Palm the once top smartphone maker received a cash injection from Elevation Partners, a venture capital firm on Monday in a bid to shore up Palms sagging fortunes.

As Palm (NASDAQ:PALM) struggles against big players like Research in Motion (RIM) and Apple (NASDAQ:AAPL) in the smartphone market the investment comes in good time, under the terms of the agreement, Elevation Partners will increase its investment in Palm by providing $100 million cash injection.

Palms latest smartphones, the Centro and Palm Treo are struggling to keep up with the iPhone and BlackBerry devices, and Palm have said the investment by Elevation Partners will help them push the new products and introduce new Palm product in 2009.

Palm saw a 39 percent drop in revenue in the quarter ending 30 November for a year earlier.

Source: Macworld