VoIP service provider Vonage announced $200 million in new funding. The round was led by Bain Capital, with participation from previous investors including New Enterprise Associates (NEA), 3i, Meritech Capital Partners, Institutional Venture Partners, and others. Vonage has raised a total of $408 million to date. This round is one of the largest single VC investments of the decade. The fact that Vonage secured the funding despite the arrival of hundreds of competitors, including major cable companies and incumbent landline carriers, demonstrates that many investors and analysts think the company is well-positioned to cash in on VoIP. This investment could also spur another round of VC investments in the VoIP market, prompting many investors who have already funded VoIP startups to increase their previous commitments.
Vonage is one of the VoIP market's leaders, claiming a subscriber base of 650,000 while adding 15,000 lines per week. The company recently launched service in the UK and has hinted that its next area of expansion may be the Asia-Pacific region. The company has also positioned itself in the fast-emerging wireless VoIP market, bundling WiFi routers with its service packages.
For more on Vonage's latest investment:
- read this report from The New York Times