San Mateo, Calif. – Akimbo, a maker of broadband set-top boxes that delivered video to televisions, and recently received $4 million in new funding to take the company in a new direction, has terminated most staff and is shutting down, VentureBeat reported. Demo.com adds that the company was unable to raise another $4 million from outside investors, and so laid off 14 employees while it hunts for a buyer.

"We went to market in February with a new strategy that was very exciting and very well received," Akimbo CFO Peter Shantel told Demo.com.

"We had recapitalized with $4 million from inside investors, and wanted to raise another $4 million from the outside. But the (video-on-demand) market is very crowded and there’s a credit crunch. The board thought because we couldn’t raise additional funds that we need to look for a strategic partner to buy us."

Founded in 1999, San Mateo, Calif.-based Akimbo started off selling set-tops, but recently switched gears to become a white label video provider.

The company had to date raised around $47 million in financing.

Related Links:
http://snipurl.com/2ab4y (VentureBeat)

http://www.demo.com/community/?q=node/72626

http://www.akimbo.com