Austin edge computing startup Vapor IO likes to talk about the "third act of the internet." This is the perhaps inevitable evolution of how we use networked computing, and it's geared toward quickly storing, managing and analyzing data near its sources.
Essentially, it's the type of network service that's required to build out 5G networks, enable autonomous vehicles and power next generation applications that will react magnitudes faster than today's. And Vapor IO just announced a financial boost that will help it become a foundational player in the industry.
The startup, which hasn't previously disclosed its funding, announced Wednesday it has closed a $90 million Series C funding round led by Boston-based private equity titan Berkshire Partners and Houston-based cell phone tower and wireless communications giant Crown Castle. The round was first announced in 2018 and now has been expanded.
"The Third Act of the Internet requires that we build out edge computing infrastructure as quickly as possible," Cole Crawford, founder and CEO of Vapor IO, said in a news release. "By deploying Vapor IO's Kinetic Edge exchange, colocation, and networking services in the top U.S. markets, we provide a platform to deliver low-latency edge capabilities at the intersection of the wireline and wireless networks."
The additional investment from Crown Castle could prove to be key for the companies growth because of its extensive cell phone tower portfolio, which could provide the real estate needed for edge data centers. Back in April last year, Vapor IO worked with Crown Castle to tie its platform in with Amazon Web Services.
Those advances have helped the company attract new clients.
Vapor IO also announced Wednesday a new, nationwide partnership with network security giant Cloudflare. Under the agreement, Cloudflare will use Vapor IO's Kinetic Edge platform to provide low latency internet service in 36 cities.
The move follows Vapor IO's earlier Kinetic Edge deployments in Chicago, Atlanta, Dallas and Pittsburgh. And the company, founded in 2015, shows no signs of slowing down, with coast-to-coast expansion planned.
"Vapor IO has the key ingredients to deliver critical edge computing infrastructure to the top U.S. metropolitan markets," Josh Johnson, principal at Berkshire Partners, said in a statement. "We believe they have the technology, expertise, and access to the required land and fiber to build a nationwide footprint."
