Akimbo, online video delivery company, throws in towel for good

May 22, 2008 | Matt Marshall | Comments |

updated
We’re hearing that Akimbo, the San Mateo, Calif. video set-top box company that raised millions of dollars in fresh funding less than three months ago to make a fresh start in a new direction, has just thrown in the towel anyway.

In February, Akimbo brought in a new management team, $8 million in fresh funding [Update: Apparently, the company only raised $4M; the original announcement of $8 million had been a targeted amount, but it only ever raised $4M] and refashioned its technology to help video publishers deliver their own video online. It also wanted to help publishers monetize the video, by offering them ways to charge for pay-per-minute content, run advertising and subscriptions.

I have no idea why the company closed its doors so fast on this second attempt. The latest batch of money came from Draper Fisher Jurvetson, Zone Ventures, Blueprint Ventures and AT&T. DFJ, Kleiner, Zone and Blueprint were original backers of the first incarnation of the company. The company had raised a total of $47 million.

From what we hear, the company shut its doors today, with the entire staff of more than a dozen being terminated except for three to stay on to help an orderly shutdown.

The company had initiated a round of layoffs recently. The company was apparently then trying to sell itself, but time ran out and the board finally decided to call it quits.

I’m trying to reach the company for comment. If there’s a lesson, it’s probably that this video industry is red hot, but also frenetic, and way saturated, and that a company is toast if it’s just a step behind.

Next Story: Microsoft’s Silicon Valley Road Show: Affordable surface computing, programming for kids and more
Previous Story: Twitter may have more serious issues than its downtime

Bookmark and Share

Tags: , , , , ,

Photo of Matt Marshall

About the Author, Matt Marshall

Matt Marshall is editor and CEO of VentureBeat. Follow him on Twitter at @mmarshall, and follow VentureBeat on Twitter at @venturebeat.

  • DavoRider
    The $8 million figure is a myth - not sure where it came from, but it's simply not true. The company raised a little in 2008 (I heard as much as $3 million), but that obviously was not enough.
  • re: "If there’s a lesson, it’s probably that this video industry is red hot, but also frenetic, and way saturated, and that a company is toast if it’s just a step behind."

    Not sure I agree with that assessment. Akimbo started out as a "box maker" with a content play. The market for Internet STBs never really evolved, and the company tried shifting models (several times) to stay alive. I don't think it's as much about the industry as much as it is chasing a business opportunity that doesn't exist. In my opinion, the company had noble ambitions, but a fundamentally flawed offering, and spent way too much money digging the wrong hole.
  • Fourteen employees were laid off yesterday. CFO Peter Shantel told me today that Akimbo raised $4 mil from current investors but couldn't raise another $4 mil from outside investors and so let nearly everyone go while it hunts for a buyer since it has 3 customers and new product. See story: http://www.demo.com/community/?q=node/72626
  • Site still up. hehe :p

    That's sad indeed, maybe they could share their experience....
  • AKIMBO! ARISE UP AND WALK!

    Akimbo can still save itself from the nails in the coffin. What Akimbo is lacking is leadership w/ vision and innovation. Okay, here's the scenario of what Akimbo needs to do to save itself and it's employees.

    We all know begining next year in Febuary 2009 all major broadcasting is going digital [wake up Akimbo class is in session]. There is an estimate of ten's of millions of homes that will be w/out "tv converter boxes" to make that transitition. [Will someone please tap Akimbo on the shoulder and wake him up please.]

    How hard could it be to covert all those set top boxes that Akimbo is known for making into "tv converter boxes?" The Goverrnment is supposingly giving out coupons valued up to $40 on a purchase of one of these tv converter boxes. http://www.dtv2009.com .

    Akimbo, holla @ your boy. thirtygrand@yahoo.com
  • Spectrum
    I started IVNewsday.com last October after years of research and TV GM experience. The model is starting to turn a profit. I started on a shoestring budget. Who invests millions without a winning model?
  • johnbear320
    I used to have Akimbo when it had set top service , I really liked it , I was very angry when they ceased offering it, I worked 3rd shift at the time I had it and really liked being able to watch on REGULAR TV set from in bed and fall asleep to it if I chose rather than being hogtied to a computer in order to watch it, I quit the service . Its too bad they were not more aggressive in getting new accts, I cannot help but wonder how many customers were completely lost due to the termination of set top services.
  • edhardy622
    UGGs became ubiquitous among Southern California surfers and Southern California downhill skiers, and from there, Uggs, which name comes from the Australian
    http://www.uggboots365.co.uk
  • I grew up being called alice.