Are Telecom Start Ups Back in favor?


Are telecom start-ups back in favor with venture capitalists? Or not? I am a tad confused – for on the same day I have read two conflicting reports about VC and how they view telecom start-up investments. Network World took a day trip to Sand Hill Road, and met with folks at Lightspeed Venture Partners, and Mayfield among others and walked away with an impression that while service providers are still out of fashion, there is room for new innovation when it comes to enterprise networking gear. Folks like Foundry and Extreme Networks are not innovating enough. So you would think that things are looking up… right? Well not really according to this report in Light Reading. The report says that if you are developing products for carriers, you are out of luck because the highly concentrated nature of the market means less room to grow. So where does that leave entrepreneurs really? Doing what they have done all these years – innovating and not paying any attention to what VCs think.

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