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Summary:

Eight years and $100 million after its founding, Aerohive debuted on the New York Stock Exchange.

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photo: Getty Images

Enterprise Wi-Fi vendor Aerohive Networks debuted on the New York Stock Exchange on Friday under the ticker HIVE after pricing its shares at $10 last night. The company raised its original target of $75 million through the initial public offering. Its shares, however, fell in value by 9 percent in morning trading.

Aerohive operates in a very crowded enterprise Wi-Fi market dominated by Cisco Systems and Aruba Networks but with a dozen other specialist players vying for market share. Aerohive sells its own access points, but it tries to differentiate itself from the pack by not offering a hardware Wi-Fi controller, which would normally manage all of the nodes in a corporate wireless network. Instead Aerohive has moved its controller to the cloud and sells it to businesses as a managed service.

Aerohive's access point

Aerohive’s access point

Since it was founded in 2006, Aerohive has raised about $100 million in venture capital. Its principal investors are Lightspeed Venture Partners (20.4 percent), New Enterprise Associates (13 percent), Kleiner Perkins Caufield & Byers (11 percent) and DAG Ventures (8.4 percent).

  1. Not quite. They didn’t move the controller to the cloud, they split it up and run it on all the APs so they work collaboratively. The cloud component is a management service that only needs to talk with the APs to push out changes.

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