This article points to Vonage as one of the factors making for a poor IPO market. The colossal blowup of Internet phone company Vonage is scaring IPO investors and IPO hopefuls alike, says Joel Greenberg, partner at law firm Kaye Scholer. Investors that got in at the IPO price got drilled, losing nearly 60 percent. "Vonage shook people up," he says, though he thinks that profitable firms with more stable businesses can still go public.
I suppose if this is true the Vonage IPO hasn’t done much to help VoIP in general. I now hear many companies explaining how they are different than Vonage. Many of them were comparing themselves to Vonage last year and the year before.
The way the VoIP market has been – a fast moving seesaw, I wouldn’t be surprised to see Vonage beat expectations (when this happens is certainly unknown but as time goes on, one would imagine this is more likely to happen) only to have companies comparing themselves to Vonage again.