Sector Focus

Case Study: Vocalocity

Bringing a SaaS Solution to the Small-Medium Business Market

Vocalocity, a Fund VI portfolio company, is a provider of hosted private branch exchange (“PBX”) communications services via Voice Over Internet Protocol (“VOIP”) to small businesses, delivering “big company” communications features and functionality with a low capex, SaaS pricing model. NMP was attracted to Vocalocity by its competency in online marketing and lead generation in the small business market, a key market differentiator. Our deep understanding and experience with SaaS metrics helped us thoroughly evaluate the opportunity and were important factors in the founders’ decision to move forward with NMP.

NMP Involvement:

  • Invested in Vocalocity in 2007, with an initial investment of $3 million
  • Assisted in recruiting new CEO and other management
  • Assisted in attracting new investors
  • Helped consummate an acquisition of a competitor, adding significant scale

Outcome:

The company grew to serve approximately 100,000 users and surpass a $50+ million revenue run-rate. In November of 2013, Vocalocity was acquired by Vonage for $130 million.

Information Technology Sector

NMP has had a number of very successful IT investments since the late 1990s, including nFront in online banking software, Adjoined in IT consulting, Employease in HR software, SecureWorks in the managed security space and Vocalocity in the hosted communications space. The Firm has developed particular expertise in Software as a Service (SaaS) and B2B / enterprise technologies, and the team has a deep understanding of the classic customer acquisition to life-time value calculations that determine the success of a SaaS-oriented business.

Within information technology, we are particularly focused on the following sub-sectors:

Software as a service
  • Hosted VoIP, email and other productivity tools
  • Human Resource applications
  • Marketing automation
Cloud Migration and Services
  • Cloud migration tools and workflow applications
  • Public/Private cloud services
Communications and Video Infrastructure
  • Applications that manage video delivery for all untethered devices
  • Broadband infrastructure and management tools
  • Mobile application delivery
Ecommerce
  • Platform companies that deliver unique value to the consumer
  • Big data tools for improved targeting
  • Pricing and analytics
  • Payment technology focused on mobile transactions
Internet Security
  • Financial fraud prevention and detection
  • VoIP Security
  • IP reputation monitoring and defense
  • Managed services