PALO ALTO — SignalWire, Inc., developer of an open-source enterprise communication platform, FreeSWITCH, has closed an $11.5 million series A funding round. Storm Ventures led the round joined by institutional investors Samsung NEXT and Sequoia Capital (Sequoia Scouts) and by fellow Silicon Valley OGs Erik Yang (CEO, Zoom), Dean Drako (Founder, Barracuda Networks), Yahoo’s Jerry Yang (AME Cloud Ventures) and Ron Neuenberger (AngelFire).
The funding will be used to accelerate the development of SignalWire’s Cloud communication platform, a new offering that allows developers to embed voice, messaging, and video capabilities into applications using advanced real-time APIs.
SignalWire’s open-source project began at ClueCon in 2006, and rapidly grew from a single voice-over IP call to millions of lines of code. It lays claim to the largest install base and most powerful feature set of any enterprise-grade communications platform. Its robustness, however, can be a barrier to developers without specific knowledge of communications technology, and it requires significant resources to deploy and manage. SignalWire Cloud allows developers of all skill sets to access the underlying power of FreeSWITCH technology via an elastic cloud platform.
SignalWire’s usage-based pricing model features minimal markup on the carrier services accessed using their APIs, such as per-minute and per-SMS charges, a move that could cause major disruption in a space occupied by API providers whose bottom lines depend on comfortable margins on these same services.
“Storm Ventures invests in technologies that have the potential to be game-changers, and SignalWire is a prime example. There is a reason that veteran SV technologists have come to the table to get involved in this: a team and technology that could potentially disrupt not just the CPaaS space, but the telecommunications industry as a whole.” According to Ryan Floyd, Managing Director at Storm Ventures, “SignalWire will bring a paradigm shift, a complete erasure of the distinction between telephony networks and computer networks, and we’re excited to be their partner.”