Peer-to-peer content delivery system BitTorrent has raised a whopping $17 million more in a third round from its venture backers on Sand Hill Road, DCM and Accel Partners, according to a new regulatory filing. The money brings the 7-year-old’s total funding to $46.4 million.
DAG Ventures, a firm known for marking up the later-stage deals of influential firms like Kleiner Perkins and Accel, is also an investor in BitTorrent’s Series C. (DAG has teamed up with Kleiner on at least 51 rounds for 30 companies, according to Thomson Reuters data; it has teamed up with Accel on at least 30 rounds for 15 companies.)
I hope it's not a case of good money chasing bad. Though BitTorrent today signed up two game developers that will use its technology to stream their massively multiplayer online games to customers (Aeria and IAHGames), the company is still struggling to shed its reputation as a way for people to illegally share music and video over the Web. Though it wants to be a legitimate technology through which media companies can stream videos over the Internet, its ideal business partners