UK broadcasting company Channel 4 has axed its digital investment arm, 4IP, only two years after its launch.
According to The Telegraph, the newly disbanded unit, containing six divisions, will be rolled into one single unit to be known as Channel 4 Online.
Channel 4's 4IP unit was created by former CEO Andy Duncan for investing in upcoming media start-ups. He had raised £20 million for investment partnerships.
The division funded popular iPhone app AudioBoo, which allowed users to record 3 minute audio clips and broadcast them Facebook and Twitter.
The investment unit has spent around £14 million in investments since its inception in 2008.
Channel 4 has confirmed that it will honour all the business commitments it had made under 4IP and the remaining £6 million will be used for "digital format innovation".
Stuart Cosgrove, the director of creative diversity at Channel 4, said in a statement to The Telegraph: “Channel 4 will increase its investment into commissioning digital content, especially with the rise of new platforms, such as YouView [the internet-connected set-top box co-owned by Channel 4, the BBC, ITV, Five, TalkTalk, BT and Arqiva].”