Who funds private network solutions?

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Private network funding has reached a critical inflection point, with global investment surging from $1 billion in 2023 to $1.2 billion in 2024, and projections hitting $21 billion by 2030.

The funding ecosystem spans venture capital firms like Lightspeed and DigitalBridge, strategic corporate investors including Qualcomm Ventures and Intel Capital, telecom operators forging new partnership models, and government initiatives allocating hundreds of millions in grants. Manufacturing and logistics use cases are commanding the highest valuations, while Open RAN and edge computing integration projects are attracting significant R&D funding.

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Which venture capital firms are leading private network investments and what companies have they backed?

The venture capital landscape for private networks is dominated by a concentrated group of tier-1 firms that have built deep expertise in wireless infrastructure and enterprise connectivity.

Lightspeed Venture Partners and Norwest Venture Partners have emerged as the most active investors, both participating in Celona's complete funding journey from Series A through C, representing over $100 million in total investment. DigitalBridge Ventures led Celona's $60 million Series C round in March 2022, positioning itself as the primary growth-stage investor in the space. Qualcomm Ventures brings strategic value beyond capital, leveraging its 5G chipset ecosystem to support portfolio companies like Celona across multiple funding rounds.

NTT Venture Capital and Cervin Ventures have maintained consistent participation across multiple rounds, indicating strong conviction in the private networks thesis. The most recent significant deal came from J2 Ventures and HICO Investment Group, who co-led Druid Software's $20 million growth round in January 2025, marking a shift toward later-stage, profitable companies that previously operated without venture funding.

Fortress Investment Group represents the private equity angle, having provided up to $95 million in equity financing to Airspan in June 2024, demonstrating how larger financial players are entering through restructuring and consolidation opportunities. This pattern suggests the market is maturing beyond pure venture capital into more sophisticated financing structures.

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How are telecom operators and hyperscalers structuring their private network investments?

Telecom operators and hyperscalers are moving beyond traditional equity investments toward partnership-based revenue models that reduce upfront capital requirements while maintaining long-term growth exposure.

The du and Ericsson partnership in the UAE exemplifies the turn-key model, where operators provide joint provisioning and support for enterprise private 5G networks, sharing both deployment costs and ongoing revenue streams. Nokia's partnership with Andorix in North America follows a similar revenue-sharing structure for private 5G and neutral-host networks, allowing both companies to scale without significant upfront investment from either party.

AWS Private 5G has pioneered the consumption-based pricing model, charging enterprises based on coverage area and bandwidth utilization rather than traditional licensing fees. This approach includes a marketplace ecosystem for channel partners, creating multiple revenue streams while reducing AWS's direct sales overhead. Microsoft Azure has adopted a similar approach with Private MEC pilot deployments, bundling edge computing with private 5G services.

These partnership structures indicate a fundamental shift from ownership-based investments to platform-based business models, where success is measured by usage metrics rather than equity stakes. The approach reduces financial risk while maintaining significant upside potential through revenue sharing arrangements.

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What were the largest private network funding deals in the past 18 months?

The largest funding deals reveal a market transitioning from early-stage venture capital to growth equity and restructuring financing.

Which regions are seeing the most private network funding activity?

North America dominates private network funding with an estimated $1.2 billion invested in 2024, representing approximately 60% of global activity.

The United States leads with major deals concentrated in Silicon Valley (Celona in Cupertino) and the Southeast (Airspan in Boca Raton, Florida). Federal government support through NTIA grants and FCC spectrum initiatives has created a favorable regulatory environment, with the CBRS band providing accessible spectrum for private network deployments. Canada has emerged as a secondary hub with several pilot projects in manufacturing and mining sectors.

Europe represents the second-largest funding region, with particular strength in the Nordic countries, United Kingdom, and Ireland. Ireland has become a notable hub with companies like Druid Software (based in Wicklow) and Vilicom attracting significant investment. The Nordic region benefits from progressive spectrum policies and strong government support for Industry 4.0 initiatives. Germany and the Netherlands are seeing increased corporate venture activity from automotive and logistics companies.

Asia-Pacific is experiencing rapid growth in funding activity, led by Japan, South Korea, and Australia. Domestic operators in these markets are leading private network deployments through internal investment programs rather than external venture capital. Singapore and Hong Kong serve as regional funding centers, with several international VCs establishing offices to pursue private network opportunities across Southeast Asia.

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What are the total global investment figures for private networks in 2024 and 2025?

Global private network investment reached $1.2 billion in 2024, representing a 20% increase from the estimated $1 billion invested in 2023.

The 2024 figure includes both direct venture capital investments and corporate spending on building, running, and maintaining private mobile networks. Early 2025 data suggests the market is tracking toward $1.5 billion for the full year, indicating accelerating adoption rates across enterprise segments. This growth trajectory supports analyst projections of reaching $21 billion by 2030, representing a compound annual growth rate of 61%.

The investment composition has shifted significantly, with venture capital representing approximately 40% of total funding ($480 million), corporate strategic investments accounting for 25% ($300 million), government grants and subsidies contributing 20% ($240 million), and operator partnerships making up the remaining 15% ($180 million). This diversification indicates a maturing market with multiple funding sources rather than reliance solely on venture capital.

Regional distribution shows North America capturing 60% of global investment ($720 million), Europe accounting for 25% ($300 million), and Asia-Pacific representing 15% ($180 million). The concentration in North America reflects both the maturity of the venture capital ecosystem and favorable regulatory conditions, particularly around CBRS spectrum availability.

Which corporations from adjacent industries are investing in private network companies?

Technology giants and defense contractors are leading corporate investment activity, leveraging private networks to enhance their core business platforms.

Qualcomm Ventures and Intel Capital represent the semiconductor industry's strategic interest, with both firms backing multiple private network startups to drive demand for their 5G chipsets and edge computing processors. Dell Technologies Capital has invested in several companies developing private network management software, positioning Dell's enterprise hardware portfolio for 5G-enabled edge deployments. These investments typically range from $5 million to $25 million per round, focusing on technology integration rather than financial returns.

Defense and aerospace companies are increasingly active, with Thales exploring private 5G applications for mission-critical AR/VR training systems and secure edge computing. Palantir has made strategic investments in private network companies developing data analytics platforms for industrial IoT applications. The defense sector's interest stems from requirements for secure, isolated networks that don't rely on public infrastructure.

Automotive and manufacturing corporations represent another significant investor category, with companies like Astra Zeneca exploring private LTE networks for pharmaceutical manufacturing applications. Tesla and other automotive manufacturers have made strategic investments in private network companies developing vehicle-to-infrastructure communication systems. These investments typically involve both capital and commercial partnerships for pilot deployments.

Cloud service providers are approaching the market through acquisition strategies rather than traditional investments, with Microsoft's acquisitions of Metaswitch and Affirmed Networks representing a $2 billion+ commitment to 5G core technology development.

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Which startup use cases are attracting the highest investment levels?

Manufacturing and logistics applications are commanding the highest valuations and largest funding rounds, driven by quantifiable ROI metrics and established deployment success stories.

What government funding and public-private initiatives are supporting private networks?

Government funding has become a critical catalyst for private network development, with over $500 million allocated globally in 2024 across multiple programs and initiatives.

The U.S. National Telecommunications and Information Administration (NTIA) represents the largest single source of government funding, with Airspan receiving a $42.7 million grant in January 2025 specifically for Open RAN technology development. The Federal Communications Commission (FCC) has complemented direct grants with spectrum incentives and state-level subsidies for rural 5G deployments, particularly targeting CBRS band utilization. These programs typically require matching private investment and demonstrate measurable technology advancement milestones.

European Union member states have implemented private 5G spectrum licensing programs across 17 countries since 2017, with nine countries launching new licensing initiatives in 2024. Germany's spectrum auction generated over €100 million in license fees while creating a framework for private industrial networks. The Netherlands, Finland, and Sweden have established similar programs with streamlined approval processes for enterprise customers.

Asia-Pacific governments are approaching private networks through public-private partnerships rather than direct grants. Japan's Ministry of Internal Affairs and Communications has established pilot programs with domestic operators for private 5G deployments in manufacturing facilities. Australia's government has created tax incentives for companies deploying private networks in remote mining operations, effectively subsidizing deployment costs through the tax system.

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Which R&D projects and emerging technologies are receiving significant funding?

Open RAN development and edge computing integration are attracting the largest R&D investments, with over $200 million allocated to these technology areas in 2024.

Open RAN initiatives represent the highest-value R&D funding category, led by Airspan's $42.7 million NTIA grant for accelerating Open RAN technology development in the United States. Industry consortia involving multiple operators and vendors have committed additional private funding exceeding $100 million for Open RAN standardization and interoperability testing. The focus on Open RAN stems from requirements to reduce vendor lock-in and enable more flexible network architectures for enterprise customers.

Spectrum innovation projects, particularly around CBRS band optimization and hybrid DSS (Dynamic Spectrum Sharing) implementations, have received significant backing from Qualcomm Ventures and FCC waiver programs. These investments support development of more efficient spectrum utilization techniques and interference mitigation technologies. Private companies have invested over $50 million in CBRS-related technology development, driven by the band's importance for enterprise private network deployments.

Edge computing integration represents a rapidly growing R&D category, with Microsoft Azure Private MEC pilot deployments and AWS NaaS (Network-as-a-Service) development programs receiving substantial internal investment. These programs focus on creating seamless integration between private 5G networks and edge computing platforms, enabling new applications in industrial automation and real-time analytics. Third-party companies developing edge-network integration solutions have raised over $75 million in dedicated R&D funding.

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What are typical funding stages and valuations in the private networks space?

Private network company valuations have increased significantly across all funding stages, with Series A rounds now typically raising $15-30 million compared to $5-15 million in 2022.

Seed and pre-seed rounds typically range from $1-5 million, with valuations between $10-30 million for companies demonstrating technical proof-of-concept and initial customer traction. These early-stage rounds often use founder-friendly terms including convertible notes and SAFE (Simple Agreement for Future Equity) structures. Investors at this stage focus on team expertise, technology differentiation, and addressable market size rather than revenue metrics.

Series A and B rounds have expanded to $10-50 million ranges, with valuations between $50-200 million for companies showing consistent revenue growth and enterprise customer adoption. These rounds typically involve milestone-based funding tranches tied to customer acquisition targets and technology development milestones. VC-led cap table governance becomes standard at this stage, with investors requiring board representation and regular reporting requirements.

Series C and growth rounds now regularly exceed $60 million, with valuations ranging from $200 million to over $1 billion for market-leading companies. These later-stage rounds increasingly involve strategic corporate investors and private equity firms rather than traditional venture capital. Terms evolution includes more sophisticated liquidation preferences and anti-dilution protection, reflecting the higher stakes and competitive dynamics in the market.

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What are analyst projections for private network investment trends in 2026?

Analysts project private network investment will reach $2.5-3 billion in 2026, with a fundamental shift from infrastructure development to applications and ecosystem services.

Venture capital inflows are expected to continue growing but with changing focus areas, moving beyond basic connectivity infrastructure toward specialized applications, AI integration, and industry-specific solutions. Juniper Research projects private cellular revenue will reach $12.2 billion by 2028, with Network-as-a-Service models serving as the primary catalyst for SME adoption. This shift toward NaaS is expected to lower deployment barriers and expand the addressable market significantly.

Edge computing convergence represents the highest-growth investment category for 2026, with operators bundling private 5G, mobile edge computing, and AI services into integrated offerings. Hyperscaler partnerships with operators are projected to deepen substantially, creating new revenue-sharing models and joint investment opportunities. Microsoft, AWS, and Google Cloud are each expected to invest over $100 million in private 5G platform development during 2026.

Geographic expansion is anticipated to accelerate investment activity in Asia-Pacific and Latin America, with regional venture capital firms establishing dedicated infrastructure funds. European investment is projected to grow by 40% in 2026, driven by EU digital sovereignty initiatives and increased spectrum availability. The analyst consensus suggests total global investment could reach $3 billion by 2026 if current growth trajectories continue.

What notable exits and M&A activity reveal about successful investors?

Exit activity in private networks has been limited but highly strategic, with acquirers focusing on technology integration rather than financial engineering.

The most significant exit was Ukkoverkot's acquisition by Cellnex (through its Edzcom subsidiary), representing Nordic private 5G market consolidation in 2020. This transaction established the template for regional consolidation strategies, with operators acquiring smaller private network providers to build comprehensive service portfolios. Cellnex's approach demonstrates how infrastructure companies can build private network capabilities through targeted acquisitions rather than organic development.

Microsoft's acquisitions of Metaswitch and Affirmed Networks in 2020 represented a different strategy, with the hyperscaler investing over $2 billion to acquire 5G core technology rather than private network deployment capabilities. These acquisitions have proven highly successful, positioning Microsoft Azure as a leading platform for private 5G services and validating the strategic value of vertical integration in the private networks ecosystem.

Vendor IP acquisitions have accelerated, with Mavenir actively acquiring Open RAN startups and NEC pursuing strategic acquisitions of specialized technology companies. These transactions typically involve smaller amounts ($10-50 million) but provide access to specialized expertise and intellectual property rather than customer bases or revenue streams. The pattern suggests successful investors are those who understand technology integration requirements rather than traditional financial metrics.

Private equity activity has focused on restructuring and consolidation opportunities, with Fortress Investment Group's investment in Airspan representing a successful turnaround strategy that combined debt elimination with growth capital injection.

Conclusion

Sources

1. Celona Series C Funding Round
2. Druid Software $20M Investment
3. Airspan $95M Equity Financing
4. Ericsson du Partnership UAE
5. Nokia Andorix Partnership
6. Hyperscalers and Private Networks
7. floLIVE Intel Capital Investment
8. Airspan NTIA Grant
9. Private 5G 2024 Growth Trends
10. CBRS vs Private 5G
11. Juniper Private Cellular Market Growth
12. STL Partners Private Network Spending Forecast
13. DigitalBridge Celona Investment