Akimbo, an early entrant in the Internet Video game has shuttered its doors, as first indicated by VentureBeat and confirmed by NewTeeVee. Peter Chantel, CFO of the company told NewTeeVee that the nine-year-old company has held onto a skeleton staff that will find a buyer for the company. Akimbo raised over $56 million from big name VCs including Keiner Perkins Caufield & Byers and Draper Fisher Jurvetson. AT&T and Cisco were backers as well.
The company had initially started out offering niche content via progressive downloads using a special set-top box. The box didn’t fly, so company changed tactics, proving my point that standalone set-top boxes are difficult to pull off. Akimbo changed its chief executive, replacing founder Josh Goldman with Thomas Frank. The company recently raised another $4 million as it tried to become a content delivery service sans set-top box. That didn’t work either.
I am surprised that a company that laid off a few people recently and raised $4 million in February went out of business that fast. I made a few calls and gathered that some disagreements arose between the board and the CEO, Frank. There is more than what meets the eye. This one is dot-gone but it leaves behind an important message: anyone with set-top box dreams should be worried.