Sources inform ''Globes'' that peer-to-peer (P2P) caching solutions developer PeerApp Ltd. recently closed a $3 million financing round. The company was founded as Tangium in 2002, and has raised $18 million to date, including in the present round. Investors include Cedar Fund, Evergreen Venture Partners, and US fund Pilot House Ventures Group LLC.
PeerApp develops solutions for reducing network traffic load. The company launched its product in 2006, and has had sales to Internet service providers (ISPs), including Israel's Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD), and companies in Asia and Colombia. The company's solution enables ISPs to save on bandwidth needed for applications, such as file-sharing programs.
The company is also developing a content distribution network that is designed to complement its P2P caching products. The new products are intended to help ISPs generate new sources of revenue for-pay products and services. The company believes that leading content providers, such as movie studios, have no choice but to market content online for pay, and it wants to provide the medium for them to do so.
PeerApp refocused its business three years ago and replaced its management. Chairman and CEO Robert Mayer, a former executive at EMC Corp. (NYSE:EMC), runs the company from the US.
PeerApp recently signed a deal with hybrid peer-to-peer content and advertising infrastructure developer Pando Networks Ltd. to integrate the two companies' products in order to improve online content delivery.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2008
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