SunRocket Inc. made a splash earlier this summer when the company won the award for the Hottest Venture Capital Deal from the Northern Virginia Technology Council for closing on nearly $50 million in venture financing. The Vienna, Va.-based provider of residential Internet telephony services has added to that funding total with the announcement today that it has raised an additional $33 million in a Series C round.
New backers included Varma Mutual Pension Insurance Co., The Grosvenor Funds and Bru Venture Capital, while returnees included BlueRun Ventures, Mayfield Fund, DCM-Doll Capital Management and Anthem Capital Management. SunRocket has raised nearly $80 million in total VC funding since its February 2004 inception.
The latest venture round comes about three months after competitor Vonage Holdings Corp. (NYSE: VG), which was also VC-backed, launched an IPO. The offering raised more than $530 million as shares of the company went out at $17 a share. The stock opened today at $7.23 a share, a 57% drop since the opening day debut.
However, there’s no Vonage-effect when it comes to backing VoIP companies. Just this month, Digium Inc., a Huntsville, Ala.-based open source telephony company, raise $13 million from Matrix Partners. And Boingo Wireless, a Santa Monica, Calif.-based wireless Internet access provider (which translates into better support for WiFi VoIP services at hotspots) raised $65 million in a Series C round from Mitsui & Co., New Entrprise Associates, Sternhill Partners, Steelpoint Capital and Red Rock Ventures.
As Jonathan Ebinger, a partner with BlueRun Ventures, told the Washington Business Journal: “The telecom industry is changing and Voiceover IP is going to be a part of that.” —Alastair Goldfisher