FreedomPop has seemingly been on the verge of blowing up for the better part of the last three or four years. The mobile wireless company was established back in 2012 and found almost immediate success after the founder of Skype decided to grant the start up some seed money. Since then FreedomPop has grown exponentially and thus has shown themselves to be on the verge of becoming the next big name in the telecommunication market. For months it appeared that FreedomPop was considering a M&A agreement with the other telecommunication giants but that didn’t come to fruition and now CEO Stephen Stokols is looking to the future.
Partech Ventures Invests Big
For FreedomPop the only line that matters is the financial one at this point in time. In order to progress in the direction that they need, and make the other giant telecom companies sweat, developing venture capital was the way to go. In the final Series B round of investing FreedomPop saw an influx of investors thank to Partech Ventures. Partech Ventures committed nearly $30 million alongside a few other investment groups to FreedomPop and this isn’t new for the European venture capitalist company. Partech Ventures has backed over 21 companies that have gone public and 50 that have been involved in M&A agreements since 1982. It appears that FreedomPop may be their next big company as they made public how committed they were to helping grow the FreedomPop brand.
Telecom Market is Booming
Right now in America the only thing selling better than Seahawk playoff tickets is stock shares in the telecom market. Right now we are seeing various telecom companies, including AT&T and Comcast, work their bank accounts in order to eat up as much promising competition as possible. This economic climate gave FreedomPop the right amount of exposure to grow in a way that inspired confidence while also giving them the possibility of selling out, were that the right decision to be made.
However, after much deliberation CEO Stephen Stokols passed on the idea of engaging in M&A talks. Stokols reportedly passed on a $250 million offer saying that the time was “premature” to consider selling. This is a pretty big pill to swallow for FreedomPop as an agreement at that price would have been quite the rake for the once small time L.A. based start up. Still, with that uncertainty behind them FreedomPop is now able to focus on growing toward the future.
What FreedomPop offers is almost deceptively simple. The company gives away mobile carrier plans that come with a free amount of talk, text, and mobile data. Users are only charged for overages or if they wish to upgrade their services with the various plans available.