Sotto Wireless, the well-funded Bellevue startup led by former AT&T Wireless executives, has hit a fork in the road.

Nelsen

A tipster told me earlier this week that the company had laid off a large chunk of its staff and was looking to sell the intellectual property.

But in an e-mail, Sotto Chief Executive Rod Nelson said the company has restructured and is pursuing a new strategy. He writes:

"The Sotto Wireless team is re-focusing the company to license its technology to carriers. This technology will allow these carriers to provide all-in-one business communications services that combine the mobility of cellular phones with the functionality of office phone systems into one simple service. As a result of this shift in corporate direction, Sotto Wireless is shutting down its other sales channels. This decision allows the company to be more efficient with its resources, but did require the elimination of certain positions."

Nelson -- the former chief technology officer at AT&T Wireless -- did not say how many people were let go or provide a reason for the strategy shift.

Sotto is backed with about $8 million from Ignition Partners and VantagePoint Venture Partners.

Silicon Valley venture capital firm VantagePoint also ran into tough times with its investment in Seattle mobile startup 3Guppies, whose assets were gobbled up by Myxer earlier this year after layoffs.