Ultraband developer PeerApp Ltd. has raised $8 million in its second financing round, just one week after firing 15% of its staff. Current investors Pilot House Ventures, Cedar Fund, and Evergreen Venture Partners led the round. The company said the proceeds would be used to expand sales and marketing operations worldwide.
PeerApp makes intelligent media caching and bandwidth arbitrage solutions for Internet service providers (ISPs). The company has raised $24 million since it was founded in 2002. The company's launched its Ultrabrand bandwidth and media caching systems, which offload traffic from bandwidth-hungry applications for Internet Video, peer-to-peer (P2P) downloads, and frequent software upgrades, in 2006.
PeerApp chairman and CEO Robert Mayer said, "Only media caching can economically satisfy bandwidth demands while upgrading the subscriber's quality of experience."
PeerApp has 40 employees, half at its Herzliya R&D center, following the layoffs, which VP marketing and strategic alliances Frank Childs said were necessary to adapt to the financial situation. "We need to adjust in order to reach profitability sooner. Market uncertainty is high, and we now expect slower growth, which means we must cut costs."
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2008
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