Daily Archives: February 26, 2010

Further Detail on Juniper’s Venture-Fund Strategy

Pursuant to my previous post on Juniper Networks’ $50-million Junos Innovation Fund, I’ve received additional information regarding the company’s venture-capital strategy.

First off, Juniper will not restrict its investments exclusively to companies with existing development efforts or products connected to the Junos network-operating system. Quoting an email reply from a Juniper spokesperson:

“Juniper will look at companies with favorable investment profiles that are building innovative products or services complementary to Juniper’s growth strategy (company forecast for +20% revenue CAGR over the next 3 to 5 years) and can benefit Juniper’s customers by improving the experience and economics of networking.”

That broadens Juniper’s investment possibilities, providing fund managers with a greater degree of choice and flexibility.

Not surprisingly, Juniper’s preference is to follow VCs rather than take the lead in the investments it pursues. That said, the company says it “will lead if it makes sense.”

Regarding the average stake Juniper intends to take in target companies, and whether it has floors and ceilings to which it will adhere in its investment strategy, the company says its typical initial investment will range between $1 million and $5 million, with participation in future rounds occurring on a pro-rata basis.