Take Visto Out of Deadpool

(Update here) Mobile email company Visto Corp. is not on the edge of financial collapse, despite such insinuations this morning from ValleyWag. In fact, multiple sources tell me that the Redwood City, Calif.-based company raised an undisclosed $35 million venture round at the end of December, led by new investor Altitude Capital Partners.

Negative speculation about Visto may be inaccurate, but it’s hardly surprising given the company’s high capital burn rate. Part of the accelerated spend is related to Visto’s seeming addiction to litigation, including a recent win over VC-backed rival Seven Networks. More generally, however, the money is used to accomodate carrier clients whose SLA agreement enable them to demand Visto service on each new device they send to market.

But, to repeat the main point, Visto’s balance sheet is as strong as its been in some time. Not perfect, but strong.

I have no idea why the company opted not to announce the latest round (nor yet issue a regulatory filing), or the specific valuation. What I do know is that this was an up-round from the $51 million infusion it received last September. That deal also was an up-round, compared to a $70 million infusion in 2005 at a post-money valuation of approximately $155 million.

All told, Visto has raised just under $300 million in venture funding since its 1996 inception. Current investors include Allegis Capital, Blueprint Ventures, Draper Fisher Jurvetson, ePlanet Ventures, GKM Ventures, Meritech Capital Partners, Oak Investment Partners and Rustic Canyon Partners.

 

I’ve got an email into Visto CEO Brian Bogosian, but no word back yet.

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3 Comments

  • I wonder if some of the VCs tried to partially cash out on the latest deal. i mean they’ve put in a lot of money so far.

  • [...] Since then, it seems that Visto has continued to struggle — failing to go public as promised in 2006. So, instead, it seems to be falling on the all-too-popular tactic of falling back on patent infringement lawsuits when you’ve failed to make a real dent with your real business model. There was a bit of confusion last week as Visto had apparently kept quiet the fact that it had raised another $35 million. However, the folks over at Valleywag have come up with a pretty good explanation for why they might have wanted to keep it quiet. The firm that lead the latest round tends to invest in patent trolls. That is, they like to invest in patent litigation, rather than companies that actually have something to sell. The website for Altitude Capital Partners makes this pretty clear. They only care about the “intellectual property” a firm has, along with things like “Number and Quality of Potential Infringers” as well as how well the company has done in previous patent challenges. This seems like yet another example of a company that failed in the marketplace wanting to take money away from those who actually did deliver what customers wanted. [...]

  • [...] Since then, it seems that Visto has continued to struggle — failing to go public as promised in 2006. So, instead, it seems to be falling on the all-too-popular tactic of falling back on patent infringement lawsuits when you’ve failed to make a real dent with your real business model. There was a bit of confusion last week as Visto had apparently kept quiet the fact that it had raised another $35 million. However, the folks over at Valleywag have come up with a pretty good explanation for why they might have wanted to keep it quiet. The firm that lead the latest round tends to invest in patent trolls. That is, they like to invest in patent litigation, rather than companies that actually have something to sell. The website for Altitude Capital Partners makes this pretty clear. They only care about the “intellectual property” a firm has, along with things like “Number and Quality of Potential Infringers” as well as how well the company has done in previous patent challenges. This seems like yet another example of a company that failed in the marketplace wanting to take money away from those who actually did deliver what customers wanted. You can also include the fact jack Thompson Blames VaTech on Bill Gates – Wired News Jack Thompson has found out who is "potentially legally liable" for the Virginia Tech shootings: Bill Gates. Game Almighty reports that Thompson forwarded read on to check out what awaits you Permalink TrackBack [...]

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