GreatCall Inc., operator of the Jitterbug cellular phone network aimed
at elderly users, has a new spring in its step, landing $38 million in
a Series C
round of venture capital.
The round, announced Tuesday, was led by Court Square Ventures and
included equity investment from Japan's Sumitomo Corp. in the form of a
conversion of earlier issued convertible notes, as well as previous
equity investors Steelpoint Capital, Charles River Ventures
and Nauta Capital. Terms of the deal were not
released, but GreatCall chief financial officer Bill Kuncz said the
round was priced at an increase to the company's $38 million second
round of July 2007, reflecting growth in the company's user base.
Kuncz says GreatCall will use some of the new
capital to develop new services and applications, though the company
has no significant infrastructure expenses, operating solely through
the leasing of roaming coverage from other carriers. Most of the new
capital will go to continued marketing of the Jitterbug service
including expansion of programs with retailers and expansion into
additional sales channels.
GreatCall, which was formed in March 2005 and launched Jitterbug in November
2006, provides personalized cellular phone service to customers
uncomfortable with traditional cellular offerings. The company's
services feature simple handsets and service offerings that include
personalized operator assistance in programming frequently called
numbers and other technical help charged against customer minutes.
"The vision was to provide personal service to the boomer and senior
market of people unfamiliar with cell phones," Kuncz says. "It's a
service where customers don't have to listen to rap music on hold, and
where operators greet them by name."
The company was founded by Schaumberg, Ill.-based Motorola Corp.
veteran Martin Cooper and longtime cellular industry veteran Arlene
Harris, and the new investment unites the pair with Jim Murray of Court
Square, also a longtime industry veteran and author of "Wireless Nation:
The Frenzied Launch of the Cellular Revolution in America," a history of
the mobile telephone industry. Kuncz said the company targeted a small
group of investors with experience in the cellular industry to bring
strategic value to the company.
"We were looking specifically for investors who understood the wireless
space, and Jim Murray is one of the preeminent investors in the
industry," Kuncz says. "We think we talked to the most sophisticated
investors that understood what we are doing, and we are delighted with
the progress we have made with the current business model."
-- Clifford Carlsen
See June 24 press release from GreatCall
For more see
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