Backed By Sequoia Capital, New CDN Cotendo Launching Early 2009
Earlier this year, Sequoia Capital invested less than $5 million into a new CDN startup called Cotendo. After spending the past year on development, the company expects to launch their content delivery offering in "early 2009". While there are already too many CDNs in the market shipping bits, Cotendo assures me that they are not going to be focusing on simply pushing traffic and instead will focus on building applications and IP.
The U.S. based company, which currently has their R&D based out of Israel, continues to add new employees to the roster. Former Limelight Networks employees Gary Baldus is now running ops and Mike Sawyer is running marketing. While it is too early to talk in detail about Cotendo’s offering, it’s a hard time for any new company who plans to enter the content delivery market. One of the biggest things Cotendo has going for them is that they have to date, only raised a small round of funding. That being said, I would not be surprised to see Sequoia Capital doing a larger, second round, sometime next year once Cotendo gets up and running. Having only gotten a few million to start, it’s simply not enough capital to bring a product offering to the market with any scale.
More details on Cotendo’s offering will be released to the market later in the year, but in the mean time, the list of content delivery networks just keeps on growing.