DigitalPath Flames Out – A Chico Mystery
DigitalPath, a Chico, CA-based wireless Internet company that landed more than $10M in venture funding over the past two years appears on the verge of closing its doors. We smell something fishy in woodland Chico. DigitalPath’s investor are Earthlink – which also uses DigitalPath’s services, Draper Fisher Jurvetson and its offshoot DFJ Frontier. Very oddly, these investors announced a $5.7M just a month ago including $3M in new funding and $2.7M in conversion of existing notes. Can Chico really be that expensive? Given that the company’s headcount once at 100, is down to 45, how could the company have burned through so much so quickly?
DigitalPath’s current CEO is Peter Bardwick, who was CFO at Marketwatch when it went public. On the board is Tim Draper himself who just a month ago went on the record: “DFJ is pleased to continue its support of Digitalpath. The company continues to be a leader in rapidly growing broadband wireless, and we are extremely pleased by their strong progress through 2004.”
Read – Digitalpath struggling to stay alive (Sacremento Bee)