Investments in wireless technology maintained strong growth recently and are bucking the general venture capital investment trends that have witnessed overall decline from 2000 to 2005. The portion dedicated to wireless investments is on the increase, and will continue to do so, hitting an all-time high in 2006 says a report by telecom industry research firm visiongain.
Visiongain expects the movement towards financing wireless start-ups outside the US to grow, as major funds are earmarking funds for start-ups in India and China.
During 2005, 152 wireless-related companies received $1.3 billion in funding, and accounted for seven per cent of total VC investment last year, a figure that will rise in 2006 and beyond. The bulk of telecom investments include wireless and related technology, networking, infrastructure, semiconductors, mobile computing, content and services.
"Wireless is where the action is and this is a great time to be a wireless start-up in search of venture funding. As the US public markets remain weak and private equity investing grows outside the United States, we will see many more IPOs of wireless companies taking place in the public markets outside the United States," said visiongain analyst Lynne Gregg.Venture-backed M&As in the telecom and wireless sector remained strong in 2005 and all indicators point to continued strength in this area in 2006.
Visiongain expects the movement towards financing wireless start-ups outside the US to grow, as major funds are earmarking funds for start-ups in India and China.
During 2005, 152 wireless-related companies received $1.3 billion in funding, and accounted for seven per cent of total VC investment last year, a figure that will rise in 2006 and beyond. The bulk of telecom investments include wireless and related technology, networking, infrastructure, semiconductors, mobile computing, content and services.
"Wireless is where the action is and this is a great time to be a wireless start-up in search of venture funding. As the US public markets remain weak and private equity investing grows outside the United States, we will see many more IPOs of wireless companies taking place in the public markets outside the United States," said visiongain analyst Lynne Gregg.Venture-backed M&As in the telecom and wireless sector remained strong in 2005 and all indicators point to continued strength in this area in 2006.