Venture investing in networking equipment is coming back into vogue. It started as a cyclical play on an eventual resurgence in carrier spending, plus a response to consumer adoption of broadband services. Recent events, however, like the recent air terrorism scare, make it even more interesting. Web conferencing, IPTV, etc., are all soaking up bits, and doing it faster than ever in a network fabric that is making an abrupt transition to gigabit and all-IP.
But things have changed since the protracted technology meltdown of the early 2000s. Increased carrier spending and new telecommunications applications are prompting a resurgence of interest in the industry.
…According to a MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, VC investing in networking and equipment has been on the rise since late last year. Investments in the industry have increased 60 percent since the fourth quarter of 2005.