With the downturn in traditional Western venture capital, the leading 3G femtocell maker has turned to Asia for backing from customers to take on the US.
Swindon-based Ubiquisys, the leading developer of 3G femtocells, has closed the second round of funding with a $5 million investment led by three Taiwanese companies: SerComm Corporation, UMC Capital Corporation and Pacific Venture Partners.
The backing also includes existing investors Advent Venture Partners, Accel Partners and Atlas Venture, but other key backers – Google and T-Mobile – are not mentioned. This follows $9m raised in July.
Somewhat ironically the money will be used to accelerate its momentum worldwide, particularly in the Americas, says the company.
“Asia plays a leading role in the femtocell industry today, both in terms of product diversity and business model innovation,” said Chris Gilbert, CEO Ubiquisys. “Our work with SoftBank and SerComm has broken new ground and we are delighted to be adding strategic investors who bring extra know-how to help Ubiquisys build on our strong international momentum.”
Ubiquisys already has strategic relationships with a number of Asian device manufacturers, who have been instrumental in producing femtocells at the sub-$100 price point that enables operators to supply them for free.
The company was also recently named the number one femtocell vendor in an independent study by ABI Research, ahead of vendors such as Alcatel-Lucent, Huawei and Cisco.