Yesterday EdgeCast Networks dipped back into the private equity markets to raise another $54M in new financing. The new funds will go toward driving additional growth in the form of additional services, intellectual property, and international sales and marketing.
EdgeCast recently unveiled a dedicated e-commerce CDN, taking on the CDN heirarchy from a new angle. More broadly they have been partnering with network operators around the world to extend their presence and challenge Akamai's leadership of the sector. The new funds will give them more resources with which to continue both lines of attack.
As they are privately held, EdgeCast only offers hints about its underlying finances. However, they have posted rapid organic growth over the past few years as well as actual profits to go along with it. Their current trajectory doesn't seem to require this new funding, so I'm curious to see the particulars of what they'll be investing it in.
The new round of funding had both equity and debt components. It was led by Performance Equity Management, and included follow-on participation by their backers Menlo Ventures and Steamboat Ventures. At some point I wonder if they'll pursue an IPO, however for now it does appear that private equity continues to have a generally higher opinion of internet infrastructure assets than the overall market does.Content Distribution · Financials