The funding in the VoIP market is not letting up. Chalk up another $9 million. To its credit StarVox has 300 POPs meaning they have significant control over their network. It also means high costs which of course leads to the need for funding.
StarVox Raises $9 Million in Series A Financing
— Provides working capital and funds for acquisitions —
San Jose, CA – October 19, 2005 – StarVox Communications Inc.(StarVox), a facilities-based next generation Infrastructure and Applications Service Provider, announced today that it has raised $9 million in its first round of financing led by Novus Ventures, Trinad Capital Master Fund and Deutsche Suisse Asset Management. The funding will provide StarVox with working capital to substantially expand its base of both wholesale and retail customers through internal growth and acquisitions.
StarVox is a business focused VoIP service provider that provides the call quality and reliability of traditional phone companies at significantly lower costs and with substantially greater functionality. The Company achieves this level of quality by using a VoIP network composed of redundant softswitch sites connected over a private IP VPN network backed up with a diverse MPLS-based ATM backbone.
"StarVox is a leader in providing the new IP-based phone services that businesses are now adopting," said Dan Tompkins, managing partner of Novus Ventures. "We see tremendous growth for services like VoIP Trunking due to the overwhelming economics available to business sites that migrate to this solution."
"With the success of companies like Vonage in migrating residential users to IP-based phone services, the opportunity now exists to migrate large numbers of business sites to business class versions of these services," said Neil Danics, portfolio manager of Deutsche Suisse Asset Management. "StarVox has the business class VoIP network and VoIP application expertise to deliver these services."
"A significant shift of business sites to IP-based phone services will take place in the next few years," said Lynda Starr, principal analyst at Frost & Sullivan. "Companies like StarVox that have both designed high quality / high reliability networks and have in-house expertise on the enhanced services needed by business sites using these networks, are well positioned to take advantage of this shift."
StarVox provides a full suite of traditional and enhanced VoIP network services including VoIP Trunking and IP Centrex. VoIP Trunking allows a business site to reduce its monthly phone bill by up to 40% by replacing traditional PSTN access trunking with managed IP trunking. IP Centrex enables a business site to replace its traditional PBX with a hosted phone system to reduce monthly phone system costs. StarVox’s domestic VoIP network currently provides over 300 Points of Presence allowing local access to over 80% of business sites. In addition, local phone services are available in most metropolitan areas.
"We are very gratified that the investment community has backed our efforts to create a business class VoIP network with a full suite of enhanced services for small, medium and large businesses," said Doug Zorn, CEO of StarVox. " We foresee a mass migration of business sites to IP-based phone services over the next few years and StarVox plans to be a leading provider of these services."