Speedera Networks Inc has received a $6.5m cash injection, allowing it to expand its sales force and international presence, and pay off $3m of long-term debt, leaving the company debt free and profitable on an operating basis.
The funding was led by Trinity Ventures and follows $20m VC funding in April 2001, a $10m financing deal from Comdisco in 2000, a $10m financing deal from Hewlett-Packard Co in 2000, and an undisclosed amount of VC seed funding in 1999.
In keeping with tradition, the company also took the opportunity to put the boot into its main rival, market-leading Akamai Technologies Inc, which says its business plan is fully funded and expects to be profitable next year. The two firms are involved in acrimonious tit-for-tat lawsuits and fierce competition for customers.
CEO Ajit Gupta said in a statement he thinks the company’s new financial status is an astounding accomplishment considering that Speedera’s main competitor, Akamai, has $300m in debt, declining revenues, and may still be years away from profitability even after recent substantial layoffs.