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Jaxtr is a VoIP service that lets people call you from your website, social networks, emails and other online places by clicking on a widget that is linked to your phone.

Anyone can call you for free by using your widget and as soon as you sign up, you get 100 jax/month, equivalent to 100 minutes in the US (roughly 15 for europe). There are more features too well described on their website.

Today the news is that they just got $10 millions from a series A VC round. It’s surely a good news for the VoIP world and other “J”s VoIP services are looking forward to being the next to be funded I think.

Michael Cerda from Jangl well summarizes Jaxtr’s business model:

The model goes like this…build a simple web app that enables free VoIP, launch it in 200 countries, and watch it grow. So long as it’s free, it will grow (and, unfortunately, cost you). Then you look at your analytics and you realize that most of your business comes out of geographies that don’t hold value, because customers there are loyal only to your offer of “free” or “cheap” – when something cheaper comes along, those customers are gone. Your best bet is that someone buys you out at just the right time…

I stated many times that “FREE” is the preferred word by internet users. As long as you offer them something for free they love you. As soon as you realize that you are spending too much money and you cannot give them something for free anymore, they fade away quickly.

Most of the time VCs invest in a very well done business plan, in a strong and experienced management team and in companies which have a ton of users, they invest because the potential behind that company. Unfortunately sometimes it is a bet and only one or two among ten companies really succeed.

That said, for me the challenge is offering something that gives a real value to customers but that customers are willing to pay because they really perceive that value. That is what converts users into customers, their willingness to pay.

If you succeed in doing this, then your service is really worth for the market.

jangl, jaxtr, luca filigheddu, michael cerda