PeerApp Gets Funded

Written by Ryan Lawler

Tuesday, January 15. 2008 at 01:20 PM EST Post a comment

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PeerApp Ltd. has cashed in on demand for peer-to-peer (P2P) caching equipment, with a round of financing worth $3 million. The funding round, which is PeerApp's second, came from existing investors Cedar Fund , Evergreen Venture Capital , and Pilot House Ventures .

Frank Childs, PeerApp's vice president of business development and marketing, says the funding will be used to ramp up operations in the fast-growing company. Childs says the company expects to raise one more round of financing in 2008 to bring the company to profitability.

PeerApp is seeing strong growth from service providers looking for ways to deal with P2P traffic. While some carriers have chosen to deploy deep packet inspection (DPI) equipment as a way to manage traffic, PeerApp positions its products as a better way to mitigate such traffic.

Rather than blocking or slowing P2P traffic, PeerApp says its equipment will allow service providers to provide a better quality of experience by locally storing P2P content. That allows service providers to avoid traffic congestion over peering points while serving P2P files more quickly to end users.

PeerApp views its gear as complementary to traditional traffic management tools from companies like Allot Communications (Nasdaq: ALLT), Ellacoya Networks Inc. , and Sandvine Inc. (London: SAND; Toronto: SVC). As a result, Childs says the company "sells its equipment in conjunction with DPI devices on most of its accounts."