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While mobile is a large business, it's not easy for start-ups. Just look at Amp'd Mobile. Despite raising $360 million, the company went bust.
But that's not stopping Daniel Neal. He is a veteran of the tech world and has been thinking about creating a new-fangled mobile service since the mid-1990s. His idea is to create a cell service to meet the needs of kids.
Well, he has come a long way since then. Now, he is the CEO of fast-growing kajeet. The company recently snagged $36.8 million in venture capital. The investors include heavyweights like Draper Fisher Jurvetson Growth Fund, Bessemer Venture Partners, Fidelity Ventures, Gabriel Venture Partners and InterWest Partners.
Basically, kajeet has a pay-as-you-go cell service for kids. "People fail to realize that kids are very smart," said Neal, in a BloggingStocks.com interview. "Kids often know more about the options on a cell phone then their parents."
Over the past couple years, kajeet has spent much time surveying kids, as well as their parents. There was also a 7,000 person beta test.
Interestingly enough, kajeet realizes that customer service is critical -- something that many mobile companies seem to forget. "Our customer service division is based in the US," said Neal. "We have a lot of Midwestern moms who handle the customer calls."
Kajeet is certainly getting traction. For example, you can buy the phones at places like Best Buy (NYSE: BBY), Limited Too and Longs Drugs Stores. And with a fresh infusion of funding, it's a good bet we'll be hearing a lot more from kajeet.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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