S.F.-Based BitTorrent Recapitalizes; Returns Some Money to VCs

San Francisco -- BitTorrent, the San Francisco-based file-sharing software company founded by the creators of the peer-to-peer protocol, has returned the $17 million financing round that it announced in June to investors, opting instead to take $7 million at a substantially reduced valuation of $28 million, TechCrunch reported. The company's investors include Accel Partners, DCM and DAG Ventures. BitTorrent, which recently shuttered its web entertainment download store, cited the overall economy, inability to raise funds from other sources, and the fact that its business is "not gaining sufficient traction" for the drastic move. The company recently saw the departure of Ashwin Navin, its co-founder and president, and CEO Douglas Walker.
http://www.bittorrent.com
http://www.techcrunch.com/2008/12/14/bad-times-for-bittorrent-17-m-financing-undone-valuation-plummets/
http://www.techcrunch.com/2008/12/15/the-extraordinary-happenings-at-bittorrent/