Founded in 2002, Vonage quickly became a major player in Voice over Internet Pro

Question

Founded in 2002, Vonage quickly became a major player in Voice over Internet Protocol (VoIP) phone service. Using Internet connections instead of traditional phone lines, it offered customers an attractive flat rate of about $25 a month for calls to the United States, Canada, and many European countries. By its May IPO, Vonage had 1.7 million customers and more than half the U.S market for Internet phone service. Vonage claimed to be the fastest growing phone company in the United States. Revenues in 2005 were almost triple 2004 levels.

Explanation / Answer

Q ) What issues should the executives of a company such as vonage consider before deciding to go public ?/

A ) The phone company started to gain its growth as a Voice over Interbet Protocol This is done possible by using the internet connection services instead of the traditional phone lines.This created interest in investors after several years of low demand.The issues if the company goes public :

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Q ) How else could vonage have raised funds to continue to grow ? Compare The risks involved in iprivate equity going public.

A ) There are 3 types of private sectors that can be interesting to the investors :

The risks involved in investing in Private equity :

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