Information about TSIA’s directors and executive officers and their ownership of TSIA’s securities is set forth in TSIA's filings with the SEC, including TSIA’s Registration Statement on Form S-1, which was filed with the SEC on November 5, 2020. To the extent that holdings of TSIA’s securities have changed since the amounts printed in TSIA’s Registration Statement on Form S-1, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.

This letter contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Latch and TSIA, including statements regarding the benefits of the transaction, the anticipated timing of the transaction, the services offered by Latch and the markets in which it operates, and Latch’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this letter, including but not limited to: (i) the risk that the transaction, including the contemporaneous private placement of equity securities (the “PIPE investment”), may not be completed in a timely manner or at all, which may adversely affect the price of TSIA’s securities, (ii) the risk that the transaction may not be completed by TSIA’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by TSIA, (iii) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the agreement and plan of merger by the stockholders of TSIA and Latch, the satisfaction of the minimum trust account amount following redemptions by TSIA’s public stockholders and the receipt of certain governmental and regulatory approvals, (iv) the lack of a third party valuation in determining whether or not to pursue the proposed transaction, (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the agreement and plan of merger or the termination of any PIPE investor’s subscription agreement, (vi) the effect of the announcement or pendency of the transaction on Latch’s business relationships, performance, and business generally, (vii) risks that the proposed transaction disrupts current plans of Latch or diverts management’s attention from Latch’s ongoing business operations and potential difficulties in Latch employee retention as a result of the proposed transaction, (viii) the outcome of any legal proceedings that may be instituted against Latch, TSIA or their respective directors or officers related to the agreement and plan of merger or the proposed transaction, (ix) the amount of the costs, fees, expenses and other charges related to the proposed transaction and PIPE investment, (x) the ability to maintain the listing of TSIA’s securities on NASDAQ, (xi) the price of TSIA’s securities may be volatile due to a variety of factors, including changes in the competitive and highly regulated industries in which Latch plans to operate, variations in performance across competitors, changes in laws and regulations affecting Latch’s business and changes in the combined capital structure, (xii) the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities, including the conversion of pre-orders into binding orders, (xiii) the amount of redemption requests made by TSIA’s public stockholders, (xiv) the ability of TSIA to issue equity or equity-linked securities in connection with the transaction or in the future, (xv) possible variances between the unaudited historical financial information Latch presents and its audited financial statements, when they become available and (xvi) the impact of the global COVID-19 pandemic on any of the foregoing. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of TSIA’s Registration Statement on Form S-1, the registration statement on Form S-4 and proxy statement/prospectus described below and other documents filed by TSIA from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Latch and TSIA assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither Latch nor TSIA gives any assurance that either Latch or TSIA will achieve its expectations. The inclusion of any statement in this communication does not constitute an admission by Latch or TSIA or any other person that the events or circumstances described in such statement are material.