Founded in 1997, IDIS specializes in the Digital Video Recorder (DVR) which is a device for storing recordings that CCTV cameras capture for surveillance purposes. Since its inception, IDIS has grown to become the world’s leading developer of DVRs and earning the reputation of a‘hidden champion.’ This case examines how IDIS successfully entered and competed in the DVR market when a window of opportunity opened as the recording technology evolved from analog to digital. Based on a detailed analysis of the product development and market penetration strategies of IDIS, implications for how a startup firm can compete effectively in an existing industry are drawn. Furthermore, as the video surveillance industry is recently facing another wave of technological change based on Internet Protocol(IP), the strategic responses of IDIS to transform itself into a total security solution provider are described. The implications for the set of challenges that startups face as they push for growth to new heights are discussed.