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Global positioning system plays are all the rage these days, fueled by major acquisitions in the sector. Combine that with the burgeoning market for in-car wireless services, and presto -- you get a hefty funding round.
For Airbiquity Inc., a leading maker of wireless data communication technology used in cars, this interest has translated into a $25 million funding round from new investor Ignition Partners and existing backers Acorn Ventures, Kirnaf LTD and Shell Internet Ventures.
But the Seattle-based company has faced some challenges over the past several years. Airbiquity started off in the late 1990s as a hot location-based services startup, but it ran into one of the most frustrating problems that can stiff-arm smart entrepreneurs -- its technology landed a few years too early. In announcing the final closing of its $16 million fourth round in 2001, the company said the funding would likely carry it through to breakeven. But soon thereafter it ended up slashing its work force, changing out its management team and revamping its business plan.
Since then, the company has managed to sign up four top automakers to its customer roster. Its technology also plays a key role in General Motors Corp.' OnStar in-vehicle safety and communication service network, a relationship that helped pull the startup through the lean years. With $25 million in its pocket, investors seem committed to seeing this company through. - Olaf de Senerpont Domis
See Jan. 22 press release from Airbiquity
See November 2001 story from TheDeal.com
See October 2005 post from VC Notebook
