InPhonic – Profile
HQ: Washington, DC
Management: Founder/CEO David Steinberg is a youngster who previously founded and ran Sterling Cellular – a pre-Web distributor of Wireless products that is no longer in business. Thanks to his fantastic run-rate, Steinberg has been able to draw a stellar board, including Vice-Chairman John Scully and Mr. Board Seat – Jack Kemp.
Investors: The company has raised a total of $85M. In June 2003, Technology Crossover Ventures invested $56M.
Business Model: InPhonic private-labels eCommerce Web sites that merchandise wirless products, then InPhonic fulfills orders. It’s own Web site is Wirefly, but it also powers sites for Yahoo and AOL. The company grossed $119M in 2003 and Inc. Magazine calls it America’s fastest growing private company with nearly 6000% annual growth. It has fuelled some growth thanks to several acquisitions.
Competitors: A1 Wireless, Amazon.com, Wireless Galaxy, Let’s Talk.
Dirt: InPhonic (proposed: INPC) set terms for its IPO at 7M shares. Range is set at $15-$17. Deutsche Bank Securities and JP Morgan Securities are joint managers. We like the business and suspect the price will shoot up to hard to stomach levels.