How was Cisco Systems co-founded?

Cisco Systems was co-founded by Sandy Lerner and Len Bosack in the early 1980s while they were part of a group of graduate students at Stanford University. The company was born out of the challenge of enabling computers in different parts of the campus to communicate, an issue that was significant at the time 1 2.

They decided to start their own company after realizing they could not pursue their project within the university due to institutional constraints. With just a $5 bill, which was the cost to register the company with the California Secretary of State, they founded Cisco Systems. The name 'Cisco' was the 36th attempt and is derived from San Francisco, symbolized by the logo of the Golden Gate Bridge 3 2.

The initial funding for the company came from personal sacrifices, including mortgaging their home and using credit cards. Their first customers were significant institutions like Hewlett Packard Laboratories, Rutgers University, and Boeing, which helped in establishing a reputable client base early on 4.

Despite various challenges, including legal disputes with Stanford over technology use, Lerner and Bosack managed to negotiate a fair royalty agreement and continued to grow the company 4. The success of Cisco is attributed to a combination of hard work, intelligence, and a good deal of luck 5.