SAN FRANCISCO—The overall decline in venture-capital investments hasn’t touched the wireless industry, according to new research from telecom industry research firm Visiongain. Indeed, the firm found wireless-directed investments have maintained strong growth and are expected to hit an all-time high this year.
Last year, VC investments in wireless totaled $1.3 billion, a 24-percent increase from 2004’s investment total of $1.1 billion, said the report. Wireless accounted for 7 percent of all venture-capital funding last year. In addition, wireless and related technologies account for about 60 percent of all telecom investments.
“Wireless is where the action is and this is a great time to be a wireless startup in search of venture funding,” said Visiongain analyst Lynne Gregg. “The focus of private equity investors is squarely on the rapidly growing, global wireless market. Longer term, we expect the movement toward financing wireless startups outside the United States to grow, as major funds are earmarking funds for startups in Asian countries, such as China and India.”
Gregg predicted an upswing in wireless initial public offerings on markets outside the United States.
