Financiers Drawn To Wireless StartupsFinanciers Drawn To Wireless Startups

The number of U.S. wireless Web users will increase from 4.1 million in 2000 to 96 million in 2005, according to Jupiter Media Metrix. And financiers are looking for ways to get a piece of that market by backing all sorts of wireless startups. In the first half of May, at least six such companies said they had received funding.

In its first round of funding completed midmonth, Tahoe Networks raised $38 million to help develop a networking infrastructure for mobile data networks. Meanwhile, wireless software development startup Stick Networks says it scored $12 million in series B venture capital from several angel and private investors looking to help the company get its product--an integrated voice, E-mail, personalized content package for wireless operators--to market.

Mobile messaging got a vote of confidence as EnvoyWorldWide says it received another $8 million from investors, led by Longworth Venture Partners, bringing the startup's total funding to $20 million. On a more conservative scale, investors like Bluefish Ventures and BisCom are betting on vVault, which makes wireless platform for productivity applications, to the tune of $3 million, bringing total funds raised to $7.7 million.

Using a different entrance to the wireless market was Rare Medium, which in April provided a $50 million loan to wireless software firm Motient Corp., only to decide this month that the two companies should merge and offer wireless consulting, development, and integration services to corporate customers. The companies project that as a single entity they'll generate $100 million in revenue.