Communications Wrap: VCs Not Quite Out of Touch with Optical Networking –

Despite the recent public flogging of optical networking stocks, venture capitalists and analysts alike seem to think that the sector hasn’t yet seen its last day in the sun.

At the very least, there appears to be widespread optimism that an ever-increasing global demand for bandwidth and connectivity will be enough to keep the valuations of most fledgling private optical communications companies from heading south down the road. Theoretically, the hope is that a vast majority will avoid the fate of many of their public peers – some of which have seen their stock prices fall by as much as 90% below their annual highs in recent months.

Regardless of the sector’s lackluster public market performance, it’s clear that, for now, optical networking has not yet fallen out of favor in private equity circles. According to preliminary figures from our