Caton Technology raises $50 million in funding to accelerate the growth of next-generation IP delivery networks
As more people share videos over the internet, ISPs (internet service providers ) are finding it more difficult to deliver quality content due to the rapid growth of streaming video traffic. This leads to the need for a new technology known as the content delivery network (CDN).
CDN is a geographically distributed network of a highly-distributed platform proxy servers designed to help minimize latency and delay in serving content by reducing the physical distance between the server and the user. The goal is to provide high availability and performance by distributing the service spatially relative to end-users. CDN helps users around the world view the same high-quality content without slow loading times. Today, there are over one hundred CDN providers globally.
One of the new entrants in the crowded space is Caton Technology, a Hong Kong-based tech startup and a manufacturer of advanced video encoding and data transmission over the Internet. Caton uses IP networks to enable high-quality real-time interactions between people, things, and everywhere in between.
Today, Caton announced it has raised $50 million majority equity investment from Pasaca Capital Inc., a California-based private equity firm. Caton will use the new capital infusion to support its expansion plans to reach more businesses, applications and people with its technology and solution to unlock the internet for superior live video.
Founded in 2016, Caton is one of the leading innovators in enabling IP delivery networks for the broadcast and media industry. Its R2TP technology and global network CatonNet have been integrated successfully as a disrupting solution for the delivery of low latency live IP video transport. Through collaboration with its partners and customers, Caton’s solutions have enabled broadcasters, enterprises, and service providers to efficiently transport broadcast-quality video and large files over any IP network.
“With the increasing demand for high-quality real-time video transmissions and large file transfers, we are excited to invest in Caton and help bring its innovative technology to its fullest potential,” said Sean Rogers, CEO of Pasaca Capital Inc. “We are also pleased to welcome Caton as one of Pasaca’s portfolio companies and be part of our solution to serve digitalization needs across a growing number of industries and geographies.”
“This transaction is a significant vote of confidence in Caton’s innovation, capabilities, and growth strategy,” said Ray Huang, CEO of Caton Group. “We are thrilled that Pasaca recognizes the power of IP networks and what our technology will bring to organizations that are on the path of digital transformation. We look forward to working with Pasaca to deliver game-changing solutions to new markets.”
Today, Caton’s solutions are being used by large multinational customers and network service provider partners to deliver live video over the open Internet for live sporting events, concerts, remote medical diagnosis surgery training, and other emerging applications. Caton has offices in Hong Kong, China, Japan, Singapore, Taiwan, and the U.S.