Desktone gets $5.4M in New Venture Capital Financing
March 25, 2010
On March 3rd, Massachusetts-based Desktone Inc. announced that it raised $5.4 million in venture capital investment of a planned $12.6 million round of equity financing. According to Masshightech.com, although the filings with the US Securities and Exchange Commission did not list the investors, the speculation was that they were some of the venture capital investors that previously backed the company in 2007 – Highland Capital Partners, SoftBank Capital, Citrix Systems and China-based Tangee International.
Desktone offers highly scalable, end-to-end virtual desktop solution that is designed specifically to enable service providers to offer hosted, subscription-based desktops as a service. The company has not commented yet whether the expansion capital was needed for product development or for ramping up of the marketing efforts. If I have to guess, I would pick the second reason, as the Desktop as a Service offers the possibility for up to 35% (according to Desktone) savings on capital expenditures and the market has not been tackled aggressively yet.