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Vonage Raises $200 Million In Venture Funds

The VoIP provider Vonage today announced that it had raised $200 million in its latest round of financing, bringing the total investment in the company to $408 million.

Vonage said that the new funds will be used to accelerate expansion in the United States, Canada and the UK, and may be used to launch into new international markets. The money will also be used for product development.

The latest round of financing was led by Bain Capital, with participation from existing investors including New Enterprise Associates (NEA), 3i, Meritech Capital Partners, and Institutional Venture Partners. Vonage senior management also participated in the round.

"Voice over Internet Protocol has reached a tipping point, as mainstream consumers begin to adopt broadband telephony as a replacement for their traditional telephone service," Michael Krupka, managing director of Bain Capital Ventures, the venture capital arm of Bain Capital, said in a statement. "Vonage has led the movement towards mass adoption of VoIP with its exponential growth and we look forward to helping Vonage extend its overwhelming lead as the number one player in the industry."