Is the communications market going to be leading a rebound in venture returns? I think the sector previously written off for dead will surprise people as bandwidth demands escalate against infrastructure. When I talk to institutional investors, they are almost exclusively negative on communications as a money sink. I'd argue the sector has been underinvested for too long and the mobile web will drive general as well as application specific demand beyond current networks. We'll see.
Lifesize Communications' sale to Logitech (NASDAQ:LOGI) is a nice exit from a company started in 2003 by Craig Malloy. I am fairly sure Venu Shamupant from AV put that deal together. Venu is a solid thinker without all the ego (rare and impressive combo) and congratulations to both him and Craig for a fantastic exit. Looks like the two of them are single-handedly bringing back communication exits as well as some life to the Austin tech market.
Hopefully this is a sign for a lot more exits in communications equipment and those that have bought in at low prices will do well in the months ahead. That said, videoconferencing is a bit of a unique segment and the results here may not apply elsewhere.
Just for disclosure, I served on a board with both Craig and Venu. I think this means on my next trip to Austin they are hopefully buying me lunch somewhere nice!