VCs say optical communications quiet but not silent

摘要

The financial environment in which optical communications companies operate offers a conundrum. On the one hand, market research indicates that more money is being spent on optical communications technology today than at any time since the height of the bubble in 2001. On the other, the balance sheets for companies active in the space don't reflect the kind of prosperity such customer spending would normally imply, particularly in the optical components and subsystems niche. Not surprisingly, the financial community doesn't like conundrums-so when companies go looking for venture funding, they'll find that while carrier capital expenditures have risen, venture capital (VC) expenditures have not. Two sources in the VC community suggest that although funding isn't impossible to find, it's not likely to get significantly easier to locate anytime soon. "Optical communications is still a tough play in the venture community," concedes Don Bossi of Technology Venture Partners. His firm has invested in ROADM technology vendor Nistica and optical channel monitoring company Aegis Lightwave. The ongoing lack of a clear path to a lucrative exit continues to dampen VC enthusiasm, Bossi notes.