VoIP startup Vonage, which has garnered loads of attention in recent months with its aggressive rollout of VoIP services to residential and small business users, has closed a $35 million financing round led by New Enterprise Associates (NEA).
“Vonage is excited to welcome NEA, one of the foremost venture capital firms today, as an investor, board member and partner,” says Jeffrey A. Citron, Vonage chairman and CEO.
“Through this partnership, Vonage is poised to extend its leadership position and will look toward NEA for their expertise in guiding earlystage companies to help us expand our operations and extend our global reach.”
Vonage’s latest round of financing will be used to further the buildout of the service, enhance marketing programs and develop new offerings. Vonage senior management also participated in the round; capital raised to date by the company now totals $65.3 million.
Vonage’s service area encompasses more than 1,800 active rate centers in more than 100 U.S. markets.
With more than 70,000 lines in service, Vonage continues to add more than 10,000 lines per month to its network. More than 3 million calls per week are made using Digital Voice, the company’s flat rate phone service.
The service is sold directly through the company’s Web site and through retail partners such as Amazon.com. Also, wholesale partners such as EarthLink, ARMSTRONG, Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own brands.
