It amazes me to think that it was only a year ago that we came out of stealth mode. Instart Logic has made phenomenal progress since then — we more than quintupled our customer base, expanded our solution and intellectual property, and exceeded all our business targets and milestones. Our customers include some of the most well-known performance-obsessed companies in the world. We have been fortunate to grow our team with some truly exceptional people. And today, we are pleased to announce a $26M fund raise led by Kleiner Perkins Caufield & Byers (KPCB), with continued participation from all our existing major investors, including Andreessen Horowitz, Greylock Partners, Sutter Hill Ventures, and Tenaya Capital.
There are a lot of reasons for us to be excited about this round. Primarily, it will help us expand sales and marketing to meet burgeoning customer demand. The extra cash also allows us to increase our investment in R&D and step up our pace of innovation. Additionally, we will be able to tap the expertise and reach of KPCB. They have backed some truly exceptional, market-defining companies like Google, Amazon, Sun Microsystems, Verisign, Nest and Intuit, and we are proud to be part of their portfolio. Our round, like our previous one, was oversubscribed, and we were in the fortunate position to have a lot of choices in front of us. We were excited to see enthusiasm in all prospective investors about our team, technology and the market that we are going after.
There has been a storm of innovation in the application infrastructure market in the last few years. Companies now build increasingly personalized applications accessed by users over hundreds of different kinds of devices, most of which connect to the Internet over a wireless network. In their bid to satisfy and engage with the zero-patience generation of users, they have all dashed to invest in recent innovations in application serving infrastructure, such as low-latency storage, Gigabit Ethernet, scale-out datacenters and SDN. Numerous powerful application development tools (such as node.js and jQuery) and frameworks like Ruby on Rails are now available to developers to quickly build powerful and rich applications.
However, the delivery infrastructure most commonly used by these applications, namely content delivery networks (CDN), is still handcuffed to the past. The fundamental problem with the CDN architecture is that it doesn’t address the performance problem where it hurts the most: the wireless last mile, or what we call the congestion bottleneck. Additionally, its middle-mile-centric solution has eroded in value with commoditization of hardware and bandwidth. So, ironically, while the Internet is continuously getting faster, application delivery performance is at an all-time low. This is where Instart Logic comes in.
Instead of banking (literally!) on aggregated hardware and bandwidth performance, our service comprises intelligent software that can accelerate application delivery. Our team has built an innovative client-cloud architecture that enables on-the-fly control of all the resources accessed by the application, and optimizes its performance end-to-end. It is an easy replacement for legacy CDN services, and delivers immediate benefit to customers switching over to our service. Our customer success team works hard to onboard new customers smoothly and see that they achieve the maximum value from our technology.
The important recognition from both our Series C investors and Gartner — naming us a 2014 Cool Vendor in the Cool Vendors in Web Computing 2014 report — is a powerful combination, and our whole team feels it. We are currently working on a fascinating new service release and you can certainly expect more news from Instart Logic in the coming months. As for now, I am thrilled to welcome KPCB to our family. We have built a world-class team, and I am sure they will feel right at home with us! Google