(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.