Wireless Startup Funding Surges in September

Telecom News Editorials Reports Glossary

5:30 am on October 15, 2007 | Category: Business, Wireless Technology, Telecom Services, Wireless, Corporate

September was a good month for U.S. wireless startups seeking private equity funding, with a total of $690.9 million of private funds flowing into the industry according to a recent report from Rutbert & Co.

Even without considering SK Telecom’s $270 million bailout of American MVNO, Helio Inc., which skewed the numbers somewhat, private wireless funding was still up 80% from August, which saw just $234 million in new financing.

September’s massive cash infusions were felt in the carrier, operational infrastructure, and wireless semiconductor sectors, according to Rutberg.

Some of the most notable examples include DukeNet Communications’ $41 million investment in rural broadband transport carrier, Conterra Ultra Broadband; Samsung’s strategic investment in WiMAX chip vendor, picoChip Designs Ltd., and a $36.8 million round of venture capital funding for kid-friendly cell phone operator, kajeet Inc.