Qualcomm funds back Silverberg wireless Net startup
BLOOMBERG in Washington
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Brad Silverberg and nine former executives of Microsoft and McCaw Cellular have won backing from Qualcomm and Softbank Venture Capital for a company they have formed to invest in wireless Internet technology.
Mr Silverberg, who led the development of Microsoft's Windows 95 operating system and Internet Explorer browser, will be chairman and chief executive of Ignition, which will have capital of US$140 million.
Qualcomm, developer of the world's fastest-growing cellphone standard, will be the largest single shareholder, though the founders collectively will own a majority stake.
Wireless devices with Internet access are set to outnumber personal computers in coming years, making the area a prime investment target.
Qualcomm has been looking to tap into the market, which Cahners In-Stat Group forecasts will attract 23.9 million United States users by 2003, up from 1.73 million last year.
"Wireless Internet is the next 'It'," said Ignition managing director Jonathan Roberts, who likened the Web-based wireless arena to other major technological advances such as the personal computer and the Internet.
Ignition is part of an expanding network of Internet-related startups and early-stage investment firms in Seattle, the US' second fastest-growing venture-capital market behind New York.
The company modelled itself after Internet Capital Group, which invests in business-oriented electronic-commerce companies and forms networks of companies to work together, Mr Roberts said.
Ignition will provide equity in the company to senior managers of the firms in which it invests as an incentive to work with other Ignition-backed organisations.
Mr Roberts also said the company had no plans to go public for now.
While Ignition would mainly fund, advise and help build startups focused on wireless Internet infrastructure, software, services and devices, it also might acquire more mature companies, he said.
Services that will be developed could include providing mobile-phone users with local traffic information or retail sales.
Qualcomm earlier said it would work with Microsoft to build wireless multimedia devices using Microsoft software.
Its executive vice-president Paul Jacobs said Ignition could help speed the development of applications and services for digital data networks, which was still in the early stages. |
