VisiCorp
| Company type | Public |
|---|---|
| Industry | Software |
| Predecessor | Personal Software, Micro-Ware |
| Founded | 1977 |
| Founder | Dan Fylstra |
| Fate | Renamed Paladin Software after merger |
| Headquarters | Massachusetts , United States |
| Products | Microchess, Visi On, VisiCalc, VisiDex, VisiFile, VisiWord |
VisiCorp, initially known as Personal Software, was a pioneering publisher in the personal computer software industry, recognized for titles such as Microchess, Visi On, and VisiCalc.
History
Founded in 1977 by Dan Fylstra, Personal Software merged in 1978 with Micro-Ware, a Toronto-based company led by Peter R. Jennings. Ownership of the merged entity was evenly split between the two parties, and the company continued under the Personal Software name. Among its early releases was Jennings' Microchess, initially developed for the MOS Technology KIM-1 and subsequently adapted for platforms including the Commodore PET, Apple II, and TRS-80. The company achieved significant success in 1979 by publishing the groundbreaking spreadsheet program VisiCalc, created by Software Arts.
In 1980, after securing funding from investors Arthur Rock and Venrock, Personal Software shifted its strategic emphasis toward business-oriented applications. The distribution model evolved from mail order to a combination of regional distributors and direct sales channels, with direct sales accounting for approximately two-thirds of total revenue. By May 1981, the company broadened its product line under the "Visi" brand umbrella to include offerings such as VisiDex, VisiFile, and VisiWord. The following year, it rebranded as VisiCorp Personal Software, Inc., and launched Visi On—the first graphical user interface designed for the IBM PC.
Bill Gates encountered Visi On at a trade exhibition, which influenced Microsoft's development of its own windowed GUI. At that time, VisiCorp was larger than Microsoft; however, merger discussions collapsed due to disagreements over board control. Microsoft's Windows ultimately gained an advantage because of its compatibility with a wider range of hardware and a lower price point compared to Visi On's higher cost and more restrictive system requirements. Microsoft later introduced its own spreadsheet application, Microsoft Excel.
Several notable figures emerged from VisiCorp, including Ed Esber, who later led Ashton-Tate; Mitch Kapor, founder of Lotus Software; Rich Melman, co-founder of Electronic Arts; Bill Coleman, founder of BEA Systems; Bruce Wallace; and Brad Templeton, founder of early internet company ClariNet and former director of the Electronic Frontier Foundation.
In January 1983, Kapor's Lotus released Lotus 1-2-3, which rapidly ascended to become the leading business software by March. Meanwhile, sales of VisiCalc had already peaked and were in decline. VisiCorp paid Software Arts between 36% and 50% of VisiCalc revenues—significantly higher than the standard royalty rates of 10-15%. In 1982, VisiCalc represented 70% of VisiCorp’s revenue, dropping to 58% in 1983. Despite generating $43 million in sales that year—ranking it as the fifth-largest microcomputer software company worldwide—VisiCorp struggled with falling VisiCalc sales and disappointing results from Visi On. InfoWorld characterized the company as being "under siege," comparing its trajectory to that of Osborne Computer’s cautionary downfall.
In September 1983, VisiCorp initiated legal action against Software Arts over ownership of the VisiCalc trademark. The dispute was resolved in September 1984 with a settlement requiring VisiCorp to pay $500,000 in royalties. Under this agreement, Software Arts retained the trademark rights but not the "Visi" prefix, which remained with VisiCorp for use on other products. Amid continuing financial difficulties caused by declining sales and poor performance of Visi On, president Terry Opdendyk stepped down in July 1984. Subsequently, the company sold the technology behind Visi On to Control Data. Later that year, plans were made to merge with Paladin Software, a firm founded by former employee Roy Folk. Although VisiCorp survived this merger, it adopted the Paladin name due to its ongoing financial challenges.