US-based networking equipment manufacturer Cisco is set to invest $150m in startups over the next two-to-three years through its corporate venturing arm, Cisco Investments, it said yesterday.
The investment will be added to the $100m pledged by Cisco Investments in January for the internet of things. Cisco currently has about $2bn of assets under management including direct investments in 80 companies and limited partner positions in more than 35 funds.
The funding is intended to accelerate the development of disruptive technology markets. Areas within IT that are set to be targeted include big data and analytics, the internet of things, connected mobility, storage, silicon, the content technology ecosystem and innovation in India.
Cisco Investments laid out its intentions at the same time as it announced investments in three businesses.
In addition to investments in Ayla Networks, a developer of an agile platform for the internet of things that just closed a $14.5m series B round, and ‘web of things’ software developer Evrythng, as part of Evrything’s $7m series A round, the company has also provided an undisclosed amount of capital for US-based startup accelerator Alchemist Accelerator.
Alchemist Accelerator, run by Stanford lecturer Ravi Belani, will use the funding to expand the range of startups it works with from enterprise software to include the internet of things.
“Our ability to identify and stay ahead of market disruptions is deeply rooted in our build, buy, partner, and integrate approach to innovation,” said Hilton Romanski, senior vice president of Cisco Corporate Development.
“We gain valuable insight and an understanding of market trends through equity investments in young and interesting companies who are leading the way through new market disruptions. Our investments in Alchemist Accelerator, Ayla Networks and Evrythng align with our focus on early-stage innovation and companies focused on the internet of things.”