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Web services investor calls it quits

Engaged in a struggle with financial backers including Netscape Communications co-founder Marc Andreessen, 12 Entrepreneuring is closing up shop.

Margaret Kane Former Staff writer, CNET News
Margaret is a former news editor for CNET News, based in the Boston bureau.
Margaret Kane
Internet incubator 12 Entrepreneuring is closing up shop, sources close to the company confirmed Monday.

12, founded by Halsey Minor, who also founded News.com publisher CNET Networks, has been engaged in a struggle with some of its financial backers, which include Netscape Communications co-founder Marc Andreessen and Angel Investors chief Ron Conway.

Officials for 12 Entrepreneuring were not immediately available for comment.

There had been complaints 12 was spending too much money in relation to the return it was getting on its investments. 12 will refund some of its remaining money to its backers, sources confirmed.

The company, which launched in February 2000, had raised $137 million over the past 18 months. The money was invested in Web services companies, including Grand Central, Oxygen Software and iBuilding, which has since gone out of business.

Employees were informed of the news last week, sources said.