VoIP startup Ooma has raised another $14 million in venture capital, we’ve heard from multiple sources, increasing the total amount of capital the company has raised to $56 million. This most recent round of financing was led by existing investor Worldview Technology Partners and was a restructuring that wiped out earlier investors who chose not to participate in this round.
The company was really on the ropes and down to its last few dollars, says one source. But sales, particularly at Best Buy, are brisk and the company should reach profitability with this new round of financing, he added.
Ooma first launched two years ago as a new type of consumer VoIP product. But a complicated business model (expensive hardware, free service) made it confusing for consumers to compare to competitive offerings from Vonage and others.
But customer reviews were very positive, and the company brought in seasoned sales executive Rich Buchanan, previously at Sling Media. Best Buy started selling the devices and have been very successful in moving them off the shelves.
The company also announced a new handset product called the Telo at CES earlier this year. It is not yet available for purchase.