Tuesday, August 7, 2007

Venture Capital and VOIP

The trend in VoIP industry to seek partnership for Venture Capitals is on a rise. More and more VoIP companies are coming forward for more than meaningful partnerships with expert management teams to become market leaders in the Voice over Internet Protocol (VoIP) communications industry.

The key to success of Venture Capital & VoIP lies in the ability to leverage a unique combination of financial, operational and technological expertise specifically focused on the communications industry to capitalize on rapid changes that should be tracked closely. Today, VoIP companies are focusing on raising expansion capital for technology and services with VoIP companies converging feature-rich voice, video and Internet over unified IP networks.

VoIP companies are concentrating on developing financing strategies and helping management teams capitalize on opportunities in the communications space by providing access to a highly developed network of venture capitalists and private equity funds in North America and Europe interested in investing in the VoIP space. There are many companies that provide access to institutional and corporate investors and help such VoIP companies. Such also takes an active role in client companies leveraging high-level contacts in the conventional telecom and VoIP worlds. These companies have a team of telecom veterans who often facilitate key additions to the management team, as well as business development relationships with other communications technology vendors, service providers, suppliers and customers and they also play an active role in the development and maintenance of investor materials, business plans and financial statements and forecasts.

After initial funds have been raised these Venture Capital companies works closely with the management team to foster commercially-productive relationships with other industry leaders to maximize results and create liquidity for investors. Venture Capital companies provide extensive network of contacts with larger industry technology vendors and service providers which also facilitate mergers & acquisitions.

In brief, when Venture Capital companies commit to raise capital or assist with a trade sale. They match investment opportunities with multiple appropriate investors who add the most value to the enterprise whilst increasing the total amount of funds provided to the enterprise at the best valuation. These companies perform rigorous due diligence with unique expertise and only partner with select leaders in communications technologies, software and services.

Benefits of merger of Venture Capital & VoIP –

Shorten Time-to-Revenue - Rapidly deploy VoIP services with streamlined service creation and flow-through provisioning.

Increase Service Revenue - Quickly bundle and up-sell VoIP with a market-ready library of voice, messaging, desktop and access services.

Lower Customer Acquisition Costs - Extend self-provisioning to customers enabling them to view and manage their own services and features via a self-service web portal.

Reduce Customer Churn - Fulfill customer demand with a library of proven services like VoIP and Messaging, while supporting future requirements for converged voice, video and data services.

Decrease Operating Costs - Automate delivery of services by managing moves/adds/changes fully integrated with billing, inventory and provisioning.

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