Hola VPN has raised $17m in a new Series C funding. The Israeli company is behind the popular Hola Unblocker, a free VPN service that allows users to access geo-blocked content.
The company fell into some controversy earlier this year when it was revealed that it was selling user bandwidth to third parties and creating potential security risks at the same time.
The issue doesn’t appear to have spooked investors though with this funding round being led by Iris Capital.
This funding news comes at the same time that Hola has launched HolaCDN, its own video distribution network.
“Its market-leading P2P technology is already dominating two major markets and now will disrupt the $5 billion/year CDN market,” said Jacky Abitbol, Venture Partner at Iris Capital
“Making the Internet faster has always been our passion,” said Ofer Vilenski, CEO of Hola. “We’ve taken everything we’ve learned from building and managing a P2P network with our 52 million consumer users and built a P2P CDN network that pools server resources to create new cost efficiencies and capabilities that provide video publishers unmatched cost savings with increased quality.”
The company, which is headquartered in Tel Aviv, will be increasing its engineering and product management staff over the next year, thanks to the new funds.