Internet Phone Company, Vonage, Raises $200 Million in Venture Capital

Vonage, the Internet telephone company, announced yesterday that it had raised $200 million in new private investment, a deal that constitutes one of the largest single rounds of venture capital financing in the last decade.

The size of the deal underscores the confidence of the lead investors, including several major Silicon Valley venture capital firms, that Vonage, a privately held company, can continue to thrive as an Internet telephone provider even as the regional Bell companies and cable providers enter the business.

The investment comes as Internet telephony, a service that allows consumers and businesses to place calls using high-speed Internet connections, is just beginning to take hold. Vonage, the leader in the field, has 650,000 subscribers and adds 15,000 subscribers a week.

By MATT RICHTEL

Full story: http://www.nytimes.com/2005/05/07/technology/07vonage.html?