Motricity Grabs $40M in Funds

The RED HERRING reports that "mobile startup company Motricity said on Tuesday that it has raised another $40 million. The Durham, North Carolina-based company has now raised over $120 million to make it one of the best-funded startups in the wireless industry."

David Chamberlain at In-Stat thought "the funding shows how digital media over cell phones is becoming mainstream." He said, "I’ve been watching the wireless content business since 1993, but now we finally have fat enough pipes to deliver the content to cell phones."

Chamberlain also believed that "wireless content companies like Motricity are an important part of the ecosystem."

$120 million is a lot of cash to burn through. Hope their investors eventually see some return...