Voxer Secures $30 Million in Funding Led by IVP and Intel Capital in Major Expansion Efforts

Voxer’s Rise to the Top: A Five-Year Journey to Success

In November, Voxer, a walkie talkie mobile app that allows users to communicate with friends across iPhones and Androids, reached the top spot in the social networking app stores. However, this rapid success belies a more nuanced story of a company that has been five years in the making. Founded by Tom Katis during his time serving in the Special Forces in Afghanistan, Voxer was initially conceived as an enterprise solution for large dispersed groups. But it has evolved into something much bigger.

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A History of Innovation

Over the course of its life, Voxer has raised nearly $20 million, with the majority of funds coming from founder Tom Katis himself. This early support helped the company develop a unique understanding of voice messaging and Node.js, a Javascript-based system that it is now one of the largest users of.

The Turning Point

However, it was not until last November that Voxer’s user base began to skyrocket. Starting in a few Midwestern cities and spreading out from there, the app gained traction among high schools, small towns, families… essentially anyone who needed a quick and easy way to communicate. Today, Voxer has top rankings in the app stores for countries around the world, according to App Annie.

Growth Strategy

So how did Voxer achieve such rapid growth? According to Tom Katis and Gustaf Alstromer (head of growth and long-time mobile entrepreneur), it’s primarily due to word-of-mouth. New users who discover the app tend to get excited about its unique features – a mix of text messaging etiquette with the speed and ease of live voice.

The Future of Voice Messaging

The company believes that Voxer can become one of the key services in the mobile-first world, much like Instagram has for photos or Path intends to be for social networking. With smartphone penetration growing rapidly, the market size is now surpassing feature phones in both the U.S. and worldwide.

Investors Weigh In

IVP’s Dennis Phelps notes that Voxer has the potential to become the "800-pound gorilla" in voice messaging – a fundamentally different and more convenient way to communicate. He adds, "We’ve seen Zynga and others do it in games, we’ve obviously witnessed first-hand with Shazam, Pandora, Spotify and others in the music space."

Funding Round

Recently, Voxer closed a funding round of over $30 million led by Institutional Venture Partners (IVP), Intel Capital, and numerous angels. The company has confirmed the amount but declined to disclose the valuation, which is reportedly around $180 million pre-money.

Infrastructure and Hiring

The new funding will go towards building out infrastructure and hiring more engineers – particularly from the Node.js developer community. Katis’ long-term plan is to create a standalone business that could eventually lead to an IPO.

Conclusion

Voxer’s story serves as a reminder of the power of innovation, perseverance, and word-of-mouth marketing. From its humble beginnings as an enterprise solution to its current status as a top social networking app, Voxer has come a long way in just five years. As the company continues to grow and expand its reach, one thing is clear – Voxer is here to stay.

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