FreedomPop Raises $5 Million From Existing Investors
FreedomPop has announced today that they have raised $5 million in funding from existing investors in the form of an A.1 round. The company has raised a total of $16 million. Nextel co-founder Chris Rogers has joined FreedomPop as a board adviser. FreedomPop plans on using the funding to support their growing user base and meet the higher than expected demand for the Freedom Phone this year.
FreedomPop is expecting to launch the phone in August or September. The company received over 100,000 pre-orders the week that they announced their phone plans, which is three times the number that signed up for hotspots in the week after those announcements.
“We are growing fast and this new round will help accelerate growth further and provide the best product and customer experience possible to our users,” stated FreedomPop CEO Stephen Stokols. “We will also use these funds to increase our smartphone inventory ahead of our Android phone launch in the coming months.”
FreedomPop previously raised funding from Skype co-founder Niklas Zennstrom. We first wrote about FreedomPop in December 2011 and revealed that Zennstrom was the founder. FreedomPop has a goal of giving away a certain amount of free basic connectivity to users and would make money from premium services. FreedomPop has raised $4.3 million in funding in February 2013.
According to AllThingsD, FreedomPop will be shifting the release of their devices that run on Clearwire WiMax network to those that are on the Sprint LTE network. This will be accelerated by SoftBank’s investment in Sprint.