Case Study: Pioneering Mobile Payments Rewarded with $240M Exit
Echovox - a Swiss company - was achieving strong results as a premium SMS provider focused mainly on the French-speaking European countries. Sensing the potential to leverage one of Echovox's products, payment via carrier-billing, we provided the earliest-stage financing through Newbury Ventures III, L.P. and affiliates, and Dr. Hassanein assumed the role of Chairman of the Board. We helped create a Silicon Valley branded subsidiary called ZONG to capitalize on the booming virtual currencies market.
The move to Silicon Valley paid dividends
Within 3 short years of launching in Silicon Valley in 2008, Zong was the world's established leader in carrier- billed mobile payments, serving 30 million customers across 250 carriers in over 45 countries. Our clients included Facebook, IMVU, and Habbo.
In 2011, eBay acquired Zong for $240 million in cash and installed the company at the helm of its mobile payments strategy. Zong's founder David Marcus now serves as President of PayPal.