CDN Vendors Raising More Money, Funding Announcements Coming Shortly
In a two-year time period between 2007 and 2008, CDN vendors raised more than $400M dollars to enter or expand their offerings in the content delivery industry. Not surprisingly, last year we saw almost no funding in the CDN space since the "rate" of traffic volumes slowed and pricing declines kept most vendors from growing their delivery business. With initial projections for 2010 pointing to a better year for CDNs, some of them have taken the opportunity to raise large rounds of funding which will be announced over the coming weeks. While some on Wall Street are already talking about the deals, I'm not giving out any details on the companies or the funding amounts, but I will say that I know of three CDNs who will announce funding deals over the coming weeks.
Who is this stupid? Seriously. Who could possibly believe they are getting a major return on another CDN?
Posted by: Kidding Right? | Tuesday, March 30, 2010 at 02:29 PM
I'm guessing one company is Conviva (www.conviva.com).
Posted by: HmmConvenient | Tuesday, March 30, 2010 at 05:23 PM
Conviva isn't a CDN.
Posted by: Dan Rayburn | Tuesday, March 30, 2010 at 05:49 PM
Not sure that traffic volumes slowed last year. According to comscore, online video growth (US) accelerated in 2009 (14,8B => 33,2B views/month) compared to 2008 (9,8B => 14,3B views/month).
Commercial CDN revenue growth may have slowed due to steeper price declines... or is there also an effect of more online video traffic handled "in-house" by a few very large properties.
Posted by: jaak defour | Wednesday, March 31, 2010 at 02:17 AM
Hi Jack, I was sloppy in my wording. I should have said the "rate" of traffic growth slowed last year, not traffic growth in general. Thanks.
Posted by: Dan Rayburn | Wednesday, March 31, 2010 at 10:34 AM
how about EdgeCast?...maybe HighWinds also...
Posted by: GreenField | Wednesday, March 31, 2010 at 02:25 PM