It's full speed ahead for Highwinds Network Group Inc., a content distribution provider that has raised $55 million in new equity funding. The startup tapped General Catalyst Partners and Alta Communications to lead the new financing.
Started in 2002, Highwinds has already reached profitability and plans to use the investment proceeds to boost its growth. The announcement of the deal coincides with the release of the company's latest offering, RollingThunder, which serves as the backbone of Highwinds' Internet content delivery infrastructure. The explosion of Internet users coupled with the use of rich media have fueled the growth of content delivery networks, which facilitate delivery of content over the Internet for large companies.
CDNs typically manage a private network of interconnected servers and high-speed fiber-optic network connections that allow users to quickly access high-bandwidth content such as animation, streaming audio and video. Highwinds estimates that more than 1.1 billion people use the Internet compared to 57 million in 1997; at the same time, the average size of content files is growing exponentially.
Although companies such as Akamai Technologies Inc. [AKAM] and Limelight Networks Inc. [LLNW] are the heavyweights of the CDN arena, the growth of traffic and content on the Internet has spurred venture deals for startups trying to break in. In addition to Highwinds' $55 million round, other recent fundings of CDNs include a $15.75 million second round for Panther Express; a $6 million Series B for EdgeCast Networks Inc. from Steamboat Ventures, the venture capital affiliate of Walt Disney Co.; and a $3 million deal for GuyTech USA Inc., commonly known as Dragonfly. - George White
See March 11 press release from Highwinds
See December 2007 story from TheDeal.com
See December 2006 story from TheDeal.com
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