FreedomPop is all about providing free services to individuals on their phone. With the skyrocketing price of most mobile providers, it can be rather difficult to find someone who charges a fair price. FreedomPop wants to offer free services to those interested in it, but in order to offer free mobile data and calling services, it does become rather expensive to open and to maintain. That is why the recent fundraising outreach the program obtained is extremely important. FreedomPop recently received $30 million in funding in order to expand its free mobile services.
The company has been around since 2012 and it has been spreading out from LA since it initially opened up. Basically, the company provides bare bone services without charging anyone for using it. This way, it is possible for someone who just doesn’t want to spend hundreds of dollars a month.
Multiple other carriers have attempted to buy out the upstart company in recent years. Whether it is to take advantage of the networking elements the company has put into place or to simply buy out the competition (or a bit of both), FreedomPop has turned down all of these different offers and has instead raised nearly $50 million in three years. The original seed money came from Skype’s founder and it has quickly grown into one of the fastest growing mobile companies in the United States as it has more than a million subscribers.
Now, the company is a mobile virtual network operator, which means it does not own any of the wireless infrastructure but instead simply rents it from larger companies. It purchases the data from Spring at wholesale rates, which is similar to how Google works as it buys data from T-Mobile and Spring. However, FreedomPop is giving the services to customers for free.
Sultan Alhokair works as the project manager at the Retail Group of America and is also a Venture partner at Valia Investments. Most of his professional life has been about finance and investments. Currently, he is studying a Bachelor of Science Degree in Business Administration with special interest in Finance insurance and entrepreneurship at Northeastern University, Boston, MA.
As a regional manager at Retail Group of America, his work entails linking up several fashion departmental stores to enable them lip more through networking, brand identity and utilizing the products available. At Valia Investments, he seeks out for new start-ups that would qualify for the seed investment. He searches for the best possible investments that the firm would fund to help them come up. There are several factors that he considers when selecting a firm from a number of them for investment. Here is a breakdown of what he looks for.
Sultan Alhokair looks for start-up that has a compelling story that would show that the business really would achieve its goals if some funds were injected into it. Sultan Alhokair suggests such a business puts forward the best possible argument and its owners have the self-drive to make the idea a success.
Sultan Alhokair also looks for a business with a potential for a solid return on investments. Investors are always looking for ventures that would bring their money back as soon as possible. If an idea is able to achieve this and bring much more to the investors, angel financiers would be too happy to invest in it.
A company has to show that there is a need for the product that it is introducing in the market for it to qualify for seed funding. There has to have a gap in the market for which the product satisfies. Start-ups need to have a good projection of the sales potential of their business beforehand.
He also looks at businesses with viable exit strategies. While it may take some time for start up to get on its feet, sometimes things could be on their way down and not working out at all. A viable exit strategy enables the investors get much of their initial investment from the business before it winds up. This lowers the amount of loss the investors make from the failing business venture. Follow Sultan Alhokair on InstaGram to keep up to date with his activities.