AllPeers Shutters

Add another Web 2.0 company to the dead pool; AllPeers has announced that their service shut down today, with the splash page now nothing more than a link to the blog as well as a “condolences” email link to the company email.

AllPeers was probably a bit before its time and way underpromoted aside from its initial entry. Designed as a browser plug-in, it allowed you to select folders that contained files that could be shared, specify who could access the files, send messages out to anyone waiting for the files you were adding to a share folder, as well as view files shared right within the browser. It was a far more elegant solution for people to share files than BitTorrent, although they did add support for BitTorrent last year.

They received positive reviews from TechCrunch with mixed reviews from CNET, who noted that in order to download files, you also had to have installed the AllPeers plug-in, often a deal-breaker with people who don't want to install one more thing on their PC, especially if they were already using BitTorrent clients. Investors must have agreed with CNET, as the company never went beyond a Series A funding round in 2006.

Profy's AllPeers review back in 2006 noted that promised features to monetize downloads were still missing, and it's likely that the limited number of users combined with the lack of a revenue stream doomed the company.

2008 feels like it is started out as the Year of the 2.0 DeadPool, with companies dropping right and left. Other companies should start taking note that the deadpool entrants all lack a sufficient revenue stream, and that counting on a buy-out or additional funding rounds as your revenue model shouldn't be a plan.