Vonage Gets More Cash

In a move that likely is viewed as diluting to pal Jeff Pulver who has some remaining shares in Vonage, the Wall Street Journal has reported that Vonage will announce that they raised $250 million dollars as early as Monday and that it is the last raise of cash before their IPO.

I'm not buying it, and neither is Om Malik, who does his own brand of quantitative analysis. Like Om points out, Vonage is a company looking for an exit, and in my mind they were down the road the right way up until the last raise up.

I don't buy their two billion dollar value either. One million lines or not, their cost per acquisition of each customer is too high, plus the consumer market will soon figure out that they can get phone calling on a Pay as You Go basis for less. Skype is already proving that, as will Yahoo and Gizmo project.

Someone needs to tell the Vonage guys it's time to take the money and run.