Dialpad Communications was an early pioneer in the Voice over IP industry that was founded in 1999 after spinning off from Serome Technologies in Seoul, Korea and moving to Santa Clara, California in the United States. Dialpad's business model was to give free PC to Phone calls to the US and to monetize the traffic through advertising to the dialing client. This led to rapid growth internationally as Dialpad grew to over 14 million registered users in its first year.
Dialpad raised $68 million in Series A and Series B rounds of venture capital financings in 2000 from @Ventures, Serome, and Sterling Payot Capital, among others. As the internet bubble burst in 2000 Dialpad pivoted its business plan away from advertising and began charging a small per minute fee for international calls. The company grew to be a profitable leader in the industry and was acquired by Yahoo! in June 2005.
Dialpad was succeeded by Yahoo! Voice later that year.