ooma raises $18M

VoIP device maker ooma announced an $18.3 million round of funding led by Worldview Technology Partners, which has invested in ooma before. Previous investors were reportedly bought out in the funding round, according to TechCrunch.

ooma, which makes the Scout and Hub VoIP calling boxes, launched in 2007 with the same "buy this box, pay nothing for phone service" pitch it has now, but saw little success early on due to customer confusion over total cost of ownership. Then ooma brought in Rich Buchanan, architect of the Sling Box's early success, as CMO, and the company cut prices and soon forged distribution deals with Best Buy and RadioShack that have brightened the company's chances of profitability.

The company also distinguished itself by promoting a premium offering with additional features that generates subscription revenues to augment the device sales. 

Correction: Previously, this story said ooma raised $14M in new funds, but the company actually raised $18.3M, according to a company spokeswoman.

For more:
- see the TechCrunch post on ooma's funding here 

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