SunRocket Taps VCs, But Is It Enough?

sunrocketCall it the Skype Halo …. VCs are looking at the big money takeout of Skype, and saying to themselves, we need to jump on the VoIP bandwagon. VoIP Service Providers of 2005 as DSL providers of 1996. That’s my skeptical view, but others might see it as an opportunity. Which possibly explains the $25 million infusion into Sun Rocket by new investors. Mayfield Fund led the round, joined by DCM – Doll Capital Management and existing investors BlueRun Ventures and Anthem Capital Management. So far, SunRocket has raised $34 million in venture financing. What is the exit here? We know even Vonage … Vonage people … themselves are wondering about the exit – will it be an IPO or a sale? Or Nothing! I hope the company puts the money to good use, and work on fixing that infrastructure. Their customers are mad and willing to jump ship. Unlike Andy, I think they have challenges. They lack the brand presence of Vonage, and are facing an increasingly hostile competitive landscape. The cable companies are so focused on owning the consumer VoIP market that I fear for all incumbents.


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