By Amanda Ciccatelli, TMCnet Web Editor

Phone.com (News - Alert), Inc., a cloud-based phone company focused on small business and entrepreneurs, has recently closed an investment from ff Venture Capital to propel the company’s continued growth. Additionally, the New Jersey Economic Development Authority (NJEDA) has also awarded the company an investment of $2 million.

“We are thrilled to have ff Venture Capital and the state of New Jersey invest with us during this exciting phase of expansion and innovation for our company and our customers. We are looking forward to implementing many new initiatives,” said Phone.com President and CEO Ari Rabban (News - Alert).

The funding from ff Venture Capital and the NJEDA is an infusion of capital that will be used to power Phone.com’s customer acquisition and technology development.  In addition, other investors in the company include San Diego-based hosting company TierraNet and serial entrepreneur Michael Mann.

“We primarily seek out companies with extremely capable management teams and a compelling business model,” said John Frankel, partner at ff Venture Capital and board member of Phone.com.  “Looking at how far Phone.com has come, and its potential for continued growth, it was easy for us to decide to provide additional funding now.”

Founded in 2007, Phone.com has experienced continual revenue increases and customer growth combined with outstanding service. Phone.com customers praise the company for the number of its innovative, easy-to-use features and skilled U.S.-based customer service team.

Phone.com will use the new funding to drive growth in customers and revenue, and to create jobs in marketing, sales and technology development positions in New Jersey. Rabban said, “We fully intend to flourish here in New Jersey and we are deeply committed to showing the NJEDA’s decision-makers that they made the right choice by investing in Phone.com.”

“In terms of growth, the model is clear for us:  We’re an e-commerce oriented phone company that gets customers online,” he said. “In terms of development, we are constantly upgrading and improving.”

Just last month the company completed a major upgrade, which was very well received by customers.  It made it easier for companies to sign up with Phone.com and upgraded its control panel for easier navigation.  

“I have known John Frankel for a long time and he has always been enthusiastic about and supportive of what we’re trying to do with Phone.com in bringing innovation to the telecom services market for small, entrepreneurial businesses with fewer than 10 lines,” commented Rabban. “He and ff Ventures have been an accelerator for us and now they’re putting VC funding behind Phone.com to promote growth.”

Since part of the funding available is state investment, Phone.com has agreed to create jobs in New Jersey, including engineers, developers, marketing personnel and much more. “We are committed to helping the technology industry grow in New Jersey in any way we can. New Jersey has helped Phone.com grow to the company it is today, and we are ready to give back,” Rabban explained.

Phone.com has been committed to New Jersey all along. In fact, even before Phone.com, and as a member of the New Jersey Technology Council (NJTC), Rabban wanted to incubate small businesses in order to develop startups in New Jersey.  

“I have been personally involved in mentoring tech startups for quite some time and that’s why NJTC asked me to join its board of directors,” he said. “I just thought we need to create something because we have lots of ingredients:  talent, the university system, etc.”