The Deal
Friday, October 24, 
1:59 pm

[Posted on March 3, 2008 - 5:13 PM]
allpeers_logo.pngTwo years after investing less than $5 million in browser-based file sharing startup, AllPeers, Index Ventures and Mangrove Capital Partners appear to be taking a loss on the deal. AllPeers said today it was shutting down.

A few years before investing in AllPeers, the two European venture capital firms came together to back superstar startup, Skype, which was acquired by eBay in 2005 for more than $2.6 billion. Index and Mangrove had hoped AllPeers would yield similar results. Here are their statements at the time of their investment into AllPeers in March 2006: 

Mark Tluszcz, managing partner of Mangrove, said that he was immediately struck by the similarities between AllPeers and Skype at the time of their initial investment. "Both companies have looked beyond the misleading stigma attached to P2P to find new, innovative and highly appealing ways to help people share and communicate."

Adds Neil Rimer, general partner at Index, "We think AllPeers has true viral potential because it allows people to share any type of media privately with their friends and this is something people already do a lot using other less intuitive methods."

Comparing a newbie to one of the most successful venture capital investments in history is dangerous and will almost always end up looking reckless later. That said, with the gains earned from Skype, Mangrove and Index have earned themselves the right to fail many more times. - Joshua Jaffe

Joshua Jaffe is general manager of

Post a comment


The Tech Confidential Network
The Tech Confidential Network unites the leading voices from around the Internet on the topics of high-tech startups, venture capital and investment exits. Bloggers and publishers that want to expand their readership and monetize their content are encouraged to apply to join the Tech Confidential Network.


Behind The Money: Hacking education at Union Square Ventures

Union Square Ventures' three partners on the firm's interest in education.

Windward Ho!

Startups In New York


Recent Entries
Monthly Archives
footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg

©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.