Vonage warns of bankruptcy; VCs run for cover

Every public company in the U.S. has to file a Form 10-K with the Securities and Exchange Commission. A 10-K is basically a company's annual report, except it's not glossy, is very detailed and is submitted under oath. There's a section where companies talk about all the challenges and all the possible negative factors they face in the coming year. So it's really no surprise that Vonage's 10-K mentions that there's a real threat of bankruptcy. It's not imminent, but given the last couple of months, it's certainly prudent for investors to be told of the possibility. Venture capitalists, for their part, are taking a lesson from Vonage's travails and are turning their attention away from carriers and toward VoIP equipment and software makers.

For more information about Vonage and VC fallout:
- read this article from Red Herring

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