CMGI denies VC operations out of cash

The report in the San Jose Mercury News on Friday said CMGI's @Ventures was out of money and was unable to fund its portfolio companies, citing "dozens of people who have worked with the firm."

"The story is not accurate," CMGI spokesman Bill White said Friday. "We are still committed to the @Ventures fund. We said months ago that there were going to be changes, scaling back in some areas, but @Ventures is still funding companies."

David Satterfield, business editor at the Mercury News, said Friday afternoon that the paper stood by the story, adding that they spoke to CMGI executives Friday after being unable to get comments earlier.

"They said their release was not in response to our report but that their board today has decided to reaffirm commitment," Satterfield said. He said they planned to update the online version of the story with CMGI comments. --Dawn Kawamoto, Special to ZDNet