Reports

Q1 2016 VentureDeal Quarterly Venture Capital Report

Telecom - Mobile - Wireless - Communications

 

Telecommunications, Wireless, Mobile and Communications technology startups raised $1.3 billion during Q1 2016, representing an increase of 65% vs. Q3 2015. A total of 99 companies received funding, representing a 10% drop in the number of companies funded vs. Q3 2015.

 

Telecom

 

The Telecom sector reversed its previous quarterly increase in funding, with no companies receiving funding - a first in more than eight years of activity.

 

Telecom Funding History - to 1st Quarter 2016

 

 

Wireless

 

14 Wireless technology companies raised $234 million during the quarter, an increase of 113% in dollar volume over the previous quarter and a slight increase in the number of companies receiving funding.

Tarzana, California-based FreedomPop secured the largest round of the quarter, receiving $50 million in new investment. The company said it would use the proceeds from the financing to expand its coverage footprint. Investors in the round were not named.

Federated Wireless raised $22 million in its Series A round of equity capital from a syndicate of investment firms. The company says it will accelerate the development of its cloud hosted data analytics and intelligence platform that “provides access to the real-time management of shared spectrum made possible through SAS.”

 

Wireless Funding History - to 1st Quarter 2016

 

 

Mobile

 

The Mobile sector reversed its previous quarterly funding decrease result, with 69 companies securing $859 million in new funding, representing a 49% increase in funding amounts versus the previous quarter. The number of companies funded decreased by 22%.

New York-based mobile company Foursquare landed $45 million from an investor syndicate led by previous investor Union Square Ventures at a reported valuation of $250 million. The company said that the infusion would allow it to take advantage of the demand that it perceives to be in the marketplace for its solutions.

At the seed stage, Boston, Massachusetts-based Flyp raised $5.8 million in capital for its application that enables users to have multiple telephone numbers on a single mobile device. The investment syndicate members were not disclosed, nor was how the company intends to use the funding proceeds.

 

Mobile Funding History - to 1st Quarter 2016

 

 

Communications

 

The Communications sector raised $203 million between 16 companies during the quarter, representing a dramatic increase in amounts raised and a quadrupling in the number of companies funded versus Q3 2015.

Fuze secured $112 million in Series E equity capital from a syndicate of venture capital firm investors. The company has developed enterprise voice over IP solutions and says that it plans to use the funding proceeds to expand mostly outside of the US in Europe and other regions.

New York-based Roger garnered $1 million in seed funding from Social Capital and other undisclosed investors.  The company has developed a “voice messaging service that makes talking with family and friends easy and fulfilling…Conversations on Roger sound better than phone calls even when you’re on the go or driving.”  Proceeds purposes from the financing were not disclosed.

 

Communications Funding History - to 1st Quarter 2016

 

 

Table 1

Venture Capital Funding - 1st Quarter 2016

 

Industry

 

 

Total

Disclosed Funding

% Change

Vs. Prior

Quarter

Number of

Companies Funded

% Change vs. Prior Quarter

Telecom

$ --

- %

-

-  %

Wireless

$234 million

+ 113 %

14

+ 8 %

Mobile

$859 million

+ 49 %

69

- 22 %

Communications

$203 million

-- %

16

+ 300 %

Total

$1.3 billion

+65 %

99

- 10 %

 

 

This material has been prepared and issued by VentureDeal.  The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate in the future or complete, and it should not be relied upon as such.  It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity.

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