Telecom networking startups are starting to become more attractive to...
Telecom networking startups are starting to become more attractive to venture capital (VC) firms after years of declining interest, said a report from market research firm Ovum. VC support for such start-ups totaled $270 million from Q3 2011 to Q2…
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2012 -- down from $796 million in 2009, according to Ovum. That decline came despite an overall recovery in VC investments, which rose from $20.1 billion in 2009 to $27.8 billion from Q3 2011 to Q2 2012. VCs have shifted their money to mobile, social media and over-the-top startups, Ovum said. Service providers are more actively funding and working with infrastructure startups, Ovum analyst Matt Walker, the report’s author, said Wednesday in a news release. But recent IPO and M&A deals indicate VCs are becoming interested in telecom again, such as VMware’s recent purchase of VC-funded Nicira Networks, he said. “The tide seems to be shifting,” Walker said. “With heightened investor interest and carrier need for solutions in such areas as small cells, network virtualization, and network optimization, telecom network infrastructure VC seems ripe for a rebound” (http://xrl.us/bnrh2w).