BitTorrent is the global standard for accessing rich media over the Internet. They have undone the $17 million financing early this year and the money has been returned to investors DCM, Accel Partners and DAG Ventures.

The company already admitted that they are “not gaining sufficient traction,” and from the same investors they have a “substantially reduced” and closed a new $7 million round of financing.

Economic is in crisis and down valuation is common. But the fact that they have the entire rounds of financing and returning capital to investors is not the sign of significant distress at a startup.

BitTorrent has also made some dramatically changes in their executive team, Doug Walker has resigned as a CEO and Eric Klinker was promoted from CTO to CEO of BitTorrent Company.

Founding team has also been diluted to the point that they only own a very small percentage of the company. After the new financing of the company, common stock and stock options account for only 11.4%.

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