The deal activity in the content delivery industry continues to tick, as another new CDN gets funded, this time by two VC heavyweights: Cotendo has raised $7 million in its second round of funding, from Sequoia Capital and Benchmark Capital. It has been in incubation for a year, and received its initial first round in Jan last year, also from Sequoia. Last month two smaller CDNs were bought out, though both of them were on the small end: CDNetwork bought Panther Express, and Qualcomm bought Digital Fountain (which had a CDN as well, among other services).

Contendo, based in San Carlos, CA, developed its technology in Israel, and says it is targeting mid-tier companies, thus staying out of the hairs of bigger competitors like Akamai and Limelight. It says it is only one of the two companies in the space that can serve dynamic content for the whole website, the other being Akamai; its service allows application delivery, dynamic site acceleration, and also has a load balancing application. It is deliberately not focusing on video delivery, something others players in the market have served well, it says. More details in release.