Total amount raised
$56.1 Millions
Latest funding date
Location
OpenPhone has successfully raised $40 million in a Series B funding round, attracting significant attention from investors. The platform offers a collaborative business phone system designed for startups and small businesses.
Keep reading to explore the intricacies of OpenPhone's fundraising journey and the investors backing this innovative platform.
What Is OpenPhone?
OpenPhone, founded in 2018 by Daryna Kulya and Mahyar Raissi, is headquartered in San Francisco, California. The company offers a smart business phone app that allows users to get a business phone number without needing a second phone or SIM card.
OpenPhone's platform integrates calls, texts, and contacts into a collaborative workspace, making it easier for businesses to manage communications. The app includes features like free calling and texting in the US and Canada, call recording, shared phone numbers, auto-replies, snippets, and group texting.
With a team of 51-100 employees, OpenPhone continues to innovate in the business communication space, helping startups and small businesses build stronger customer relationships and improve team collaboration.
How Much Funding Has OpenPhone Raised?
- Seed Round (August 2018)
- Amount Raised: $120K
- Date: August 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of their business phone app.
- Seed Round (January 2020)
- Amount Raised: $2M
- Date: January 2020
- Lead Investors: Slow Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support initial growth and development of the business phone service app.
- Series A (November 2020)
- Amount Raised: $14M
- Date: November 2020
- Lead Investors: Craft Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To pioneer shared phone numbers, team collaboration, and create intuitive apps for every device.
- Series B (April 2022)
- Amount Raised: $40M
- Date: April 2022
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To grow the team, enhance team collaboration, integrate with more tools, develop new features, and make OpenPhone more open.
OpenPhone has raised a total of $56.12M in funding. The current valuation is not publicly disclosed.
Key Investors
- Tiger Global Management
- Details: Tiger Global Management is a leading global investment firm that focuses on private and public companies in the technology sector. They have a strong track record of backing high-growth companies.
- Investment Focus Areas: Technology, Software, Internet
- Notable Investments: Facebook, LinkedIn, Stripe
- Craft Ventures
- Details: Craft Ventures is a venture capital firm that invests in early-stage and growth-stage technology companies. They are known for their hands-on approach to helping startups scale.
- Investment Focus Areas: Technology, Software, Internet
- Notable Investments: Airbnb, SpaceX, Slack
- Slow Ventures
- Details: Slow Ventures is a venture capital firm that focuses on early-stage investments across various sectors. They aim to support innovative startups with long-term potential.
- Investment Focus Areas: Technology, Consumer, Media
- Notable Investments: Pinterest, Slack, Nextdoor
- Garage Capital
- Details: Garage Capital is a venture capital firm that invests in early-stage technology startups. They are known for their focus on supporting Canadian entrepreneurs.
- Investment Focus Areas: Technology, SaaS, Fintech
- Notable Investments: Vidyard, Thalmic Labs
- Worklife Ventures
- Details: Worklife Ventures is a venture capital firm that focuses on companies improving the future of work. They invest in startups that enhance productivity and work-life balance.
- Investment Focus Areas: Productivity Tools, SaaS, Future of Work
- Notable Investments: Webflow, Tandem
What's Next for OpenPhone?
OpenPhone stands at the cusp of a significant opportunity to redefine business communication. With over 20,000 customers and $40 million in Series B funding, the company is poised to expand its communication and collaboration services. The integration with productivity tools like CRM and sales software, targeting SMBs, and replacing traditional PBX systems with a modern app-based solution, highlight the vast potential for growth.
Future fundraising seems promising, given the successful Series B round and the involvement of high-profile investors. However, challenges such as competing with established providers and ensuring seamless integration with various tools remain. As OpenPhone scales, maintaining customer satisfaction and support will be crucial.
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