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Aerohive Networking seals $22.5m mezzanine financing

17 Sep 2012

Wi-fi and cloud-enabled enterprise networking developer Aerohive has secured $22.5m in mezzanine equity financing, led by Institutional Venture Partners.

Existing investors Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, New Enterprise Associates, Northern Light and Four Rivers also participated in the round.

This funding will be used to accelerate product development and increase market leadership, enabling Aerohive to capitalise on the exploding demand for its solutions, it said.

The mobile device explosion is driving increasing demand for enterprise wi-fi. According to Infonetics, the enterprise wi-fi market grew 25 per cent Q2 2012 over Q2 2011. However Aerohive is dramatically exceeding these numbers, delivering annual sales growth of over 150 percent for the last two years. Over the last year Aerohive has almost tripled its customer base, growing it to over 5,000 customers and expects to surpass an annualised sales run rate of $100m before the end of 2012.

“The mobile enterprise is forcing businesses to reevaluate their network infrastructures, making the market an attractive one for new solution providers like Aerohive,” said Steve Harrick, general partner at Institutional Venture Partners. “At IVP, we carefully select who we back based on superior technology and go-to-market strategy. We chose to invest in Aerohive because the company delivers a proven, next-generation enterprise networking solution and has demonstrated strong business momentum and rapid growth. We are excited to be working together.”

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