 |
|
|
|
Vonage Receives $200 Million FinancingPOSTED May 9, 2005 EDISON, NJ -- Vonage, which offers local- and long-distance telephone calls over the Internet, has closed on a $200 million round of financing. It's one of the largest investments ever in a privately-held company. The financing was led by Bain Capital, with participation from existing investors including New Enterprise Associates (NEA), 3i, Meritech Capital Partners, Institutional Venture Partners, and existing investors. This latest round of financing brings total investment in the company to $408 million. Vonage allows residential customers to get unlimited phone calls in the U.S. and Canada for as low as $24.99 per month. All that is needed is an adapter with a high-speed Internet connection via cable modem or DSL. Heavily advertised on TV and online, Vonage has over 500,000 customers. "Vonage is leading the telecommunications revolution, as its full-featured, cost-effective calling plans are prompting hundreds of thousands of people to drop their traditional Bell telephone service," said Jeffrey Citron, chairman and CEO of Vonage Holdings Corporation. "This latest round of funding will help Vonage further cement its position as the leading broadband telephony provider in North America, with further expansion and penetration into global markets." "Voice over Internet Protocol has reached a tipping point, as mainstream consumers begin to adopt broadband telephony as a replacement for their traditional telephone service," said Michael Krupka, managing director of Bain Capital Ventures, the venture capital arm of Bain Capital. "Vonage has led the movement towards mass adoption of VoIP with its exponential growth and we look forward to helping Vonage extend its overwhelming lead as the number one player in the industry." Vonage's latest round of financing will be used to accelerate the expansion of service in the United States, Canada and the UK, as well as consider launching new international markets. The financing round will also be used to support the development of new innovative offerings. Vonage senior management also participated in the round. "With the latest infusion of capital, Vonage is poised to achieve its goal of becoming a billion dollar business, leading the industry through its next phase of growth," concluded Citron. |
|