Fastly, a content delivery network company, has raised $50 million in Series E financing round to expand its footprint as a corporate supplier of speedy application, website, and web service delivery.
This latest funding round was led by Sorenson Capital and included Sapphire Ventures as the other new investor. Follow on investment came from Iconiq Capital, Amplify Partners, August Capital, O’Reilly AlphaTech Ventures OATV, and IDG Ventures.
With this round, the total amount of investment raised by the company stands at $180 million. The company had raised $75 million in its last round, which was also led by Iconiq.
Commenting on this, Fastly CEO and founder Artur Bergman, said,
Enterprise brands rely increasingly on edge cloud services to support overwhelming consumer demand for dynamic, secure experiences across web, mobile, and IoT. This additional funding will help accelerate Fastly’s exponential growth trajectory and allow us to continue adding value for our existing customer base.
Sorenson Capital managing director Rob Rueckert, said,
Fastly has consistently demonstrated strong growth and is exceptionally well-positioned to address increasing market demand for cloud services at the edge of the network.
In the press release, the company claims to have achieved 100 percent annualized revenue growth in the last two quarters, and has reached an annualized run rate of $100 million in its five years as a company.
Founded out of San Francisco in 2011, Fastly’s cloud-based edge platform helps content-focused companies operate globally at scale with protection from external security threats and minimal downtime.
CDNs essentially operate by hosting a network of proxy servers in a number of different regions around the world so that the end-users can access the content of the platform quickly.
Beyond its fast speeds, Fastly also offers insights into exactly how it is working. That visibility for customers is what Bergman touts as a key differentiator between Fastly and its competition.
According to a report by Gartner, the global public cloud services market is expected to hit almost $250 billion in 2017. The CDN market specifically is speculated to be worth around $6 billion at present.
In this space, a number of notable players are operating, including Amazon’s AWS CloudFront, CloudFlare, Akamai, and Google’s Cloud CDN service.