CalSTRS, the $115bn (£81bn) California State Teachers Retirement System, is set to make a $20m co-investment in Force 10 Networks, subject to approval from the fund's investment committee.
CalSTRS investment committee meets on June 6, where approval is expected to be given for the investment. The $20m commitment, subject to the successful negotiation of legal terms and conditions, will be made through venture capital fund, NEA VIII.
NEA VIII is one of CalSTRS general partners and the investment will be in preferred stock.
NEA VIII is looking to raise $100m in this round of financing for Force 10 Networks, of which the CalSTRS $20m is part. NEA and US Venture Partners (USVP) were the original investors in and creators of Force 10 Networks. Currently, Force 10 Networks backers include NEA, USVP, Worldview, Sanmina, CalSTRS and Force10 executives.
Force10 Networks develops and manufactures switching equipment for broadband wires. Force 10 Networks has developed a 10-gigabit Ethernet (10 GbE) switch which CalSTRS believes will be the next breakthrough in broadband transmission.
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