Paul Wilson, chief executive of the West of England Local Enterprise Partnership (LEP), said: "This is the single largest amount we've awarded from the £25m pot and it's exactly the type of project we want to support."
Bristol-based Blu Wireless Technology is addressing the emerging 60GHz 'WiGig' addition to the WiFi family, which will enable large video files to be transferred onto mobile phones at up to 7Gbit/s, which is 20 times faster than existing WiFi.
The firm is also applying the technology to the emerging 5G telecommunications standard.
Based in Bristol due to the world-beating expertise in wireless communications and semiconductor design in the area, the company has grown from a team of 7 at the beginning of 2013 to 17 and anticipates that by the end of 2014 it will have around 30 staff. BWT is based in the Engine Shed in Bristol, alongside a growing cluster of high tech and digital businesses.
"The firm already has a strong working relationship with the University of Bristol and these funds will ensure that these links are further strengthened," said Henry Nurser, BWT's CEO.
"We are confident that customers will buy our Bristol designed technology as soon as it's commercially available," said Nurser.