More CDN Sector Activity: Cotendo Gets $7 Million Funding
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.
wow is there no end to the stupidity of the kids at Sequoia? Dumping good money after bad is the governments job. CDN is a joke, focusing on the mid teir companies is a business strategy? Last I heard Akamai and Limelight were in a pitched battle for this type of customer- along with every other HWinds, CDNetworks out there.
Are people that stupid?! do these VC's just not understand the Internets to sucha degree as to assume that throwing a lit match into a pile of wet newspaper will do anyting but put the 7mm match right out.
Panther was about to shut their doors- had no wins, no customers, just a bunch of worthless partnership agreements with no rev attached, worthless "mgt" and a head full of "try" and a belly full of "hope".
PATHETIC.