Cotendo has raised a $12 million Series C financing round to bolster its growing business for dynamic site acceleration and small object delivery. The funding round, which was led by Tenaya Capital and includes existing investors Sequoia Capital and Benchmark Capital, will enable the content delivery network to add new features and functionality to its product portfolio, while also helping it to expand internationally. Along with the funding, Tenaya managing director Tom Banahan will join Cotendo’s board.
While most CDNs are geared toward enabling media companies to better deliver video and other rich media objects to end users, Cotendo has taken a bit of a contrarian approach, focusing primarily on speeding up the delivery of small or dynamic objects. As a result, Cotendo’s products are more aimed at electronic retailers, financial services firms, social networks, news organizations and other sites that are not media-heavy, but could benefit from faster loading times.
It’s a high-value and high-margin business, and one that Akamai has essentially owned ever since it acquired Netli in 2007. But it’s also an increasingly crowded segment, as competitors such as Limelight Networks, CDNetworks and Edgecast have all announced plans to roll out dynamic site acceleration products of their own.
Altogether Cotendo has raised a total of about $22 million, including a $7 million round that it announced in March 2009. With the new financing, Cotendo hopes to continue its market expansion in Europe, where it recently opened offices in France and Germany. The company also hopes to add more functionality to its product suite, which will help its customers to improve SEO and transactional services.