VoIP Device Maker Ooma Raises Another $16 Million

Ooma, a Palo Alto, Calif,-based company that has created a VoIP phone hardware and services platform has raised another $16 million in third round of funding from it’s existing and new investors. Ooma had previously raised $27 million in two rounds of funding, bringing the total to $43 million. That’s a lot of money especially since the company hasn’t lived up to its initial promise.

Ooma, now about four years old had launched last July with much fanfare but lost its was as some key executives had left the company. In April 2008, Rich Buchanan, company’s new marketing honcho told us that the company would increase its retail presence. Since then the company has started selling at Best Buy. The company is going to use much of its new $16 million for expanding its retail presence.