IntelePeer, A San Mateo-Calif-based Voice services provider raised $18 million in Series C funding. Vantagepoint Partners led the round along with participation from existing investors.

IntelePeer is one of those startups that has little buzz but a lot of traction. Formerly known as VoEx, the San Mateo, Calif.-based company lacks the hype around, say, Ribbit, but it has been delivering on the Voice 2.0 promise of integrating voice with web and enterprise applications for a long time. And doing well — IntelePeer turned EBITDA positive in June and is on its way to revenues that will exceed $50 million in 2009.

That is one of the reasons the company was able to snag $18 million in Series C funding from Vantage Point Partners and previous investors including Kennet Venture Partners, NorthCap Partners and EDF Ventures. The new round is incredible because of its timing — though I am betting that the new investors are looking at the $105 million Ribbit exit and letting their imagination run wild. But then there aren’t many suckers like BT around anymore! The company has raised (including this round) a total of $35.5 million since its inception in 2003.


Thanks to its own voice peering fabric, IntelePeer is on its way to doing close to 7 billion minutes of voice traffic this year, Chairman and CEO Frank Fawzi told me yesterday. “We are a lot larger than Ribbit and Jajah by multiple times,” Fawzi quipped. Jajah is heading down the same path at IntelePeer and the two companies are poised to become fierce competitors — that is if Jajah makes it out on the other end of this downturn.

So why does IntelePeer need the money? “We only just turned EBDITA positive and we need to support our expansion,” Fawzi claimed. Of course, I never expected him to say that he was buying insurance — his investors wouldn’t like that. Plus, it’s prudent to take this money right now. As we all know, downturns are as unpredictable as the tornadoes in the Midwest — and leave just as much destruction in their wake.


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  1. E-B-I-T-D-A. EBITDA. Earnings Before Income, Taxes and Depreciation.

  2. …and amortization Tuesday, November 11, 2008

    …and Amortization.

    /Cue a Homer-style “D’oh!”

  3. Carolyn Pritchard Tuesday, November 11, 2008

    @ EBITDA:

    That typo has been fixed.

    best, Carolyn

  4. Earnings before Interest – not Income.

    Frank Fawzi is a smart and shrewd player – excels at execution. This is not his first time around the block.

  5. @Jeff

    I agree with you — it is about execution and Fawzi is doing a great job of it.

  6. Simply based on the numbers provided in this article IntelePeer is smaller than JAJAH and his statement wrong.

  7. An Amazing time to close a funding round!

    my comments at http://www.commentino.com/orim

  8. It’s like fund-raising magic! Have a company with growing revenues, happy customers, and cash flow positive, and raising money is not that tricky. Buying insurance is also very smart. As all too many people are finding out from their banks, the time to ask for money is when you don’t need it.

  9. @ netzkobold – What are JaJah’s numbers?

  10. @netzkobold Judging by your previous comment, are you saying that Jajah has served more than 7 billion minutes thus far in 2008? Just curious.


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