After Latest Financing Rounds, Fuze IPO looks more real

By : Taylor Stuart

If you are an investor into the underdog, then you have probably already heard of Fuze.

You could call Fuze an underdog because as profitable as the firm is, it has some serious competition. Its competition includes Alphabet-owned Google, whose billion dollar valuation and innovation strategies are enough to put a few firms out of business. There’s also Microsoft, which ranks as one of the most valuable companies in the world. And then there is CISCO, whose revolutionary tech made it a household name by its second year in the market. And then you put in Fuze, a small B2B communications company, to operate in this bracket with these iconic tech companies. That makes the underdog.

In 2006, a group of people came together to form a small tech company that cold cater for the communication interests of businesses. That group started a small company that they called Thinking Phones Inc. After a few years of successful operation, Thinking Phones Inc. hooked itself up with some M&As and changed its name to Thinking Phones LLC. After a while, Thinking Phones LLC became Fuze.

Fuze is a software company that allows businesses to conduct their operations effectively with good, reliable communication. Fuze markets itself as a Unified Communication as a Service (UCaaS) company. With over 12 locations and 1,500 clients, Fuze is a mid-level company focusing on small and middle-tier enterprises. Starbucks is one in the long list of Fuze customers.

So far, Fuze services are cloud-based and enable communication between businesses. Fuze enables corporates to conduct video calls and audio and video conferences with other businesses along their supply chain. Also, Fuze offers companies chatting options as well as access to real-time intelligence and analytics. Based in Boston, MA, Fuze is considered a small software company with impressive growth prospects.

And investors seem to recognize that fact too. In a recent financing round that ended in May, Fuze raised over $134 million from private investors and venture capitalists. On the last day of that round, the company got $30 million in pre-IPO investment funding from an unnamed private pension fund. The funding brings the private funding total that Fuze has raised so far to about $334 million since inception.

With Fuze’s current influx of cash, the company is more likely than ever to launch an IPO. Really, Fuze has two choices. It will either go public or sell out to the highest bidder. And because the management still wants to hold on to power, going public seems like the more attractive option. And an IPO is what the firm is aiming for according to Fuze CEO Steve Kokinos. Kokinos stated that he thought that “Fuze would most likely IPO in 2018”.

A Fuze IPO is very appealing to investors. The company is stable, and though it never released its valuation, experts estimate that it is worth some sizeable millions. Fuze intends to use the proceeds from the IPO broaden its portfolio and get a grip on Latin America and Asian Pacific markets.