Monday, February 9, 2009

Once backed by local VCs, Ruckus shuts down

By Efrain Viscarolasaga

Ruckus Network Inc., a peer-to-peer digital entertainment sharing service for college students founded in Boston and backed by local investors Battery Ventures and Eastward Capital, has closed its doors.

According to a message posted on the company’s website, the company will no longer offer its service, as of last Friday.

Founded in Massachusetts in 2003, Ruckus aimed to bring legal downloads and file-sharing networks to college campuses. Using an ad-supported business model, the company raised a total of $43 million in venture funding since its inception, including a $10 million round in 2007. Other investors include Anschutz Investment Co. of Colorado, Columbia Capital of Virginia and Pinnacle Ventures and Shelter Capital, both of California. Ruckus moved its operations to Herndon, Va., in 2005.

Bentley College in Waltham was one of the company’s first customers, along with the University of North Carolina, the University of Georgia and Loyola College. As of late 2008, the company reported exclusive partnerships with 215 schools with users from over 1000 schools nationwide.