Cisco Systems, Inc. (NASDAQ:CSCO) is currently on a company-acquisition spree with a major focus on Artificial Intelligence related companies. And to make future acquisition decisions faster, the Silicon Valley Company has now decided to introduce a new independent startup fund that will be a separate venture from its parent company. Recently, the company also completed the acquisition formalities for adding the artificial intelligence-based venture “Accompany” to its list of mergers.
Jon Sakoda To Lead The New Startup Fund
Jon Sakoda will be leading the new startup fund from Cisco. From the last 12 years, Sakoda was a part of the venture firm New Enterprise Associates. There is also a possibility of additional limited partners investing money into the startup fund.
The prolific corporate acquirers of the startup which previously have used its cash reserves for acquiring different companies have this time decided to serve as the anchor limited-partner investor in this venture. Cisco has investments of hundreds of millions of dollars reserved for acquiring upcoming enterprising startups. The company has a team of 40 expert investors who have been with the company for more than 20 years planning and investing on company’s behalf. Until now this team has invested minimum $2 billion in more than 100 startups for Cisco.
Cisco Buys AI-Based Platform For $270 Million Cash
The San Jose, California-based American company recently completed the formalities for buying the AI-based relationship intelligence enterprise, “Accompany.” According to reports, Cisco paid around $270 million in cash and assumed equity awards. The new company will become a part of Cisco’s Collaboration Technology Group (CTG) and is known for its AI capabilities related to machine learning features that automate search, creation, and update the profiles of corporate executives.
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The collaboration of CTG will be lead by the CEO and Founder of the AI-based platform, Amy Chang as the vice president. Chang has immense experience in the field of artificial intelligence and her inclusion in the management is expected to help the collaboration at large. With its rapid speed of forming collaboration and acquiring new startups, Cisco is expected to soon surpass its nearest competitor Microsoft Corporation (NASDAQ:MSFT).