Redwood City, Calif. (Business Wire) March 4, 2008 – RingCentral announced today it has closed a $12 million series B financing led by DAG Ventures and joined by returning investors Sequoia Capital and Khosla Ventures.
RingCentral also announced that it surpassed 50,000 active customer accounts. Accounts range from one to many subscribers, typically in small businesses with 20 or fewer employees.
The company will use the new funding to enhance its products and services, build new partnerships and distribution channels and increase awareness among its large and growing target market of small businesses.
Commenting on the investment, Khosla Venture's David Weiden said, "Today few small businesses would set up their own web or email software using onsite hardware, and more and more software is outsourced as a service everyday. RingCentral extends this value proposition to telecom hardware, saving thousands in cost and providing more functionality with an easy to use online service."
RingCentral offers the advanced capabilities of traditional office public branch exchange (PBX) systems plus integrated voice/web applications. Unlike traditional PBX or office phone systems, RingCentral is hosted on the web and is delivered in a subscription-based, software-as-a-service model. Examples of services include:
- Setup and customization in minutes on the web
- Toll-free and local business phone and fax numbers
- Multiple extensions with voicemail
- Call-forwarding to any phone
- Message alerts on cell phones or PDAs
- Greetings recorded by professional voice talent
- Optional voice-over-Internet-Protocol (VoIP) lines.
Features such as these allow RingCentral's small business customers to use voice communications in new ways while offering cost-savings, ease of use and better functionality over traditional office phone systems.
"I was the COO of a service organization in my past position and spent thousands of dollars on a phone system. RingCentral's service is certainly an amazing value for the money and offers an easier to use and more innovative option," said Gerard Bottomley, President, Pacific Floor Products, a wood floor distribution company in Eugene, Oregon.
Vlad Shmunis, RingCentral founder and CEO added, "Our strong customer growth coupled with this investment from top VCs underscores that we're reaching a large and underserved market. Before, small businesses were left in the gap between costly enterprise services and insufficient consumer solutions. We're offering a new way for them to get the most out of a critical business tool, their communications."
About RingCentral
RingCentral provides an award-winning virtual phone system for small business. With top honors including PC Magazine's Editor's Choice Award and Small Business Computing's Excellence in Technology, RingCentral offers full-access to core small business phone services and helps improve productivity for over 50,000 customers worldwide. Headquartered in Redwood City, Calif., RingCentral is privately held with backing from Sequioa Capital, Khosla Ventures and DAG Ventures. For more information, please visit: http://www.ringcentral.com/.
Contacts:
Lynda Radosevich
(917) 922-7020
mailto:lyndar@ringcentral.com
Emily Call Borders
(415) 963-4174
emilyc@ringcentral.com
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