WiFi Start-Up Raises $44.5 Million in Funding

Vivato, a San Francisco-based maker of gear targeted at companies installing short-range wireless technology known as WiFi, said Monday that it got $44.5 million in venture funding from investors including an arm of Intel Corp.

The investment, which brings Vivato’s total funding to $67 million, ranks as one of the largest venture scoops in a niche that has attracted increasing attention despite a still-depressed market for telecom goods and services in general.

WiFi technology allows computer users to share high-speed Internet connections over the airwaves. The networks are growing in popularity in public spaces such as coffeehouses and airports.

Vivato’s latest capital infusion was led by Advanced Technology Ventures of Palo Alto.

Other start-ups in the WiFi gear market include Aruba Wireless Networks, Airespace Inc. and Airflow Networks.

Already, however, some analysts are warning of a shakeout in the WiFi gear market. “There definitely will be consolidation. Unfortunately, it won’t happen before more of them show up,” Yankee Group analyst Sarah Kim said.