Vonage with largest round in history

Filed in archive Venture Capital on May 6, 2005

Vonage has raised the largest amount of venture capital oin 2005 - $200 million. Prasanth has more:

"In earlier posts here and here i spoke about skype, not its vonages ture, Vonage will close a $200 million round led by Bain Capital with participation from the company's management and previous investors 3i Group, New Enterprise Associates, Meritech Capital, and Institutional Venture Partners. That's the largest VC funding on record this year, according to researcher VentureOne. A source says Vonage is valued at approximately $1.1 billion after the financing.

Including the new round, Vonage has raised about $410 million since it was founded in 2001. Just nine months ago, it closed a $105 million round, much of which is still in the bank, says CFO John Rego. Why raise more? "growth, growth, and more growth," Rego says."

Wonder which sales you expect when investing on a valuation of estimated $600-$700 million....