adBrite Will Shut Down on February 1, 2013

The year 2012 was a roller coaster for independent ad exchange adBrite, which added new executives in May and later tried to find a buyer for the company. The journey toward an acquisition seems to have fallen short in 2013, as adBrite CEO Hardeep Bindra has informed the company’s partners that adBrite will cease operations at the end of the month. In an email sent to adBrite advertisers, the company states:

Over the last few weeks, adBrite and its management have been evaluating the go-forward plan for the business. Given market conditions and certain financial liabilities, in working with our lenders, we have decided to cease operations on Feb 1, 2013.

According to Bindra, he was brought on board to get adBrite ready for a sale. Since that sale isn’t coming, adBrite will instead begin selling off its assets.

The end is a sad one for adBrite, a company that formed in 2003 and served for a long time as an independent ad exchange alternative to Google and Yahoo. The company raised $4 million from Sequoia Capital in 2004 and counted Sequoia as an investor in several other rounds, adding up to $40.4 million in funding raised. At its peak, the adBrite network reached over 160 million unique visitors a month. Now partners of the company will have to find a new ad exchange to work with, and adBrite’s 26 employees will have to find new jobs.

Advertising partners of adBrite are being told that a team is being formed to help with final campaign reporting and invoicing. For companies looking for a new exchange company to work with, some competitors of adBrite include AppNexus and Facebook Ad Exchange, as well as Google’s and Yahoo’s advertising products.

Are you an adBrite partner? If so, how do you feel about the company shutting down?