Today Meraki announced its acquisition by Cisco. Doug Leone has a great post up. You have to read it in its entirety, but here’s the money quote.
The biggest challenge came early on in deciding where to aim the product. We wasted nearly a year evaluating different markets: entrepreneurial building owners, ad-supported Wi-Fi, retail, SMEs, large corporations, even the developing world. We eventually settled on SME, for product fit and speed of revenues. From there Meraki took off.\
They built a world class product, with a crack team from MIT and still “wasted” a year on getting to the right market. For a $Billion+ exit.