Vonage IPO: Tanks One Minute Later

The IPO was simply a way for Jeffrey Citron and other investors to get some of their money back. And to fuel the rest of the customer acquisition / marketing engine that Vonage is. IT World reports: "Shares of Vonage (ticker symbol: VG), an early leader in VOIP, started trading Wednesday and immediately fell off a cliff. After shares went on sale for US$17.00, the company closed its first day of trading selling at $14.85, and continued its descent Thursday, dropping another $1.85. The company raised about $531 million, which it will use to offset losses as it expands services -- but the key word here is "losses." The company is getting into some new areas and arranging interesting partnerships, offering products like Wi-Fi phones, but the money it raised is barely enough to cover its current deficit: $467.4 million."