US-based internet company Facebook yesterday announced that a group of investors, including several university outfits, may invest up to $170m as part of its Telecoms Infrastructure Project (Tip).
The initiative does not constitute a new fund*, but is rather Facebook obtaining non-binding and in principle commitments from partners to back telecoms infrastructure startups over the next three to five years.
Facebook will offer support and guidance to the investors and their potential portfolio firms, but does not appear to be targeting investments itself.
The partners include Oxford Sciences Innovation, the university venturing fund of Oxford University, Touchstone Innovations, the commercialisation firm spun out of Imperial College London, and IP Group, a commercialisation firm supported by several universities, as well as Atlantic Bridge, Capital Enterprise, Downing Ventures, Entrepreneur First and Episode 1 Ventures.
Tip is an initiative created by Facebook to increase internet coverage in third-world and developing countries, such as Uganda, where the company is constructing a fibre backhaul network with telecoms firm Airtel and wholesale provider BCS.
Tip has attracted more than 450 members, including recent additions such as software company Microsoft, telecoms firms BT and Nextel, and satellite TV provider Dish.
Additionally, Facebook also announced the Tip Ecosystem Acceleration Center program in partnership with BT, which will launch two accelerators in London and Adastral Park respectively this year.
The two UK-based accelerators follow a first program announced in Seoul, South Korea last year in partnership with telecoms firm SK Telecom.
– This article was updated on March 1.It originally stated that the $170m constituted a new vehicle. Oxford University Innovation today clarified the commitments to us via email with information that was not in Facebook’s press release. We apologise for the confusion.