Ignition to Raise Additional Capital in Early 2001, CEO Says
--From AOL.-- Cooters
Bellevue, Washington, June 22 (Bloomberg) -- Ignition Corp., which finances companies developing wireless Internet software and hardware, plans to raise additional capital in 2001 through a private stock sale, said Brad Silverberg, chief executive.
``Early next year we'll probably go through another round of financing,'' Silverberg said following a speech yesterday to the Harvard Business School Club of Puget Sound. He declined to comment on how much the company wants to raise or potential investors.
Ignition was founded in March by Silverberg and seven other former Microsoft Corp. executives and two executives from the former McCaw Cellular Communications. The founding partners contributed $40 million and $100 million came from outside investors led by Qualcomm Inc. and included Softbank Venture Capital and Madrona Venture Group.
The Bellevue, Washington-based company is betting the mobile Internet will be the next technology tidal wave. Wireless devices that access the Internet are projected to outnumber personal computers five-to-one in the next five years, making the area a prime investment target.
``Volume equals opportunity,'' Silverberg said.
Third-Generation
Over the next several years, companies will spend billions of dollars building so-called third-generation networks to speed Internet access to cellular phones and handle video and commerce traffic. NTT DoCoMo Inc., Japan's biggest mobile phone company, plans to begin operating a third-generation network in 2001. In Europe, third-generation licenses are being sold this year. Analysts estimate it could take up to five years for third- generation networks to be established in the U.S.
Though third-generation networks are regarded as the ``holy grail'' for the mobile Internet, there will be numerous smaller technical problems to solve along the way, such as new handsets, battery power, security, and other features, which will present other investment opportunities. ``We won't bet the whole portfolio on 3-G,'' Silverberg said.
Ignition has made five investments to date. The company led a $13 million financing round for Etrieve, a closely held Portland, Oregon, company that sells mobile e-mail services to businesses. Ignition is looking at overseas investments and plans to establish foreign offices. ``At some point, there will be an Ignition Japan, an Ignition Asia, and an Ignition Europe,'' he said.
While the U.S. leads in development of the Internet, fewer than one-third of Americans use mobile phones, compared with more than half the population in Sweden, Italy, and Hong Kong, and two- thirds in Finland, headquarters of Nokia Oyj, the world's biggest mobile-phone maker.
Jun/22/2000 17:24 ET |
