Reports

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Venture Capital Funding Quarterly

Telecom • Wireless • Mobile • Communications

2nd Quarter, 2009 – United States

Published by: VentureDeal

Summary

Telecommunications, Wireless, Mobile and Communications technology startups raised $204 million during Q2 09, a decrease of 52% from the previous quarter. 37 companies received funding, an increase of 3% quarter over quarter. Previously, these four sectors showed an increasing trend of funding in the aggregate. The current quarter indicated a major decrease in funding amounts.

As one bright spot, Wireless companies indicated financing volume growth, while Telecom firms showed the sharpest decline in dollar volume terms of funding (- $127 million) among the four sectors.


Funding Activity

Telecom

The Telecom sector showed a dramatic decrease in funding, with a 64% reduction in funding amounts between a 100% increase in the number of companies funded during the quarter. As in previous quarters, relatively few companies received the lion's share of the funding.

The primary funding event during the quarter was for Telx, which received $43.5 million in a new round of financing. The company operates a variety of co-location centers focused on facilitating interconnections between networks.

Peerless Network secured a little over $10 million in an unpublished financing round. Peerless is also in the telecommunication interconnections space. It says that it simplifies the interconnections between networks.

Wireless

13 Wireless technology startups raised $96 million during the quarter, an increase of 35% in dollar volume and an increase of 44% in the number of companies receiving funding versus the previous quarter. This significantly reverses a recent trend of funding amount decline.

The largest financings during the quarter were for Tendril Networks and Meru Networks, which both raised $30 million each. Tendril is deploying technology that it says "bridges the gap between wireless sensor and control networks and programmers."

Meru Networks is developing wireless technology to enable the "all wireless enterprise." The company did not say how it would use the funding proceeds.

Stoke secured $15 million in its fourth round of financing, which included corporate investors. Stoke said that it would use the funding proceeds to "support its rapidly growing installed base and commercial carrier trials with top carriers."

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