Broadcom Ups Stake in Wireless Startup
By ANDREW SIMONS
Irvine-based Broadcom Corp. made up a “not insignificant” chunk of $7 million in funding for a Los Angeles-based wireless company started by a friend of Broadcom cofounder Henry Samueli, according to the deal’s lead investor.
Innovics Wireless Inc. designs chips and antennas that go inside wireless phones, computers and other gear and speed the flow of data.
The company has raised $14 million so far with Broadcom also taking part in Innovics’ 2000 startup round.
“They really are a great story,” said Rick Smith, a general partner at Irvine-based Palomar Ventures’ Santa Monica office.
Palomar led both funding rounds for Innovics.
Innovics’ investors wouldn’t reveal how much Broadcom invested in the company.
Broadcom has been making moves into wireless.
In a recent buy, Broadcom grabbed Santa Clara-based MobileLink Telecom Inc., which makes wireless chips. Broadcom also bought two small wireless companies a year ago.
“Broadcom has certainly showed their acquisitive nature,” Smith said.
Babak Daneshrad, a researcher at the University of California, Los Angeles, started Innovics. Samueli taught electrical engineering and oversaw chip research at UCLA from 1985 to 1995.
Innovics designs chips for third-generation or “3G” wireless networks. Wireless service providers such as Sprint PCS Group and Verizon Wireless Inc. have upgraded their networks to 3G, though data speeds aren’t consistently up to 3G standards because of network limitations.
Innovics chips work much like Broadcom’s do in cable TV boxes and networking gear by speeding the flow of data to phones.
