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June 2, 2006

Vonage Was No VC Bust

From Dan Primack's column:

When Vonage priced at $17 per share, it had a market cap of around $2.65 billion. As of market close yesterday, that figure had dropped to around $1.81 billion (although it was up to $1.85 billion in early trading today). Not so good for those who paid $17, but the VCs obviously bought in much lower. What follows is Vonage's institutional VC funding history, including post-money valuations:

• Series B: $15m at $67.69m (2003)
  New Enterprise Associates
  
  
• Series C: $40m at $125m (2004)
  Meritech Capital Partners, NEA, 3i Group
  
  
• Series D: $105m at $405m (2004)
  Institutional Venture Partners, NEA, 3i, Meritech
  
  
• Series E: $200m at $915m (2005)
  Bain Capital Ventures, NEA, 3i, Meritech, IVP

As Dan points out, even the VCs who bought in at the most expensive price in the Series E have a 2x gain. Welcome to the wonders of a billion-dollar IPO, and welcome to another reminder of how badly the venture biz needs the IPO window to re-open.

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