A local venture-capital fund founded by Diamond Ventures has made an investment in Tucson-based Electronic Design and Development Corp. (ED2), a startup developing low-cost equipment for emerging 5G data networks.

DVI Equity Partners LLC was the lead investor in the company’s first venture capital funding round and said it will also provide business and operational expertise to boost ED2’s growth in the global 5G market.

5G is a new technical standard for wireless networks that promises faster data-transfer speeds, less lag when connecting to the network; and the ability to connect more devices efficiently.

ED2 has developed low-cost filters to clean up 5G signals; a first-of-a-kind universal 5G wireless software-based repeater to extend current 5G range and penetration; and a low-cost, low-power consumption 5G antenna.

DVI managing partner Robert Griffin said in a news release that ED2 is well-positioned to help telecom providers overcome “serious infrastructure challenges,” including costs, in rolling out 5G.

“ED2’s leadership and capabilities are strong, and their novel and low-cost components are in great demand, and we are pleased to support their success,” Griffin said.

ED2’s products are part of a radio-frequency front-end component market that is estimated to grow from about $19 billion this year to nearly $40 billion by 2025, according to figures from market research company Yole Development cited by DVI.

ED2 was founded last year and is led by President Sergio Cardona, who previously co-founded local microelectronics startup nMode Solutions and subsidiary Triton Microtechnologies. The companies were acquired by Indiana-based Samtec Inc. in 2016.

DVI Equity Partners LLC was founded in spring of 2018 by Diamond Ventures, a real estate development company founded by the late Don Diamond.

Contact senior reporter David Wichner at dwichner@tucson.com or 573-4181. On Twitter: @dwichner. On Facebook: Facebook.com/DailyStarBiz

Reporter

David joined the Star in 1997, after working as a consumer and business reporter in Phoenix for more than a decade. A graduate of Ohio University, he has covered most business beats focusing on technology, defense and utilities. He has won several awards.