While Radio Handi does clever things like easily broadcast audio on the net, it is conference call part of the business that has been the driving this bootstrapped start-up based in San Francisco. The company had raised a total of $225,000, with a big chunk of it coming from founder Brian McConnell.
When we asked him why sellout now, before getting the company to the next level, he said that telecom is a capital intensive business, and the track record for telecom start-ups hasn’t been that stellar.
“When we surveyed the previous ten year history for telecom startups, we saw that relatively few small to mid-size companies were successful VC investments,” he says. “Many of them are/were successful companies, but very few generated the kind of returns that make a VC backed deal attractive to founders. Deals like Skype are very rare in the business.”