Venture Funding For CDNs is Healthy

Venture funding in the CDN Ecosystem is healthy. More than $288M has been raised by Instart Logic, Aryaka Networks, Fastly, CloudFlare, and Yottaa. Four are them are located in Silicon Valley, and the other one in Boston. All five are successful in their own right. CloudFlare is on track to generate $40M in revenue (run-rate) in 2014. Aryaka, Fastly, Yottaa and Instart Logic now have a comparison benchmark to measure their success, and track their progress. Make no mistake, but its Akamai vs Silicon Valley. Individually, each CDN would have a difficult time taking on Akamai head-to-head, but together in number, they are a force to be reckoned with.

In the past, Akamai would bring its extensive feature set to the table, and compete against Limelight’s and EdgeCast’s extensive feature set. This time its different, Akamai must compete against WaaS, SDAD, Affordable DDoS Mitigation, Microsend Response/Purge, and CDN for CMO’s. If all five CDNs generate annual revenues close to CloudFlare, that’s $200M. If the CDNs double that in 2015, that’s $400M in annual CDN revenue. Here is some neat data.

CDN VC Trends
  • Amount raised in Series B is double of A
  • Amount raised in Series C is double of B
  • Three companies started in 2009
  • Silicon Valley is the CDN Startup Capital of the World

Venture Capital raised by Five US CDNs

CDN Started HQ Seed Series A Series B Series C Series D Debt Total
Instart logic 2010 Mountain View Unknown $9M $17M $26M None None $52M
Aryaka 2009 Milpitas $9.2M $14M $15M $25M $10M $8M $81.2M
Fastly 2011 San Francisco Unknown $4M $10M $40M None None $54M
Cloudflare 2009 San Francisco Unknown $2.1M $20M $50M None None $72.1M
Yottaa 2009 Boston Unknown $4M $9M $16M None None $29M
 $9.2M $33.1M $71M $157M $10M $8M $288.3M

*amounts gathered from crunchbase

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