One of the hottest IPOs of the year is
Aruba Networks Inc. (NASDAQ:
ARUN), which is up 82.5% since its debut in late March. The company builds technologies to secure large corporate wireless networks. With the proliferation of devices – such as
Research in Motion's (NASDAQ:
RIMM) BlackBerry – it is a big market opportunity.
Well, another firm wants a piece of the action:
Aerohive Networks.
In fact, the company recently
raised its second round of venture capital for $20 million. The lead investor is the venerable Kleiner Perkins
Aerohive develops so-called "cooperative control" wireless LAN (WLAN) access points, which it makes it easier for companies to deploy wireless services – and at lower costs. This is done by sharing information in optimized groups, which are called "hives."
No doubt, Aerohive faces intense competition, such as from
Cisco Systems Inc. (NASDAQ:
CSCO). But in the WLAN market, there is always room for a better product.
Besides, Aerohive has a top notch management team. Keep in mind that their last deal – NetScreen – sold for a cool $4 billion to
Juniper Networks (NASDAQ:
JNPR).
To check out more recent venture capital fundings, click
here.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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