Venture Capital Funding Quarterly
Telecom • Wireless • Mobile • Communications
2nd Quarter, 2008 – United States
Published by: VentureDeal
Telecommunications, Wireless, Mobile and Communications technology startups raised $603 million during Q2 08, a reduction of 18% from the previous quarter. 70 companies received funding, an increase of 8% quarter over quarter. This continues the recent trend of lower funding for the four sectors in the aggregate.
Wireless companies continue to show financing amount growth throughout this funding downturn. Additionally, Wireless firms continue to receive the greatest funding amount among the four sectors.
The Telecom sector showed a 43% growth in funding amounts and a 20% growth in the number of companies funded during the quarter. Two companies received the lion's share of the funding. Genband raised $25 million for its IMS-based solutions that allow service providers to get the most out of their legacy infrastructure and transition over to next generation platforms.
Telecom Transport Management (TTM) landed $20 million in further funding to help it finance the continued expansion of its high capacity backhaul networks. TTM provides networking capacity for companies needing managed transport services.
Elanti Systems received $1.4 million dollars for its intelligent routing software solutions for the telecommunications industry. Elanti provides management solutions that focus on "service assurance and visualization for IP VPN customers."
33 Wireless technology startups raised $345 million during the quarter, an increase of 16% in dollar volume and 22% in the number of companies receiving funding, over the previous quarter. This continues a trend of consistent and healthy growth in the sector.
Large financings during the quarter included Ubidyne, which received $34 million for its standards-agnostic micro radio technology that is integrated with wireless antennas. The company says the benefit of this technology is that it reduces amplifier cost for wireless telecom companies and improves radio performance and coverage.
Jitterbug, the trade name for GreatCall, has developed a simple cell phone for the elderly market segment that allows them to take advantage of simplified wireless services. The company raised $38 million in its series C funding round.
ExteNet Systems secured $27.5 million to enable it to expand its installation of distributed antenna system networks for wireless service providers to help them expand their service areas via in-building networks as a solution to wireless coverage problems.