SOURCE: PeerApp

November 11, 2008 09:20 ET

PeerApp Raises US$ 8 Million in Series B Funding

NEWTON, MA--(Marketwire - November 11, 2008) - PeerApp Ltd., the leader in Intelligent Media Caching and bandwidth arbitrage solutions for Internet Service Providers (ISPs), today announced that it has raised US$ 8 Million in Series B funding. The round was led by existing investors Pilot House Ventures, Cedar Fund and Evergreen Venture Partners. The funds will be used to expand sales and marketing operations worldwide to meet increasing demand for PeerApp's products from the broadband and wireless markets.

"We're seeing tremendous demand for our products from service providers around the world, as growing volumes of peer-to-peer and HTTP streaming traffic cause congestion and dramatically increase their network costs," said Robert Mayer, PeerApp's CEO and chairman. "This additional investment will enable us to get our solutions to more customers in more markets."

PeerApp has deployed more than 100 UltraBand™ bandwidth and media caching systems since the product's introduction in 2006. By caching popular content within the ISP network, UltraBand systems help ISPs reduce their bandwidth costs by as much as 50% and deliver file downloads and video streams up to 800% faster than non-cached traffic. On average, PeerApp provides an ISP an additional 30% bandwidth on any or all Internet circuits, enabling deferment of costly upgrades.

UltraBand products offload traffic from bandwidth-hungry applications for Internet Video, peer-to-peer (P2P) downloads, and frequent software upgrades. Combined, these applications consume over 65% of today's Internet traffic, and are by far the fastest growing source of bandwidth demand. Traditional responses to bandwidth demand -- such as adding bandwidth -- can be prohibitively expensive, and "shaping" applications leads to lower service quality and poor subscriber satisfaction. "Only media caching can economically satisfy bandwidth demands while upgrading the subscriber's quality of experience," said Mayer.

"All research indicates that video traffic and P2P downloads will continue to grow well beyond the planned bandwidth and infrastructure capacities of ISPs," said Amnon Shoham, managing partner at Cedar Fund. "We believe that PeerApp's media caching is clearly becoming a necessary network infrastructure element for service providers worldwide. This is particularly true in markets where bandwidth growth is off the charts. The fact that PeerApp products deliver content faster than traditional transit bandwidth makes the overall solution extremely compelling."

Stephen Van Beaver, managing partner of Pilot House Ventures, noted: "PeerApp's UltraBand system has helped ISPs defer circuit and network infrastructure equipment upgrades. The UltraBand typically delivers a 6- to 9-month return on investment. And beyond this, bandwidth savings continue to accrue every month the UltraBand is operational."

About PeerApp Ltd.

PeerApp (www.peerapp.com) is the technology innovator and leading provider of solutions that help ISPs and content providers worldwide manage P2P and HTTP video traffic to improve network efficiency while enhancing subscribers' Quality of Experience (QoE). Based on patented P2P caching and acceleration technology, PeerApp solutions have helped ISPs worldwide create unique competitive advantage, sustain network growth, and improve subscriber QoE.

Contact Information

  • Contact:
    Mark Strangio
    PeerApp Ltd.
    Email Contact
    +1-617-795-0977 x116