More CDN Sector Activity: Cotendo Gets $7 Million Funding

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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.

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jack

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.

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