VC funding for torrent clients ...
... is like using actual wads of currency to fuel a steam engine train.
I guess The Train will probably move a few metres after you shove in a couple of million dollars. But where's the cash flow? And where are the profits?
Did someone say 'ad-funded model'?
Ad-based programs are all fine, but one needs to remember that any business is as smart/profitable as the dumbest player in the market. In the absence of a significant differentiator, Pando is just as profitable (or unprofitable, as in this case) as every other Torrent player. Pando seems to have no differentiator today.
_________
Torrent is no doubt a great technology, but it is a zero-dollar business. Torrent is in the same league as other web technologies like social networks and blogging sites. The 'cash' flows in these businesses are mostly social - similar to a barter system.
"I link to your blog, you link to mine."
"I add you to my friends list, you add me to yours."
"I rate you 90% cool, and I expect that you return the favor."
"I share some files, and you share some too."
Currency exchange takes the form of notional goodwill. And you can't make money off that.
_________
After all the negative thoughts, let me tell you there is actually a way to make money from Torrent, but it is pretty long-drawn.
But well, the VCs 0wN their own money. Who am I to complain?