2021 YEAR IN REVIEW

Looking back on 2021, we reflect on another year of extraordinary challenges as we continue to navigate the new normal. Despite the challenges, 2021 also represented a year of great resilience.

2021 was one of Cisco's most active years in acquisitions and investments in a virtual world. The Corporate Development and Cisco Investments organization is unique in that we combine Mergers & Acquisitions and venture investment into a single cohesive team that consistently leads with strategy and thought leadership.

In 2021, we closed 11 global acquisitions across six countries, including Acacia Communications, one of Cisco's most significant deals in recent years. We made investments in 31 startups and venture funds worldwide. Each acquisition and investment aligns with and helps accelerate Cisco's strategic innovation pillars – Secure Agile Networks, Optimized Application Experiences, Future of Work, Internet of the Future, End-to-End Security, and Capabilities at the Edge.

Over the past year, we increased our efforts to engage and strengthen relationships with startups, customers, and venture capital partners. Our goal is to create connections and value between these groups to further growth and innovation. In 2021, our team made over 200 introductions to customers for our portfolio companies and collaborated with dozens of venture capital partners to source hundreds of startups. Our team hosted a series of roundtable discussions with Cisco's top enterprise customers to understand and help resolve their pain points through innovative solutions from our portfolio companies. Furthermore, we hosted several successful virtual events, each shining a light on Cisco's innovation and growth strategy across our business, including Magnetic Security, Magnetic Cloud, and Magnetic IoT. Our team also produced our annual CISO Survival Guide, a comprehensive report on emerging cybersecurity trends and the startups that are transforming the industry.

Over the past year, I was continually amazed by our team's resilience and the empathy they have shown to our founders, partners, and fellow Cisco colleagues.

As I reflect on 2021, I am proud of our team's ability to adapt to ongoing and new challenges. We have made great strides to level the playing field in the technology startup and venture capital ecosystems. We invested in and acquired innovative companies that will accelerate digital transformation at a global scale and help build an inclusive future for everyone.

While the future may seem uncertain, our resilience and strength as a team will continue to carry us through any challenges that lie ahead.

Derek Sig1

Derek Idemoto

SVP, Corporate Development and Cisco Investments

BY THE NUMBERS

2021 was a record year of acquisitions and investments for the Cisco Investments team. We continued to identify and invest in technology that will help connect the world and build an inclusive future. We expanded our ecosystem with companies that are compatible with Cisco's culture, possess strong talent and share our vision for the future of technology.

In this report, we highlight some of the remarkable companies we've brought into the Cisco ecosystem, by investment or acquisition, over the past year.

Acquisitions
Investments
Exits
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graph1 EXITS

LEADERSHIP INSIGHTS

Cisco Investments’ leadership team share their perspectives on 2021 and what lies ahead in 2022.

"In 2021, ‘hybrid work’ became the new normal, eliminating the distinction of ‘mobile workers’ and leveling the playing field for every employee and experience across the enterprise. This decentralized hybrid environment is not about bringing employees to the data but bringing data to employees. It’s about offering choice and flexibility in how we collaborate – no matter where you are or what technology you’re using. To deliver these experiences, in an especially dynamic year for fresh innovation and startups, we actively approached organic and inorganic innovation – with five acquisitions and 14 investments in the security and collaboration spaces, extending the WebEx suite and the SecureX platform."

Janey Hoe

Vice President

"Worldwide, there are still nearly 3 billion people without adequate internet service. In 2021, we focused on helping operators lower costs, giving them the reach they need to tackle unaddressed and underserved markets. The acquisition of Sedona Systems last year, together with the Silicon Photonics advancements we made with the Luxtera and Acacia acquisitions, helped us launch Cisco’s Routed Optical Networking (RON) Solution. Cisco’s RON Solution helps unify the IP and Optical layers, dramatically lowering costs for our operators.

The second area of focus is to help our operators tap into newer sources of revenue. With our investment in Qwilt, we jointly launched CDNaaS that brings the operators into the content delivery ecosystem.

By laying the groundwork with the Sedona acquisition and Qwilt investment, Cisco is in a great position to help our operators bridge the digital divide in 2022."

Aleem Rizvon

Vice President

“Looking back on 2021, two major shifts come to mind: the emergence of Machine Learning Ops or ‘MLOps’ platforms, with companies like Cogniac making it easier for data scientists and engineers to inject AI into business operations, and the adoption of serverless architecture delivered to the market by companies like TriggerMesh. These paradigms are only going to accelerate in 2022, helping businesses drive their automation and agility goals without having to think about managing every individual component of their underlying multi- vendor infrastructure as their workforce continues to work through a hybrid working environment.”

Derek Idemoto

Senior Vice President

“There’s no way to capture the uniqueness of 2021 succinctly. Instead, I’ll focus on the micro-trends that continue to define our space, especially this past year. We saw a milestone in the maturation of cloud-native business models, heralded by the IPOs of Confluent, GitLab, and our portfolio company HashiCorp. Data, increasingly driving business decisions, continued to drive product innovation in BI workload-focused offerings (e.g., Dremio’s Lakehouse functionality). In contrast, Machine Learning technologists continued to address the operational chokepoints of the AI chain (e.g., DataRobot acquiring Algorithmia). While here at Cisco, we acquired Epsagon, Replex, and others to expand the foundations of our Full Stack Observability strategy.”

Noah Yago

Senior Director

ASPIRE FUND

In 2020, Cisco Investments launched the Aspire Fund, with an initial commitment to invest $50 million into diverse-led startups and venture funds over five years.

The Aspire Fund is designed to accelerate our efforts to create an inclusive ecosystem for diverse-led founders and venture leaders. Over the past year, Cisco Investments has made several notable investments, including participating in Acrew Capital’s new venture funds totaling $680M. To learn more about our 2021 Aspire Fund investments, take a look at our announcements below.

We made positive strides in 2021, and 2022 promises to be an even more exciting year for Aspire Fund.

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IN THE SPOTLIGHT

News, Insights & Highlights from our team and our startups.

EVENTS

We hosted engaging, live virtual summits featuring established and emerging technology leaders sharing their unique insights. These events are available to watch on-demand.

2021 WAS ANOTHER YEAR OF GREAT RESILIENCE AND MOMENTUM

We look forward to working with brilliant founders, executives and partners to innovate and build an inclusive future in 2022.

Disclaimer: Nothing presented herein is intended to constitute investment advice, and under no circumstances should any information provided herein be used or considered as an offer to sell or a solicitation of an offer to buy an interest in any investment fund managed by Cisco Investments. Cisco Investments does not solicit or make its services available to the public.

Due to various risks and uncertainties, actual events, results or the actual experience may differ materially from those reflected or contemplated statements above. The investments and exits identified and discussed herein do not represent all of the exits or investments made or recommended by Cisco Investments and may not be representative of any current or future investments. The performance of these investments is not necessarily indicative of the performance of all investments made or recommended by Cisco Investments. It should not be assumed that any future investments will be profitable or will equal the performance of the companies identified herein. No guarantee of investment performance is being provided and no inference to the contrary should be made. Past performance is not indicative of future results.