NEW YORK, NY (PRESS RELEASE – December 10th, 2008) – M5 Networks announced Edison Venture Fund completed their $1.4 million follow-on investment bringing the cumulative investment to $8 million. Milestone Venture Partners and Greycroft participated in this financing. The use of proceeds will expand sales, marketing, client support and product development.
M5 provides small and medium sized businesses with Voice as a Service. This high-end Voice over IP hosted phone system avoids the expense, maintenance and obsolescence of on-premise phone systems. Multiple offices, remote office workers, telecommuters and road warriors are brought together seamlessly.
“Edison’s experience and network are invaluable resources,” observed Dan Hoffman, CEO of M5. Joe Allegra, General Partner, and Bill Wagner, Edison Director Network member, serve on the board of directors. Wagner is the Chief Marketing Officer of Vocus (NASDAQ: VOCS) and former Chief Marketing Officer of Fiberlink, both successful Edison investments. “M5’s domain expertise outpaces the competition,” commented Joe Allegra. “The company’s strong renewals and new clients are accelerating growth,” noted Tom Vander Schaaff, Vice President of Analysis, who led the diligence process.
About Edison Venture Fund
Established in 1986, Edison partners with entrepreneurs, service providers and other financing sources to build successful companies. Edison provides capital and value-added services to expansion stage ($5 to 20 million revenue), information technology businesses. Initial investments range from $5 to 8 million. Edison typically serves as a sole or lead investor in financings up to $10 million. In addition to providing expansion capital, Edison funds management buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison’s investment professionals are based in Lawrenceville, NJ, McLean, VA, New York, NY, Needham, MA and West Chester, PA. Industry specialties include application software, communications, financial technology, interactive marketing, healthcare & pharmaceutical IT. Edison’s successes include Axent, Best Software, Dendrite, E-Transport, Gain Capital, MathSoft, Princeton Financial, VirtualEdge and many other information technology leaders, which have a combined market value exceeding $5 billion. Edison currently has $550 million under management and is actively making new investments.
Edison has financed and guided over 31 companies specializing in communications. Active investments include Exclaim, Fiberlink, Innovectra, Fishbowl, Logic Tree, Tangoe and Telarix. Successful communication exits include DSET, Eastern Telelogic, EIS, Insoft, Netegrity, Tylink, Visual Networks and VSpan. Edison has invested in 13 New York-based companies including Correctnet, eChalk, Edgetrade, FinePoint, Giant Realm, Operative , Pinnacle Taxx and SmartAnalyst.
About M5 Networks
M5 Networks is the leader of “Voice as a Service,” a breakthrough solution for business phone communications. M5 Networks allows clients to acquire phone system capabilities as an on-demand, managed service over an IP network optimized for voice. M5 serves a rapidly growing base of mid-sized businesses. Our solution is distinguished by rich capabilities and unmatched service that one would expect from an industry leader.
M5 Networks provides business-strength Voice-over-IP phone systems, delivered as a disaster-proof Internet-based hosted service. M5’s delivery model facilitates the rapid deployment of advanced phone system functionality and drives a consistent voice experience as businesses become increasingly dispersed, malleable and 24/7. M5’s simple pricing model offers companies a low cost-of-entry to a feature set that has traditionally required large capital expenditure and dedicated IT resources. Customers offload phone system support and maintenance hassles to M5’s experts. As an Internet-based application, M5’s voice platform frees all voice-related data and commands to mash with other applications, driving business intelligence, improving customer service, and enhancing enterprise application effectiveness. M5 has over 850 customers, numerous industry awards and recognitions, and is headquartered in New York City.