Digg founder Kevin Rose is resigning from his startup company that he founded back in December 2004. Many sources confirm that Kevin Rose is in the process of resigning from the company while closing a more than $1 million financing round for the startup.

The just under seven-year-old company had an amazing streak of being the most popular content sharing device across the Web. But, on came Facebook and Twitter and we slowly saw the popularity of Digg drop. Things were never better for Digg in mid-2008 when Google almost bought Digg for $200 million before backing out at the last second. This, as some may say, was the start of the down hill for this startup. Morale was low and employees didn’t know what to think after losing such a huge deal.

Since those days Digg has slowly faded away, being pushed out of the way by Twitter and Facebook. This sent the company into to a deep depression; Kevin Rose was so fed up that he didn’t come into the office for many months at a time. Both founder Kevin Rose and then CEO Jay Adelson had a falling out and one had to go.

After weeks of discussion Kevin Rose assumed the CEO position and had to let Jay Adelson go. Kevin Rose assumed his top position till he found Matt Williams last Fall to take his place.

Kevin Rose isn’t as active on Digg as he once was. He has had multiple things on his mind and has kept himself busy with Revision3 and his show Diggnation, among other projects. Digg is all too distant in his memory now, a long forgotten hope that was once great.

In recent tweets he’s mentioned a new project that he is working on but is being secretive about it and won’t reveal much. We can only guess what is going on in that man’s head.