I have. We used video and voice conferencing, instant messenger...whatever tool we could get our hands on to stay connected and manage the work. We delivered on time and achieved our goals.
But this only tells the half of it. On voice conference calls we talked over each other, none of our virtual meetings started/ended on time and I could hear my colleagues "multi-tasking" while in sessions. It was tough at times.
There were other benefits in that we eliminated travel costs and minimized our carbon footprint with fewer car and plane trips...but are virtual teams truly effective?
To get the answer to this question I asked the following on Quora - Must all founders be in the same city for a startup to increase the odds of success?
Click here to read what the experts say and draw your own conclusion on virtual teams.