Comments on: Roundup: Option scandal spreads, Vonage’s success, and more http://venturebeat.com/2006/06/05/roundup-option-scandal-spreads-vonages-success-and-more/ News About Tech, Money and Innovation Sun, 22 Nov 2009 19:46:42 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: Could SIP Really Save Skype? http://venturebeat.com/2006/06/05/roundup-option-scandal-spreads-vonages-success-and-more/comment-page-1/#comment-899383 Could SIP Really Save Skype? Sun, 01 Nov 2009 13:03:24 +0000 http://venturebeat.com/vc/?p=1410#comment-899383 [...] adapting SIP to the vagaries of the modern Internet sounds expensive, it is. By 2006, Vonage had already burned through nearly half a billion dollars. More importantly, SIP architectures are a critically flawed design [...] [...] adapting SIP to the vagaries of the modern Internet sounds expensive, it is. By 2006, Vonage had already burned through nearly half a billion dollars. More importantly, SIP architectures are a critically flawed design [...]

]]> By: Daytrip company Viator raises $7.6M » VentureBeat http://venturebeat.com/2006/06/05/roundup-option-scandal-spreads-vonages-success-and-more/comment-page-1/#comment-812800 Daytrip company Viator raises $7.6M » VentureBeat Mon, 12 May 2008 23:40:40 +0000 http://venturebeat.com/vc/?p=1410#comment-812800 [...] funding was led by Carlyle Venture Partners and Technology Venture Partners, and it follows $10 million raised in 2005 and 2006. The new money will be used to expand into the international and cruise markets. [...] [...] funding was led by Carlyle Venture Partners and Technology Venture Partners, and it follows $10 million raised in 2005 and 2006. The new money will be used to expand into the international and cruise markets. [...]

]]> By: MySpace apps: Sightspeed releases video chat » VentureBeat http://venturebeat.com/2006/06/05/roundup-option-scandal-spreads-vonages-success-and-more/comment-page-1/#comment-805156 MySpace apps: Sightspeed releases video chat » VentureBeat Mon, 21 Apr 2008 18:36:39 +0000 http://venturebeat.com/vc/?p=1410#comment-805156 [...] chunk of the company’s distribution, as well as a partnership with Logitech, and has received rave reviews from PC [...] [...] chunk of the company’s distribution, as well as a partnership with Logitech, and has received rave reviews from PC [...]

]]> By: Andrew Fife http://venturebeat.com/2006/06/05/roundup-option-scandal-spreads-vonages-success-and-more/comment-page-1/#comment-4431 Andrew Fife Mon, 05 Jun 2006 16:04:27 +0000 http://venturebeat.com/vc/?p=1410#comment-4431 Matt: Successful IPOs are priced accurately and don't have major swings in either direction over the first couple of weeks. Major swings up in price hurt the company because they could have raised money at a higher valuation and major down swings hurt investors because they could have bought at a lower valuation. Its clearly better to have an IPO skyrocket than plummet but somebody isn't happy with the investment bankers either way. I think what you meant was that Vonage was a successful venture investment, which clearly it was. According to Dan Primack (via Paul Kedrosky): "When Vonage priced at $17 per share, it had a market cap of around $2.65 billion. As of market close yesterday, that figure had dropped to around $1.81 billion (although it was up to $1.85 billion in early trading today). Not so good for those who paid $17, but the VCs obviously bought in much lower. What follows is Vonage's institutional VC funding history, including post-money valuations: * Series B: $15m at $67.69m (2003) New Enterprise Associates * Series C: $40m at $125m (2004) Meritech Capital Partners, NEA, 3i Group * Series D: $105m at $405m (2004) Institutional Venture Partners, NEA, 3i, Meritech * Series E: $200m at $915m (2005) Bain Capital Ventures, NEA, 3i, Meritech, IVP" -Andrew Matt:
Successful IPOs are priced accurately and don’t have major swings in either direction over the first couple of weeks. Major swings up in price hurt the company because they could have raised money at a higher valuation and major down swings hurt investors because they could have bought at a lower valuation. Its clearly better to have an IPO skyrocket than plummet but somebody isn’t happy with the investment bankers either way.

I think what you meant was that Vonage was a successful venture investment, which clearly it was. According to Dan Primack (via Paul Kedrosky):

“When Vonage priced at $17 per share, it had a market cap of around $2.65 billion. As of market close yesterday, that figure had dropped to around $1.81 billion (although it was up to $1.85 billion in early trading today). Not so good for those who paid $17, but the VCs obviously bought in much lower. What follows is Vonage’s institutional VC funding history, including post-money valuations:

* Series B: $15m at $67.69m (2003)
New Enterprise Associates

* Series C: $40m at $125m (2004)
Meritech Capital Partners, NEA, 3i Group

* Series D: $105m at $405m (2004)
Institutional Venture Partners, NEA, 3i, Meritech

* Series E: $200m at $915m (2005)
Bain Capital Ventures, NEA, 3i, Meritech, IVP”

-Andrew

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