TMCNet.com: Venture capital funds globally are chasing wireless deals and India is also going to get a bigger share of it.
According to a report by telecoms industry research firm visiongain, investments in wireless technology have maintained a strong growth. “The portion dedicated to wireless investments is on the increase, and will continue to do so, hitting an all-time high in 2006.
“Wireless is where the action is and this is a great time to be a wireless start-up in search of venture funding,” says visiongain analyst Lynne Gregg. “The focus of private equity investors is squarely on the rapidly growing, global wireless market. Longer term, we expect the movement towards financing wireless start-ups outside the US to grow, as major funds are earmarking funds for start-ups in Asian countries, such as China and India.”
According to the report entitled “Venture capital in wireless and telecoms: Funding technology innovation”, Wireless was a significant growth sector for venture capital investment in 2005. During 2005, 152 wireless-related companies received $1.3 billion in funding, a 24 per cent increase over 2004’s $1.1 billion. Wireless accounted for 7 per cent of total VC investment last year, a figure that will rise in 2006 and beyond. The bulk of telecom investment today – around 60 per cent – is in wireless and related technology, including networking, infrastructure, semiconductors, mobile computing, content and services.
Also read: Where the Money Is in Wireless: S&P’s Ken Leon says the sector looks strong, with mobile music and TV driving sales.