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Sequoia invests in Austria based Jajah

Filed in archive Venture Capital by tj on March 10, 2006

jajah_header.jpg
As a:c reports Sequoia has discovered Europe as a new investment area:

"A press release was apparently sent to certain German publications in late February. According to Der Spiegel, it took Sequoia 20 days to close the deal after the first meeting with Jajah's Austrian founders, Roman Scharf and Daniel Mattes, including moving the legal headquarters to Silicon Valley and Luxembourg (good location for low taxes on capital gains) and the transfer of the patents.

JaJah is a web-based VOIP service. The difference between what Skype and GoogleTalk offer, the calls are made using a standard phone. But one of the callers has to have a PC with web access to enter their own number and the one to be called. Jajah's software calls back and then puts the call through. It is a bit like those old discount callback cards we once used. The calls are not free, but discounted. We noted that the the tarifs are not terribly cheap for calls between mobile phones, at least with the number we tested.

The a:c notes that several trade pubs have taken issue with Jajah's privacy policy as the contract the user agrees to seems to give the startup the right to track users movements on the web and third party address sharing."


Jajah seemed to be one of many Skype clones as it started. Now they have discovered the SkypeOut market - no doubt the market is big enough for several players and the Skype hype will find an end - so welcome to Silicon Valley :)


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