Venture Capital Funding Quarterly
Telecom • Wireless • Mobile • Communications
3rd Quarter, 2009 – United States
Published by: VentureDeal
Telecommunications, Wireless, Mobile and Communications technology startups raised $277 million during Q3 09, an increase of 36% from the previous quarter. 43 companies received funding, an increase of 16% quarter over quarter. Previously, these four sectors showed a decreasing trend of funding in the aggregate. The current quarter indicated a significant increase in funding amounts.
The only sector among the four that posted lower quarter over quarter results was Telecom, which continued to show a sharp decline in dollar volume terms of funding (- $44 million) among the four sectors.
The Telecom sector indicated a dramatic decrease in funding, with a 62% reduction in funding amounts between a 60% decrease 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 Vocollect, which received $15 million in a new round of financing. The company sells an open voice product platform called Vocollect Voice that literally talks people through their daily tasks and to-do lists.
Clear Access secured $6 million in its series B round of syndicated venture capital investment. Clear Access said it would use part of the funding round to develop "innovative data services that service providers can deploy remotely using the ClearVision Management System."
17 Wireless technology startups raised $162 million during the quarter, an increase of 69% in dollar volume and an increase of 31% in the number of companies receiving funding versus the previous quarter. This represents a continued improvement from the previous quarter’s funding increases.
The largest financing during the quarter was for Meru Networks, which raised $57.5 million. Meru Networks is developing wireless technology to enable the "all wireless enterprise." The financing round included a large syndicate of existing and new venture capital investors.
WeFi garnered an undisclosed amount of funding for its second investment round. WeFi is backed by Lightspeed Venture Partners and Israeli VC firm Pitango Venture Capital. The company said it would use the funding proceeds to expand its business development efforts and continue product development.
NewPath Networks secured $10 million in venture capital debt from Square 1 Bank during the quarter. NewPath operates a fiber fed wireless carrier network that improves signal strength and network capacity.