Thursday, October 2, 2008

Ooma No Go Booma

Well, this sure was interesting news on a few levels. I'm not going to rehash the history, but I've been following Ooma from the begining, and not long after, Tom Howe got into the mix and made a public wager they would not last a year.

Looks like Ooma has proven him wrong as they just raised $16 million, and not a day too soon with the markets being in meltdown mode now.

This has all unfolded in the past couple of days, and it's just bubbling up on my radar. It's newsworthy - not just because a company that most people I know are highly skeptical of in terms of staying power - but because fellow bloggers Alec Saunders and Tom have responded accordingly to make good on the wager.

And then you just have to wonder how Ooma can keep attracting capital while really cool startups like Iotum and Fonolo struggle to just get a few crumbs. Life doesn't seem fair, does it?

Anyhow, you can read all about it on Tom's post, and it will be one more thing for us to talk about next week at BroadSoft Connections.

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ipcom said...

Posted by: Shai Berger

Minor correction - we're not struggling, just looking for the right partner.

Despite the downturn, there's still a lot of venture capital looking for the right start-ups.
(e.g. Montreal-based Tungl just closed a $5m round yesterday.)

Hundreds of VC firms have raised funds in recent years and those funds have to be placed, regardless of the economic environment.

So there's no lack of interest. Rather, the trick is to find capital under terms that you like (I'm sure Ooma's latest round has very punishing to founders and earlier investors) and with people that you trust.

- Shai

ipcom said...

Posted by: Jon Arnold

Thanks Shai. Good clarification! My intention was to say it's a struggle to get funding, despite having a good idea and thriving in terms of market support. And as you say - the hard part is getting funding on the right terms - absolutely.