For start up companies there is little in life more important than the ability to drum up buzz and get investment money to start rolling in. In the crowded world of the Silicon Valley it can be impossible to stand apart from the rest of the pack without adequate financial backing. For a 2012 tech start up by the name of FreedomPop, the latest round of Series B investments could be quite the game changer.
FreedomPop is a freemium wireless mobile carrier. Their business plan essentially revolves around giving users a selected amount of completely free features with the goal of encouraging them to sign up for more later on. FreedomPop on usatoday, led by CEO Stephen Stokols, offers various enhanced plans that offer more features and protection from potential issues such as overcharged roaming data, phone insurance, and more. While the business plan itself is unique, it still needs to have adequate backing in order to push into the next level.
Thanks to European venture capitalists at Partech Ventures, FreedomPop was able to rake in an additional $30 million in investment dollars in order to expand the scope of what they are trying to do. For the past few months the company has been dogged by persistent rumors that they were attempting to sign an M&A agreement with one of several different high profile companies. The search and success in finding more investment money all but put the final nail in those rumors. CEO Stephen Stokols took to the airwaves to clear any misconceptions, stating that it was ‘premature to consider selling’ at this point in time.
Right now telecom companies are blowing up in an attempt to corner the market. You have giant companies like Comcast and AT&T desperately trying to buy as many small start ups as they can to corner the market on what they are trying to do. This put the focus on FreedomPop, who passed the 1 million subscriber mark this year, as they were a viable option to get consumed and incorporated into another bigger giant in the industry. With this climate in place it would have been easy for Stokols and Co. to sell and move on to another venture, however the fact that they did not speaks volumes on their perceived value.
With new money in the bank it appears that FreedomPop will be pushing forward in their attempt to expand to bigger parts of the planet. Right now the company is focused on a soft launch in the United Kingdom that will give their basic plan (200 minutes/2000 MB of data/200 text) via a SIM card installation. After that the company hopes to be launched in Southeast Asia by the end of 2015 or early 2016 at the latest.