UK/Prague based peer to peer file sharing startup AllPeers announced that it is shutting down today: “We have not achieved the kind of growth in our user base that our investors were expecting, and as a result we are not able to continue operating the service.”

AllPeers first launched in 2006 to an incredible amount of user enthusiasm. They allowed anyone to create a private BitTorrent-like file sharing network via a Firefox extension.

We compared AllPeers to a number of competitors in late 2006 and found it to be the best service for those looking to create long term sharing networks with friends. Late last year they turned open source and began to build in full BitTorrent functionality into the service as well.

But apparently none of it was enough to keep the company on its feet. AllPeers had raised a single round of financing from Mangrove Capital Partners and Index Ventures.

AllPeers joins the DeadPool.