PhoneFree.com
Telecom · United States · Founded 1998
Leading internet-based multimedia communications company MoreLess
PhoneFree.com was an internet-based multimedia communications company that emerged during the dot-com era, founded in 1998 with headquarters in New York City. The company operated in the Voice over Internet Protocol (VoIP) market, providing services that allowed users to make phone calls over the internet. The leadership team, which included CEO Jan Robert Horsfall, was comprised of former marketing members from Lycos.
The business initially garnered attention by offering free domestic phone calls from personal computers to traditional phones, a model supported by advertising revenue. Users could download the company's software to make PC-to-PC calls globally for free and PC-to-phone calls within the U.S. The company's revenue strategy was diversified, relying on the sale of products, equipment, and other services to subsidize the free calling options. The target market included both residential customers and corporations seeking to reduce long-distance call expenses. A key service was the 'Global WebOperator,' which enabled users to connect two telephones anywhere in the world at rates cheaper than traditional carriers.
The company's trajectory shifted in response to market pressures, particularly a slowdown in advertising sales. In January 2001, PhoneFree.com transitioned from its free, ad-supported model to a fee-based service, charging 2 cents per minute for domestic PC-to-phone calls to cover the network usage fees charged by traditional phone companies. The company also planned to introduce hardware that connected to broadband modems, allowing customers to use regular phones for internet calls. Despite securing significant venture capital, including a $42 million Series B round in May 2000 from investors like Blackstone and Millennium Technology Value Partners, PhoneFree.com ultimately ceased operations and is now considered a deadpooled company.
Keywords: VoIP services, internet telephony, PC-to-phone calls, Jan Horsfall, dot-com era, telecommunications, online communication, free calls, Blackstone, Millennium Technology Value Partners, ad-supported, Global WebOperator, voice over IP, telecom service provider, New York startup, communications software, long-distance calls, internet calling, PC-to-PC, deadpooled
Company overview
PhoneFree.com company information
The essential company record, classifications and operating signals in one place.
- Status
- Operational
- Founded
- 1998
- Headquarters
- United States
- Employees
- —
- Open positions
- None listed
- Dealroom signal
- 16.0
- Investment activity
- 1 companies · latest Sep 2000
- Capital deployed
- —
- Preferred round
- ACQUISITION
Valuation & funding
PhoneFree.com funding history
Company financing events and reported valuations.
| Deal type | Date | Amount | Valuation | Investors | Source |
|---|---|---|---|---|---|
| LATE VC✓Equity / VC | May 2000 | $42M | $168M | EFO Holdings · Novo Networks · Cain Capital · Blackstone | — |
Growth signals
PhoneFree.com website traffic
Latest recorded traffic for PhoneFree.com is 300 monthly website visits.
Comparisons
PhoneFree.com compared with similar companies
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Capital deployed
PhoneFree.com investments and acquisitions
Recent portfolio relationships for companies that also act as investors or acquirers.
Talent graph
PhoneFree.com's talent
Source: Dealroom Talent Intelligence.
Global footprint
Where PhoneFree.com has talent and traffic
In the news
Latest news about PhoneFree.com
Recent press, funding announcements, and product moves mentioning PhoneFree.com — open to read from the original sources.
Market sentiment
What the market is saying about PhoneFree.com
An AI-synthesized read of the highest-engagement posts about PhoneFree.com on X over the past 7 days. We rank by likes & retweets, ignore corporate channels, and surface the themes that broke out from real people.
Reading the room on X — pulling top posts and synthesizing themes…
Source: X recent search ranked by engagement (likes + retweets) · Synthesis by Claude · Cached for 1 hour
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