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.
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).