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  • Ooma Raises $17.3 Million For Its “Free” Home Calling Service

    Alexia Tsotsis

    Alexia Tsotsis is the co-editor of TechCrunch. She attended the University of Southern California in Los Angeles, CA, majoring in Writing and Art, and moved to New York City shortly after graduation to work in the media industry. After four years of living in New York and attending courses at New York University, she returned to Los Angeles in... → Learn More

    Monday, January 9th, 2012
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    VoIP free domestic calling service Ooma has raised another $17.3 million in funding from existing investors Draper Fisher Jurvetson, Founder’s Fund and others. This brings the company’s total funding to a sizeable $83.3 million.

    What’s compelling about Ooma is that company sort of flips the Vonage model on its axis — While Vonage charges a monthly service fee and gives away its VoIP hardware, Ooma sells its Telo product for $200 and then offers the domestic calling capabilities gratis for as long as customers own the product.

    Ooma also has international calling plans, starting at a penny a minute to call 60 different countries.

    Marketing exec Jim Gustke tells me that the 50 person, Palo Alto based company will be using the new funds to expand its marketing efforts and will be revealing new product developments at CES. “Stay tuned!” Gustke says.


    Company: ooma
    Website: ooma.com
    Launch Date: January 1, 2004
    Funding: $81.3M

    Founded in 2004, Ooma offers a consumer electronics product that provides free, U.S. telephone calling and advanced telephony services utilizing a high-speed Internet connection and existing home phone. Ooma delivers outstanding HD call quality and the reliability of a traditional phone service at a fraction of the cost. The Ooma Mobile HD app allows customers to make U.S. and international calls from their Android, iPhone, iPad and iPod touch device. Ooma is available at more than 4,000 leading retailers...

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