Voice-over-Internet-protocol provider Vonage Holdings Corp. said Monday that it closed a $35 million financing round led by New Enterprise Associates.
Proceeds will help the company to build out its service, enhance marketing programs and develop new offerings.
The VoIP company counts 75,000 subscribers, with about 65% riding on top of cable modems and 35% on digital-subscriber-line modems.
Over the past few months, Vonage has launched a nationwide advertising campaign and signed its first cable affiliate, Armstrong Cable Services.
The company markets directly to consumers through retail partners such as Amazon.com Inc., Best Buy Co. Inc. and RadioShack Corp. and through private-label deals such as its agreement with Armstrong
"We'd love to partner with more cable companies," said Phil Giordano, vice president of national cable and MSO accounts at Vonage.
The upstart got a recent thumbs-up from UBS Warburg LLC analyst Aryeh Bourkoff, who said in a report, "Vonage should continue to be successful due to the quality of its service, the value it provides customers and its improving distribution."
But Bourkoff didn’t see the company's initial growth coming at the expense of cable's VoIP offerings.
Vonage also has a cable deal with Advanced Cable Communications, and CEO John Rego said during a CNBC interview Nov. 10 that he’d announce five more MSO partnerships before Thanksgiving. No such news came Monday, though.