Ztango.com Wires VCs $38M

Wireless Internet solutions provider Ztango.com Inc. recently netted $37.8 million in its second round of venture funding. Prior to this deal, the company had raised $13 million in a lengthy eight-month financing completed last December.

The Reston, Va.-based issuer decided to sell the entire offering to General Atlantic Partners, even though the deal was oversubscribed and had received interest from other firms.

“If we had brought in seven or eight venture capital firms, we wouldn’t have necessarily gotten their hearts and souls,” said John Harris, chief executive with Ztango.com.

While the company isn’t in the midst of marketing a follow-on round, Harris said it was possible that some strategic corporate venture investors could be brought in at a later date.

If such a Series C deal were to occur, it would contradict a published report that claims the company is preparing for an initial public offering this July. Harris declined to confirm or deny that story.

Ztango.com develops and markets wireless Internet software solutions and services that help extend Internet-based applications to wireless handsets and devices. Its clients include e-companies, wireless network operators and corporations.