Wireless Startups Are Lining Up For Pork, Too

With the government preparing to spend billions of dollars to stimulate the economy, VCs are carefully weighing the pros and cons of having their portfolio companies go after a piece of the pie, the WSJ reports. So far, more than 2,000 requests for meetings have poured in to the Commerce Department, which will come up with the final rules for disbursing the money. Among the requests, some are coming from venture-backed startups, particularly in the field of telecom, ranging from back-end infrastructure to mobile software.

VCs and companies are grappling with the trade-offs: while the money is enticing, taking cash from the government may invite unnecessary oversight. Venky Ganesan, a managing director at venture fund Globespan Capital, told the WSJ: “Silicon Valley used to be libertarian, but we are all Keynesians now. Everybody is trying to stick their snouts in the flow of pork.” But before you start picturing Twitter or some other money-hungry start-up getting in line, it’s more likely companies that are helping to serve rural areas — a particular focus of the government’s — that will get attention.

Here’s two examples: Seattle-based TTM wants up to $100 million to fund the construction of fiber-optic networks that help wireless carriers move traffic between cell towers, including in rural areas. The other is Tropos Networks, which helps cities roll out web services, such as video surveillance and remote meter-reading, using Wi-Fi networks. Tropos is not applying for funds directly, but rather helping cities and counties apply for the stimulus.

Comments have been disabled for this post