ifbyphone LogoHosted telephone application platform company Ifbyphone has raised an investment of $4.6 million in the second round of funding from five VC firms. The round was jointly led by Apex Venture Partners and Origin Ventures, and was participated by Spring Mill Venture Partners, i2A and Blue Crest Capital Finance, L.P. Here is the press release:

CHICAGO–Nov. 18, 2008—In the middle of an economic slowdown and a drought in venture capital funding, Ifbyphone said today it has secured $4.6 million in a second round of institutional funding from five venture capital firms.

Ifbyphone is a hosted telephone application platform company that provides small and medium-sized businesses with telephony features that enable them to create phone solutions that enhance customer conversations, increase sales and lower costs.

The funding round was jointly led by Apex Venture Partners and Origin Ventures,who also invested in Ifbyphone’s first round of institutional funding. They were joined by Spring Mill Venture Partners, i2A and Blue Crest Capital Finance, L.P.

“We view this new round of funding as a strong endorsement of our growth and expansion strategy,” said Ifbyphone founder and CEO Irv Shapiro. “It positions us extremely well to continue our expansion during these complex economic times.”

“We are very excited to be a part of the Ifbyphone investor group,” said Ken Green, co-founder and managing partner at Spring Mill Venture Partners. “We believe that Ifbyphone represents the next great wave of Internet-enabled business services, allowing small and medium-sized businesses access to capabilities previously only available to their larger competitors. This kind of service offers an opportunity to level the competitive playing field.”